CRS publishes annual update on pension sponsorship, participation, and trends
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Summary
Accordingto the U.S. Census Bureau’s Current Population Survey (CPS), the numberof private-sector workers between the ages of 25 and 64 whose employersponsored a retirement plan fell from 53.5 million in 2007 to 52.3million in 2008. The number of private-sector workers who participatedin employer-sponsored retirement plans fell from 44.1 million in 2007to 42.9 million in 2008. The proportion of all 25 to 64 year-oldworkers in the private sector, whether employed full time or part-time,who participated in employer-sponsored retirement plans decreased from45.1% in 2007 to 43.6% in 2008. Between 2000 and 2008, the number ofprivate-sector workers between the ages of 25 and 64 who participatedin employer-sponsored retirement plans fell by 3.2 million, decliningfrom 46.1 million to 42.9 million. The percentage of workers whoparticipated in employer-sponsored retirement plans fell from 50.3% in2000 to 43.6% in 2008. A CRS analysis of the CPS indicates that, amongprivate-sector workers aged 25 to 64 who were employed year-round,full-time: • The percentage of workers whose employer sponsored aretirement plan was 59.9% in 2007 and 59.0% in 2008. • The percentageof workers who participated in employer-sponsored retirement plans was52.0% in 2007 and 51.1% in 2008. • Only 25.8% of workers at firms withfewer than 25 employees participated in an employer-sponsoredretirement plan in 2008, compared to 45.9% of workers at firms with 25to 99 employees and 63.6% at firms with 100 or more employees. • Amongthose who were employed year-round, full-time, 51.2% of men and 51.0%of women participated in an employer-sponsored retirement plan in 2008.• Only 43.3% of private-sector workers aged 25 to 34 and employedyear-round, full-time participated in an employer-sponsored retirementplan in 2008, compared to 50.9% of workers aged 35 to 44, 55.4% ofthose aged 45 to 54, and 56.6% of those aged 55 to 64. • Black,Hispanic, and other non-white workers were less likely to haveparticipated in an employer-sponsored retirement plan than white,non-Hispanic workers. Fifty-seven percent of white workers participatedin an employer- sponsored retirement plan in 2008, compared to 45.6% ofblack non-Hispanic workers, 30.3% of Hispanic workers, and 47.9% ofother non-white workers (mainly Asian-American and Native Americanworkers). • Only 27.7% of workers whose annual earnings were in thelowest quartile in 2008 (under $28,000) participated in a retirementplan at work, compared to 68.6% of workers whose earnings were in thetop quartile (above $65,000). The CPS Œ a survey of households Œ showsfewer private-sector workers participating in employer-sponsoredretirement plans than are reported by the National Compensation Survey(NCS), which is a survey of business establishments. According to theCPS, the proportion of private-sector workers aged 25 to 64 whoparticipated in an employer-sponsored retirement plan of some kind fellfrom 45.0% in 2005 to 43.6% in 2008. In contrast, NCS data indicatethat 50% of workers in the private sector participated inemployer-sponsored retirement plans in 2005 and 51% of private-sectorworkers participated in employer-sponsored retirement plans in 2008.