Post-Retirement Health Benefits Encourage Early Retirement
We find that retiree health coverage has its strongest effects at ages 62 and 63, resulting in a 3.7 percentage point (21.2 percent) increase in the probability of turnover at age 62 and a 5.1 percentage point (32.2 percent) increase in the probability of turnover at age 63; it has a more modest effects for individuals under the age of 62. A more generous employer contribution of 50 percent or more raises turnover by 1-3 percentage points at ages 56-61, by 5.9 percentage points (33.7 percent) at age 62, and by 6.9 percentage points (43.7 percent) at age 63. Overall, an employer contribution of 50 percent or more reduces the total number of person-years worked between ages 56 and 64 by 9.6 percent relative to no coverage.
Interesting finding.
Incentives matter.
Unfortunately, these are some of our most productive workers, and by giving them a use-it-or-lose-it benefit, employers are effectively imposing a tax on continued work. Would an employer offer a 20 year employee subsidized health care to age 65 if they were only 40 years old?
This is news? It should come as little surprise that giving people near retirement $10,000 or more in taxpayer-subsidized health benefits would encourage them to leave work. First of all: they don’t need to keep their jobs in order to retain the company health plan. Second of all, they don’t need to income to afford the $1,000 per month premium an individual policy would cost a 60-year old. Those that already qualify for Social Security are especially prone to retire if they have access to post-retirement health care. Society is losing productive members. Individuals are losing the positive effect of staying active. And taxpayers are picking up the tab for people not to work.
Yep I’m up for Season 2 although Kat say’s I can’t start a new team until I’ve eipntad the existing one = (Although I’m still hopeful I can convince her to come in with either a Goblin or Snottling team purely for amusement value.As for changes I’ll put a vote towards the Free Fan Factor option rules from Pg 34 of the LTB5.What are you thinking about the length of the next season? I know some folks went crazy with games at the start of the last one but I still think 6 months gives everybody a chance to get involved even if they can only play infrequently.[]Craig Reply:November 23rd, 2009 at 5:34 pmI dunno about 6 months it’s been pretty clear for a while of season one who the top four were going to be. 6 months by get to be a bit of a drag.[]gav Reply:November 23rd, 2009 at 9:25 pmI’m not so certain people will throw in with quite the same intensity we had at the start of Season 1 though where sometimes people fit in one or two games a week.Plus a longer season actually gives the people who don’t have the opportunity to play that often to get in some more games and get in the standings.[]
I couldn’t get the email link for the May Elders Shop Notes to lnoodwad the file properly and I was unable to get the file to lnoodwad from your web archive. Are you able to email me a copy of the PDF file? Thanks very much.Dana Young732 Ashley Lane NEThompson, ND 58278