Employer-Sponsored Pensions: A Primer

Source: Brendan Cushing-Daniels and Richard W. Johnson, Urban Institute, January 29, 2008

The shifting pension landscape raises questions about the financial security of future retirees. About one-half of private-sector workers are not covered by employer-sponsored pension plans on their current job. Many private-sector employers have replaced traditional pensions with 401(k)-type plans, which protect benefits for workers who change jobs frequently but expose participants to investment risks. This primer describes pensions, workers with coverage, and related policy issues.

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