
Contents
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10.1 Introduction 10.1 Introduction
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10.2 The Retirement Policies at Twenty Companies 10.2 The Retirement Policies at Twenty Companies
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10.3 Retiree Welfare as a Company Objective 10.3 Retiree Welfare as a Company Objective
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10.4 Paternalism and the Design of Retirement Policy 10.4 Paternalism and the Design of Retirement Policy
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10.5 Policy Competitiveness 10.5 Policy Competitiveness
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10.6 The Role of Work and Retirement Incentives 10.6 The Role of Work and Retirement Incentives
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10.7 Retirement Incentives and Downsizing 10.7 Retirement Incentives and Downsizing
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10.8 Plans without Retirement Incentives 10.8 Plans without Retirement Incentives
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10.9 A Case Study 10.9 A Case Study
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10.10 Retirement Policy in Transition 10.10 Retirement Policy in Transition
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10.11 Summary and Discussion 10.11 Summary and Discussion
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References References
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10 The Motivations for Business Retirement Policies
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Published:September 2001
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Abstract
This chapter examines the motivations of firms in designing pension plans, and why these motivations have resulted in plans that have the effect of encouraging early retirement. The study is based on the experience of twenty large U.S. corporations. In particular, the analysis draws on a series of discussions about policy history and objectives with executives at each company, and a review of internal business documents relating to the design of the policies. The analysis identifies a number of objectives and motivations for the design of business retirement policies, including, in some cases, the desire for older workers to retire. In most cases, however, retirement incentives were either unintentional or secondary to the policy's central motivation. In general, the companies were much more concerned with providing competitive retirement policies (policies similar in structure and in value to those of their competitors in the labor market), and policies that adequately provided for the well-being of their retirees.
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