E ighty-two percent of State and local government

 employees participating in defined benefit retirement

 plans were covered by early retirement provisions in

2007. Almost all workers (95 percent) were in plans with

disability retirement provisions, and more than half (56

percent) had portability provisions. Virtually all workers

participating in defined benefit plans had their retirement

benefits calculated on the basis of their preretirement

earnings. Ninety-three percent of participants were in plans

allowing newly hired employees to participate; the remainder

were in plans that are closed to new employees. Eighty-one

percent could begin their plan participation immediately upon

being hired. (See tables 1 and 2.)

This summary presents findings of the 2007 National

Compensation Survey (NCS) regarding detailed provisions

of retirement plans in State and local governments. The

survey was conducted by the Bureau of Labor Statistics.

Data on the incidence and provisions of selected benefit

plans for State and local government workers for September

2007 were published earlier this year. (This release can be

found at http://www.bls.gov/ncs/ebs/sp/ebsm0007.pdf.)

Defined benefit plans

Ninety percent of State and local government employees

participating in defined benefit plans were in State-sponsored

plans. Almost all defined benefit plan participants (96 percent)

in educational services were in State-sponsored plans,

compared with 81 percent in public administration. Among

occupational groups, the percentage of workers in plans

sponsored by local governments ranged from 3 percent

among teachers to 20 percent among protective service

occupations. (See table 3.)

Benefit amount and form of payment

The most common benefit formula was a flat percentage of

preretirement earnings per year of service, with most plans

not integrated with Social Security. Seventy-nine percent of

defined benefit plan participants were in plans that used

such a formula, and 15 percent were in plans that used a

formula designating a variable percentage per year of service.

Where a flat-percent-per-year-of-service formula applied, the

National Compensation Survey:

Retirement Benefits in State and Local

Governments in the United States, 2007

U.S. Department of Labor

U.S. Bureau of Labor Statistics

May 2008

Summary 08-03

median flat percent was 2 percent. For part-time and hospital

workers, however, it was lower: 1.77 and 1.75 percent,

respectively. (See tables 4, 5, and 6.)

Defined benefit plans have different definitions of

preretirement earnings. Fifty-six percent of defined benefit

plan participants were in plans that were based on a 3-year

period, about evenly split between plans that used 3

consecutive years during which earnings were the highest

and plans that used any 3 years during which earnings were

the highest. Twenty-two percent of defined benefit plan

participants were in plans that chose 5 years as a period on

the basis of which to calculate preretirement earnings. (See

table 7.)

Only 11 percent of defined benefit plan participants were

in plans imposing a maximum on the number of years of

service that could be used for calculating retirement benefits.

A median maximum number of years of service of 35 was

common; however, for protective service occupations and

production, transportation, and material moving occupations,

the median maximum was 30 years. (See table 8.)

Although defined benefit plans are designed to provide

a stream of monthly payments over a lifetime, 49 percent of

defined benefit plan participants could receive their benefit

in the form of a lump sum. Nonunion workers were in plans

offering the lump-sum option more frequently than union

workers (60 percent and 39 percent, respectively). Twentyone percent of all workers participating in retirement plans

could receive a full lump sum, and 28 percent could opt for a

partial lump sum with a reduced annuity. (See table 9.)

Requirements for normal and early retirement

Participants in defined benefit plans can receive full benefits

after they meet the plan’s normal retirement requirements,

which typically involve completing a service requirement.

One out of 4 participants could receive full benefits at any

age once a service requirement was met. In addition, an age

requirement for normal retirement was imposed on 56 percent

of defined benefit plan participants, while a sum-of-age-plus

service requirement was imposed on 19 percent. Thirteen

percent of defined benefit plan participants could retire at

age 55, but more than half of them had to have more than 30

years of service. Nine percent could retire at age 60; of those,
2

two-thirds had to have at least 10 years of service. Workers

in protective service occupations were more likely to be

eligible to retire with an unreduced benefit at age 55 and with

fewer than 30 years of service than were their counterparts

in professional and related occupations. (See tables 10 and

11.)

Eighty-two percent of participants in defined benefit plans

could retire early with a reduced benefit. Fourteen percent of

those eligible could retire at any age, but a service requirement

of 30 years was imposed on 8 percent of this group of

participants. Twenty-four percent could retire with a reduced

benefit prior to age 55, but frequently they had to fulfill a

service requirement of at least 10 years. (See tables 12 , 13,

and 14.)

