The Retention Effects of High Years of Service Cliff-Vesting Pension Plans
Abstract
We study the retention effects of the Australian military’s decision to remove a 20-year cliff-vesting requirement from their retirement system in 1991. We follow to the present individuals who self-selected into and out of the 20-year cliff-vesting plan, as well as those who were forced out of the plan. Eliminating the high years of service cliff-vesting provision leads to consistently higher attrition over time.
Description
The article of record as published may be found at http://dx.doi.org/10.1016/j.econlet.2014.11.005
Supplementary material related to this article can be found online at http://dx.doi.org/10.1016/j.econlet.2014.11.005.