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dc.contributor.authorCunha, Jesse M.
dc.contributor.authorMenichini, Amilcar A.
dc.dateFebruary 2014
dc.date.accessioned2014-06-13T15:44:01Z
dc.date.available2014-06-13T15:44:01Z
dc.date.issued2014-02
dc.identifier.urihttp://hdl.handle.net/10945/42309
dc.descriptionApproved for public release; distribution is unlimited.en_US
dc.description.abstractWe study a choice made by over 20,000 U.S. military personnel annually between the High-3 and Redux retirement plans. Compared to High-3, Redux offers a $30,000 current lump sum payment in exchange for lower future annuity payments. Despite break-even discount rates between 10% and 25%, about 40% of individuals chose Redux. The likelihood of choosing Redux is decreasing with the break-even discount rate and is related to individual demographics. The implied personal discount rates from this choice are around 9.2%, much lower than found previously. Offering this choice has already saved the government over $2 billion in future retirement payments.en_US
dc.publisherMonterey, California. Naval Postgraduate Schoolen_US
dc.rightsThis publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. As such, it is in the public domain, and under the provisions of Title 17, United States Code, Section 105, may not be copyrighted.en_US
dc.titlePensions and intemporal choice: evidence from the U.S. militaryen_US
dc.typeTechnical Reporten_US
dc.contributor.departmentGraduate School of Business & Public Policy (GSBPP)
dc.subject.authorretirementen_US
dc.subject.authorpensionen_US
dc.subject.authorintertemporal choiceen_US
dc.subject.authormilitaryen_US
dc.identifier.npsreportNPS-GSBPP-14-001


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