New Research Finds Americans Supportive of Pension Benefits for Public Employees

Nationwide Survey by the National Institute on Retirement Security Indicates 86 Percent of Americans Say All Workers, Not Just Public Employees, Should Have a Pension

WASHINGTON, Oct. 29, 2024 /PRNewswire/ -- A new research infographic from the National Institute on Retirement Security (NIRS) finds strong support among Americans for retirement benefits provided to state and local government employees. Eighty-six percent of Americans say all workers, not just those employed by state and local governments, should have a pension. This support holds strong across political party affiliation, with Democrats in agreement at 89 percent, Independents at 86 percent, and Republicans at 83 percent.

Americans also view pensions as an effective workforce tool for recruiting and retaining public service employees. Eighty-two percent of Americans agree that pensions are a good way to recruit and retain qualified teachers, and 84 percent say that pensions are a good way to attract and keep qualified public safety employees.

These findings are detailed in a new research infographic from NIRS, "What Do Americans Think About Pensions For Public Employees?" The findings are based upon a national survey of working-age Americans conducted by Greenwald Research. Read the infographic.

This infographic is a supplement to a recent NIRS report, Retirement Insecurity 2024: Americans' Views of Retirement. Read the report.

"It's encouraging that Americans see the value of providing retirement benefits to employees who deliver essential public services, especially at a time when state and local governments continue to struggle filling public jobs," said Dan Doonan, NIRS executive director and report co-author. "Pension plans are employee magnets that help keep public employees in jobs for their career, which strengthens public services and lowers workforce costs for cities and states."

"Another important point in the research is that Americans view pensions as a retirement benefit that should be available to all workers, not just those working in public jobs," Doonan said. "We're seeing that preference play out across the country as we see Boeing workers advocate for re-instatement of their pensions and on the heels of IBM's recent announcement that the company will resume offering pensions to its employees," Doonan said. 

Additional findings of this nationwide survey are as follows:

• 82 percent of Americans agree public pension benefit levels are either too low or about right. The average retirement benefit for public workers is about $2,428 a month, though some employees receive more or less depending on their local cost of living.
  
  
• More than three-fourths of Americans say pensions for teachers make sense because these benefits compensate for educators' lower pay. Eighty-two percent agree that those who work in public safety have risky jobs, and therefore should have a pension to provide these workers a secure retirement.
  
  
• More than three-fourths of Americans agree public employees should receive pension benefits because they help finance part of the cost by contributing money out of every paycheck.

As of September 2024, state and local governments employ about 20.4 million workers, or about 13 percent of the U.S. workforce, according to the U.S. Bureau of Labor Statistics data. This includes professionals who deliver essential taxpayer services.

The vast majority of state and local government employees have a defined benefit pension as part of their compensation, largely because these retirement benefits help attract and retain employees for a public service career. Typically, public employees contribute to their pension benefits each pay period throughout their career. Most public employee pension benefits are paid for with employee contributions and investment income. According to the U.S. Census Bureau data, for the 30 years 1992 through 2021, investment earnings accounted for 64 percent of public pension revenues, employer contributions made up approximately 25 percent, and employee contributions were approximately 11 percent.

Conducted by Greenwald Research, information for this research infographic was collected from online interviews between October 10-25, 2023. A total of 1208 individuals aged 25 and older completed the survey. The final data were weighted by age, gender, and income to reflect the demographics of Americans aged 25 and older. The sample was selected using Dynata, an online sample provider.

The National Institute on Retirement Security is a non-profit, non-partisan organization established to contribute to informed policymaking by fostering a deep understanding of the value of retirement security to employees, employers, and the economy as a whole. Located in Washington, D.C., NIRS membership includes financial services firms, employee benefit plans, trade associations, and other retirement service providers. More information is available at www.nirsonline.org.

SOURCE National Institute on Retirement Security