Public Employee Pension Plans (United States)
Encyclopedia
In the United States
, public sector pension
s are offered by federal
, state
and local
levels of government. They are available to most, but not all, public sector employees. These employer contributions to these plans typically vest
after some period of time. These plans may be defined-benefit
or defined-contribution
pension plans, but the former have been most widely used by public agencies in the U.S. throughout the late twentieth century. Some local governments do not offer defined-benefit pensions but may offer a defined contribution plan. In many states, public employee pension plans are known as Public Employee Retirement Systems (PERS).
and, more extensively, the Civil War
. They were expanded greatly, and began to be offered by a number of state and local governments during the early Progressive Era
in the late nineteenth century.
Federal civilian pensions were offered under the Civil Service Retirement System
(CSRS), formed in 1920. CSRS provided retirement, disability and survivor benefits for most civilian employees in the federal government, until the creation of a new federal agency, the Federal Employees Retirement System
(FERS), in 1987.
Retired pay for U.S. Armed Forces retirees is, strictly speaking, not a pension but instead is a form of retainer pay. U.S. military retirees do not vest into a retirement system while they are on active duty; eligibility for non-disability retired pay is solely based upon time in service. Unlike other retirees, U.S. military retirees are subject to involuntary recall to active duty at any time, though the likelihood of such a recall is remote, especially after age 60. In 2008, there were 1,983,467 retired military in the US. There were 856,677 receiving military pensions, the remainder carrying their longevity into federal civil service positions.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, public sector pension
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
s are offered by federal
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
, state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
and local
Local government
Local government refers collectively to administrative authorities over areas that are smaller than a state.The term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or federal government...
levels of government. They are available to most, but not all, public sector employees. These employer contributions to these plans typically vest
Vesting
In law, vesting is to give an immediately secured right of present or future enjoyment. One has a vested right to an asset that cannot be taken away by any third party, even though one may not yet possess the asset. When the right, interest or title to the present or future possession of a legal...
after some period of time. These plans may be defined-benefit
Defined benefit pension plan
In economics, a defined benefit pension plan is a major type of pension plan in which an employer promises a specified monthly benefit on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending on investment returns...
or defined-contribution
Defined contribution plan
In economics, a defined contribution plan is a type of retirement plan in which the amount of the employer's annual contribution is specified. Individual accounts are set up for participants and benefits are based on the amounts credited to these accounts plus any investment earnings on the money...
pension plans, but the former have been most widely used by public agencies in the U.S. throughout the late twentieth century. Some local governments do not offer defined-benefit pensions but may offer a defined contribution plan. In many states, public employee pension plans are known as Public Employee Retirement Systems (PERS).
History
Public pensions got their start with various promises, informal and legislated, made to veterans of the Revolutionary WarAmerican Revolutionary War
The American Revolutionary War , the American War of Independence, or simply the Revolutionary War, began as a war between the Kingdom of Great Britain and thirteen British colonies in North America, and ended in a global war between several European great powers.The war was the result of the...
and, more extensively, the Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
. They were expanded greatly, and began to be offered by a number of state and local governments during the early Progressive Era
Progressive Era
The Progressive Era in the United States was a period of social activism and political reform that flourished from the 1890s to the 1920s. One main goal of the Progressive movement was purification of government, as Progressives tried to eliminate corruption by exposing and undercutting political...
in the late nineteenth century.
Federal civilian pensions were offered under the Civil Service Retirement System
Civil Service Retirement System
The Civil Service Retirement System organized in 1920 and has provided retirement, disability and survivor benefits for most civilian employees in the US federal government. Upon the creation of a new Federal Employees Retirement System in 1987, those newly hired after that date cannot...
(CSRS), formed in 1920. CSRS provided retirement, disability and survivor benefits for most civilian employees in the federal government, until the creation of a new federal agency, the Federal Employees Retirement System
Federal Employees Retirement System
The Federal Employees Retirement System is the current retirement system for employees within the U.S. federal civilian employees...
(FERS), in 1987.
Federal
- Federal Employees Retirement SystemFederal Employees Retirement SystemThe Federal Employees Retirement System is the current retirement system for employees within the U.S. federal civilian employees...
- covers approximately 2.44 million full-time civilianCivilianA civilian under international humanitarian law is a person who is not a member of his or her country's armed forces or other militia. Civilians are distinct from combatants. They are afforded a degree of legal protection from the effects of war and military occupation...
employees (as of Dec 2005).
Retired pay for U.S. Armed Forces retirees is, strictly speaking, not a pension but instead is a form of retainer pay. U.S. military retirees do not vest into a retirement system while they are on active duty; eligibility for non-disability retired pay is solely based upon time in service. Unlike other retirees, U.S. military retirees are subject to involuntary recall to active duty at any time, though the likelihood of such a recall is remote, especially after age 60. In 2008, there were 1,983,467 retired military in the US. There were 856,677 receiving military pensions, the remainder carrying their longevity into federal civil service positions.
