In this paper, we present an analysis of the Arkansas Teacher Retirement System (ATRS) pension plan and an empirical investigation of the behavioral response to that plan, as well as to a possible reform plan. We begin by describing the plan parameters and discussing the incentives these parameters create. We then estimate the effect of pension…

The study applies a pension acceptance model to acceptance of an early retirement pension bonus. Probabilities of acceptance range from .18 to .33. It also simulates acceptance behavior without the bonus, with probabilities of acceptance ranging from .11 to .30. (Author/CH)

Institutions must provide good counseling regarding retirement program benefits, since when in doubt about their financial position faculty members are inclined to remain employed. Colleges should consider offering nonfinancial incentives for early retirement as well as financial. (MLW)

Raising the age of mandatory retirement will retard the rate of promotional prospects only slightly in the economy. Larger delays will occur for top positions. Individual firms may experience greater delays depending on their rate of growth, previous retirement age, and willingness of older workers to remain on the job. (Author)