Search

A study examined the issue of contracting out traditional government services and its effect on government employees. It found that local governments contract out for two principal reasons: to cut the cost of providing services and to employ specialized skills and resources unavailable within the government. Findings from a review of the privatization literature were that: (1) only about 5-10 percent of public employees affected by contracting out were laid off; (2) public assistance payments to laid-off workers were very low; (3) private contractors paid lower wages and offered lower fringe benefits; (4) contracting out was not inherently harmful to minorities or women; and (5) contracting may have a slightly positive impact on the number of available jobs. Interviews with local officials from 17 cities and counties generally confirmed these findings and indicated that very few workers were laid off as a result of contracting out and few cities had formal contracting out employment policies. Policy recommendations were as follows: (1) target new and expanded services for contracting out; (2) establish a "no layoff" policy; (3) reduce the government work force through attrition; (4) encourage government employees to form private companies to provide government services; (5) allow the city agency to compete in the bidding process; and (6) develop policies for aiding displaced public employees. (66 references) (YLB)

This document, examining transition to retirement from a sociological perspective, consists of four sections and a 14-item bibliography. The first section traces the evolution of West German retirement from what was considered a new phenomenon into what is now commonly assumed to be a normal or even natural life stage. The second section discusses the recent changes (earlier eligibility for pensions, a shortage of jobs and concomitant increase in disability pensions, and new preretirement programs aimed at bridging the gap between early exit from work and entry into the pension system) that have moved the time of exit from the work force to an earlier and earlier age for many West Germans. The third section examines the preretirement program. The fourth section examines the consequences of these changing retirement patterns in West Germany. Among those consequences are that the age of retirement cannot continue to come earlier and earlier; retirement becomes less and less associated with the concept of "old age"; financial and other planning must become more individualized as people retire earlier; and in the year 2030, contributions to the West German pension system as currently set up would require about 35 percent of personal incomes. (CML)

This report summarizes the findings of the National Education Association's 1985 Retirement Provisions Survey. The survey encompasses all U.S. public retirement systems that include teachers or educational support personnel. The survey addressed all major plan administration topics including retirement eligibility provisions, benefit formulas, disability and survivor benefits, plan governance, funding status, and investment policies and performance. The six major areas given primary attention are: (1) coverage of retirement systems; (2) retirement benefit provisions; (3) eligibility for retirement benefits; (4) legislation and governance; (5) plan assets and income; and (6) investment policies. (JD)

A Labor Department task force examined issues relating to the United States' maturing labor force and outlines policy alternatives to address those issues. Major findings were summarized in three categories: (1) in tomorrow's work force, the median age of workers will be higher; older people will be healthier, live longer, and be available for work longer; but older workers may opt for earlier retirement instead of continued employment; (2) tomorrow's workplace will want and need older workers; will need to reconsider traditional methods of recruiting, training, and managing older workers; and may be expected to restructure benefit packages to address the needs and expectations of the work force, reduce job turnover, and offer incentives to mature workers to retire later; and (3) key public policies must enable older workers to remain in or return to the work force without institutional barriers limiting their choices; must ensure that employers are not prevented from effectively responding to the opportunities and challenges for recruitment and retention of workers in light of demographic trends; and should encourage workers and employers to pursue the most effective means for enhancing and upgrading the skills and capacity of the work force to ensure the best use of human resources. (KC)

Social assistance mechanisms are driving the early retirement trend in Europe. Traditional life stages are disappearing, being replaced by new flexibility in managing the life course. The social security system needs to be reconsidered. (SK)

In individual and group interviews, 14 retiring Scottish headteachers discussed their decision to apply for early retirement. Perceived pushes from the system included external pressures, job expansion/overload, bureaucracy, local authority support, loss of job satisfaction, and school relationships. Early retirement among these principals stemmed from current retirement trends, job stress, and lack of management support. (24 references) (MLH)

Study of the employment effects of reducing working hours, controlling overtime, job sharing, leave, and early retirement in 10 countries found no significant link between job sharing and employment levels. Work time policies need to be considered in a wider context as a way to address high unemployment. (SK)

Work attachment of men aged 58-63 fell dramatically from 1969-89, with a sharp reduction at age 62 that is probably due to Social Security's early retirement provision. Nonpension income and the interaction between private pensions, personal assets, and Social Security may also play a large role. (SK)

