CRS: Updated Report on Pension Sponsorship and Participation

The Congressional Research Service has updated its report titled “Pension Sponsorship and Participation:  Summary of Recent Trends” to incorporate recently released data from the Census Bureau’s March 2006 Current Population Survey.  A copy of the report is attached.

 

    According to the Census Bureau’s Current Population Survey (CPS), the number of private-sector workers between the ages of 25 and 64 whose employer sponsored a retirement plan fell from 53.1 million in 2004 to 52.5 million in 2005. The number of workers who participated in an employer-sponsored retirement plan fell from 43.3 million in 2004 to 43.1 million in 2005.  The percentage of 25 to 64-year-old workers in the private sector who participated in an employer-sponsored retirement plan declined from 46.3% in 2004 to 45.0% in 2005.

 

    A CRS analysis of the Current Population Survey indicates that, among private-sector workers 25 to 64 years old who were employed year-round, full-time in 2005:

 

*    The percentage of workers whose employer sponsored a retirement plan fell from 61.8% in 2004 to 59.7% in 2005.

*    The percentage of workers who participated in an employer-sponsored retirement plan declined from 53.4% in 2004 51.6% in 2005.

*    Only 25.3% of workers at firms with fewer than 25 employers participated in an employer-sponsored retirement plan in 2005, compared to 45.2% of workers at firms with 25 to 99 employees and 65.4% of workers at firms with 100 or more employees.

*    There was relatively little difference in retirement plan participation among men and women who were employed full-time: 51.4% of men and 52.0% of women participated in an employer-sponsored retirement plan in 2005.

*    Only 42.0% of private-sector workers 25 to 34 years old who were employed year-round, full-time participated in an employer-sponsored retirement plan in 2005, versus 55.2% of workers over age 35.

*    Black, Hispanic, and other non-white workers were less likely to have participated in an employer-sponsored retirement plan.  Fifty-seven percent of white workers participated in a company-sponsored retirement plan in 2005, compared to 46.5% of black non-Hispanic workers, 29.0% of Hispanic workers, and 48.8% of other non-white workers (mainly Asian-American and Native American workers).

*    Only 27.5% of workers whose earnings were in the lowest quartile in 2005 (those with earnings under $25,000) participated in a retirement plan at work, compared to 70.3% of workers whose earnings were in the top quartile (those with earnings above $60,000).

*    The percentage of part-year or part-time workers in the private sector whose employer sponsored a retirement plan was 39.9% in 2005, down from 41.5% in 2004.  The percentage of part-year or part-time workers in the private sector who participated in an employer sponsored retirement plan fell from 24.8% in 2004 to 24.4% in 2005.

Get it here.

Thanks to Patrick Purcell of the CRS.