How will COVID-19 affect pensions for noncovered workers?

Aubry, Jean-Pierre, Kevin Wandrei, and Laura D. Quinby. “How will COVID-19 affect pensions for noncovered workers?”. CRR WP 2021-19, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, November 2021. http://hdl.handle.net/2345/bc-ir:109316.
PREVIEW Datastream

Abstract

Federal law allows certain state and local government employees to be excluded from Social Security if they are covered by an employer pension of sufficient generosity. As a result, approximately one-quarter of state and local workers are not covered by Social Security on their current job. Before COVID-19, these "FICA replacement plans" all satisfied the letter of the law in terms of providing benefits of sufficient generosity. This study has three aims. The first is to document the immediate impact of COVID-19 on the financial status of FICA replacement plans. The second is to investigate whether COVID-19 has led to cuts in benefit promises among plans, as well as the likelihood of future cuts. The third is to investigate the likelihood that FICA replacement plans will exhaust their trust fund assets and default on benefit promises.

Title
How will COVID-19 affect pensions for noncovered workers?
Author
Aubry, Jean-Pierre
Wandrei, Kevin
Quinby, Laura D.
Center
Center for Retirement Research
Genre
working paper
Date Issued
November 2021
Publisher
Center for Retirement Research at Boston College
Series Title
CRR WP
Series Number
2021-19
Persistent Link
http://hdl.handle.net/2345/bc-ir:109316
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
State and Local Pensions

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