While the changes facing dental education are greater than ever, skillful planning will allow appropriate response. This will require reevaluation of faculty costs and resources. Cost containment measures could include early retirement programs, decreasing underutilized staff, and maximizing productivity. Income increases could be realized through clinics, marketing of faculty services, fund-raising, and funded research. (MSE)

The University of Virginia's retirement incentive program for older, full-time, tenured faculty provided two options: phased retirement and a retirement decision contract establishing a firm retirement date. Evaluation indicates this plan was effective in meeting the interests and needs of participants and the institution and saved institutional resources. (MSE)

Includes "Introduction" (Hanratty, Mitchell); "Health Insurance and Job Mobility" (Monheit and Cooper; Gruber and Madrian); "Effect of Access to Post-Retirement Health Insurance (HI) on Decision to Retire Early" (Karoly, Rogowski); "Employer-Provided HI and Retirement Behavior" (Gustman, Steinmeier); "Workers' Preferences among Company-Provided HI Plans" (Barringer, Mitchell); and "Medical Cost Containment under Workers' Compensation" (Pozzebon). (SK)

According to 200 usable responses from 725 government agencies, about 25% mandate preretirement programs, 52% offer them. Their use as a strategy to open career paths may backfire and discourage retirement. Many of these programs are failing to recognize the growing diversity of the workforce. (SK)

Explores the attitudes of older (Australian) female education workers toward continuing to work or retiring early. Little interest was shown in early retirement, partly because it was not an attractive financial option and partly because of strong commitment to continued workforce participation. Shows how former discriminatory practices have disadvantaged women and urges organizations to implement policies that better utilize older workers' talents. (MLH)

School districts offer teacher early retirement incentive plans (TERIPs) as an opportunity to hire less expensive teachers, reduce fringe benefits costs, and eliminate teaching positions. Discusses reasons for teachers to accept TERIP, and describes a computer model that allows school officials to calculate and compare costs incurred if an incentive is offered or not offered. (Contains 18 references.) (MLF)

The uncapping of college faculty retirement age in 1994 has implications for tenure, retirement programs, and potential for age discrimination litigation. Institutions should carefully examine the probable impact of the change on the quality of their academic programs and financial situation and develop contingency plans as early as possible. (MSE)

In 1991, a study was conducted to provide a demographic profile of Colorado's community college faculty; to determine their retirement intentions; to predict the percent of faculty retiring over the next 14 years; to ascertain those incentives most favorable for retaining the services of faculty beyond their retirement eligibility; and to determine other aging/retirement concerns and perceptions. Surveys were delivered to 1,005 full-time teaching faculty and presidents at the state's 15 community colleges. Study findings, based on a 64.2% response rate, included the following: (1) over 57% of the full-time teaching faculty were over 44 years old, and nearly 20% were over 55; (2) 68.1% of the full-time teaching faculty had graduate degrees; (3) of the full-time teaching faculty 55 years of age and older, 92% planned to continue teaching until retirement eligibility; (4) the major concerns of the respondents about retiring and aging--regardless of age--were adequate financial resources and physical/health problems; (5) most of the respondents favored some form of incentive to continue working beyond retirement eligibility, particularly a raise for each year worked beyond retirement eligibility and part-time work after retirement at a prorated full-time salary; and (6) the respondents agreed that working beyond retirement was often related to income issues and that teaching opportunities at the college were limited for retired faculty. The survey instruments are attached. (JMC)

Through a faculty retirement survey and a review of the literature, Clemson University, South Carolina, studied the future labor market for college faculty. The survey was administered to 1,250 faculty at the university in Fall, 1991. Fifty-six responded with data indicating that the College of Sciences, and the College of Agricultural Sciences will be most affected by retirement in the coming decade. Engineering has fewer prospective retirees, and Architecture, Nursing, and Commerce and Industry are least threatened by faculty retirement in the next decade. An examination of overall market conditions found that the baby boom will continue to exert an important influence on the labor market, and that the size of the pool of students in the coming decade is unclear. A look at broad trends in specific disciplines and groups of disciplines nationally and at Clemson found that departments in Agriculture and Natural Resources are encountering an aging faculty and diminishing enrollments; that the faculty in business disciplines are relatively young; that the patterns of retirements and replacement pools in education follow general trends in other disciplines; that a shortage of engineering faculty continues; that Forestry and Parks, Recreation and Tourism Management enjoy strong enrollments; that a long oversupply and underemployment in liberal arts is coming to an end; that nursing is experiencing increases in enrollment; and that the sciences face falling enrollments. Included are 3 graphs and 23 notes. (JB)