State
Each of the 50 US states has at least one retirement system for its employees. There are 3.68 million full-time and 1.39 million part-time state-level-government civilian employees as of 2002.- AlaskaAlaskaAlaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait...
- Alaska Retirement System - AlabamaAlabamaAlabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
- Retirement Systems of AlabamaRetirement Systems of AlabamaRetirement Systems of Alabama is the administrator of the pension fund for employees of the state of Alabama. It is headquartered in Montgomery, Alabama. David G. Bronner is the chief executive officer.... - ArizonaArizonaArizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
- Arizona State Retirement System and Public Safety Personnel Retirement System of Arizona - ArkansasArkansasArkansas is a state located in the southern region of the United States. Its name is an Algonquian name of the Quapaw Indians. Arkansas shares borders with six states , and its eastern border is largely defined by the Mississippi River...
- Arkansas currently has six retirement systems which cover most employees at the state and local level: Judicial Retirement, Public Employees Retirement, State Highway Employees Retirement, State Police Retirement, District Judges Retirement and Teacher Retirement. - CaliforniaCaliforniaCalifornia is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
- CalPERSCalPERSThe California Public Employees' Retirement System or CalPERS is an agency in the California executive branch that "manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families"...
(California Public Employees' Retirement System), CalSTRSCalSTRSThe California State Teachers' Retirement System provides retirement, disability and survivor benefits for California's 852,316 prekindergarten through community college educators and their families...
(California State Teachers' Retirement System) - ColoradoColoradoColorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
- Colorado Public Employees Retirement Association - ConnecticutConnecticutConnecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...
- Connecticut Teachers' Retirement Board - IllinoisIllinoisIllinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
- State Employees’ Retirement System (SERS) - MassachusettsMassachusettsThe Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
Massachusetts State Board of Retirement - MinnesotaMinnesotaMinnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state...
- Public Employees Retirement Association of Minnesota - NevadaNevadaNevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
- Public Employees' Retirement System of Nevada - New HampshireNew HampshireNew Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...
- New Hampshire Retirement SystemNew Hampshire Retirement SystemThe New Hampshire Retirement System is the pension system of that United States state for its public employees. It is required by Article 36 of the New Hampshire State Constitution... - New MexicoNew MexicoNew Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...
- Public Employees Retirement Association of New Mexico, see external PERA homepage - New YorkNew YorkNew York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
- New York State and Local Retirement System, New York State Local Police and Fire Retirement System, New York State Teachers' Retirement System - OhioOhioOhio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
- Ohio Public Employees Retirement System, - OklahomaOklahomaOklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...
- Oklahoma Public Employees Retirement SystemOklahoma Public Employees Retirement SystemThe Oklahoma Public Employees Retirement System is an agency of the government of Oklahoma that manages the public pension system for majority of Oklahoma state employees... - OregonOregonOregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
- Oregon Public Employees Retirement SystemOregon Public Employees Retirement SystemThe Public Employees Retirement System is the retirement and disability fund for public employees in the U.S. state of Oregon established in 1946. Employees of the state, school districts, and local governments are eligible for coverage. A health insurance plan for covered retirees was added to... - PennsylvaniaPennsylvaniaThe Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
- State Employees' Retirement System and Public School Employees' Retirement System - UtahUtahUtah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...
- Utah Retirement Systems - WisconsinWisconsinWisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
- Wisconsin Dept of Employee Trust Funds
Local
Many U.S. cities are allowed to participate in the pension plans of their states; some of the largest have their own pension plans. The total number of local government employees in the United States as of 2002 is 13.2 million. There are 10.15 million full-time and 3.13 million part-time local-government civilian employees as of 2002.See also
- Political divisions of the United StatesPolitical divisions of the United StatesThe political units and divisions of the United States include:*The 50 states are subdivided into counties . The counties may be further subdivided into townships, or towns in New York and New England...
- States of the United States related lists
- Retirement plans in the United StatesRetirement plans in the United StatesA retirement plan is a financial arrangement designed to replace employment income upon retirement. These plans may be set up by employers, insurance companies, trade unions, the government, or other institutions. Congress has expressed a desire to encourage responsible retirement planning by...
- Social Security AdministrationSocial Security AdministrationThe United States Social Security Administration is an independent agency of the United States federal government that administers Social Security, a social insurance program consisting of retirement, disability, and survivors' benefits...
External links
- U.S. Census Bureau page for local government
- Directory of state pension executives
- Public employee retirement systems
- Overview of Pension Crises
State Links
- Alaska state retirement system
- Alabama state retirement system
- Arkansas Public Employees Retirement System
- Arkansas Teacher Retirement System
- Arkansas State Highway Employees Retirement System
- California CalPERS
- Colorado PERA
- Delaware Office of Pensions
- Wisconsin Dept of Employee Trust Funds
- http://www.osc.state.ct.us/empret/ Connecticut retirement system
- Ohio Public Employee Retirement System
- Utah Retirement Systems