Disability retirement and survivor benefits

Disability retirement benefits were available to 95 percent of

participants in defined benefit plans. For 71 percent of

workers, disability retirement could begin immediately.

Postretirement survivor benefits were available to nearly all

participants in defined benefit plans. The most prevalent

method of providing survivor benefits was a joint-andsurvivor annuity, which reduces the participant’s annuity

and provides the surviving spouse a percentage of that

annuity after the participant’s death. Preretirement survivor

benefits also were available to almost all participants (98

percent). The most common form of this provision was an

annuity equivalent to the joint-and-survivor benefit, and

the majority of participants with a preretirement survivor

annuity could choose the percentage of preretirement

earnings that the survivor annuity would equal. (See tables

15, 16, and 17.)

Vesting, portability, and purchase of service

credits

Vesting defines the number of years of service necessary to

earn an unforfeitable benefit under a retirement plan. Eightynine percent of defined benefit plan participants were in

plans with cliff vesting, meaning that the participants had

no vested rights to future benefits until they met a service

requirement, such as 5 years, at which point they were 100

percent vested. Other types of vesting requirements were

rare. (See table 18.)

Sixty-four percent of defined benefit plan participants

could begin receiving their vested benefits upon eligibility

for early retirement. Fifty-six percent of defined benefit plan

participants were in plans with portability provisions that

allowed them to transfer accumulated benefits. About half

of all participants in plans with portability provisions could

transfer both their service credits and assets, while about

one-third could transfer their service credits only. (See tables

19 and 20.)

State-sponsored plans allowed 83 percent of their

participants in defined benefit plans to purchase credits for

prior government service. This provision was available to 91

percent of teachers. (See table 21.)

Defined contribution plans

Thirty-two percent of all workers participating in defined

contribution plans were in savings and thrift plans, under

which employees may contribute a predetermined portion of

(usually pretax) earnings to an individual account, all or part

of which the employer matches. Seventy percent were in

money purchase plans, under which fixed employer

contributions, typically calculated as a percentage of

employee earnings, are allocated to individual employee

accounts. Some were enrolled in both of these types of plans.

Participation in such plans varied by employer and employee

characteristics. For example, only 18 percent of defined

contribution plan participants employed in educational

services were enrolled in savings and thrift plans, compared

with 50 percent of participants employed in hospitals.

Nonunion workers participated in savings and thrifts in

greater numbers than their union counterparts (36 percent,

as opposed to 25 percent). (See table 22.)

Seventy-one percent of workers were in plans with State

government sponsors, compared with 35 percent with local

government sponsors. (See table 23.)

Major provisions

Seventy-six percent of participants in selected defined

contribution plans were allowed to contribute to their plans

on a pretax basis. In the health care and social assistance

industry, 82 percent of participants could make pretax

contributions, compared with 73 percent in educational

services.

Sixty-five percent of participants were in plans allowing

transfers of contributions from plans with a previous

employer. Seventy-seven percent of union workers could

take advantage of this provision, compared with 57 percent

of nonunion workers. Sixty-two percent of defined

contribution plan participants had a choice of investment

for their own contributions, and 72 percent could decide

how their employers’ contributions would be invested. (See

table 24.)

On average, 53 percent of defined contribution plan

participants were in plans with immediate full vesting (a

nonforfeitable right to benefits) of employer contributions

(employee contributions are always fully vested). This

number varied significantly, however, across employee

groups. For example, only 28 percent of workers in

production, transportation, and material moving occupations

participating in selected defined contribution plans were

eligible for immediate full vesting, compared with 69 percent

of teachers. The incidence of immediate full vesting was

higher for State employees (66 percent) than for employees

in local governments (46 percent). These variations are due

in part to the types of defined contribution plan in which

workers participate.

Twenty-two percent of participants were in plans

permitting loans, and 24 percent were in plans allowing

withdrawals of contributions prior to retirement. Among
3

primary, secondary, and special education teachers, only 9

percent were in plans allowing loans and 13 percent were in

plans allowing withdrawals. (See table 24.)

Age and service requirements

Seventy-two percent of participants in selected defined

contribution plans imposed no age or service requirements

for participation. The remainder had to work for up to 12

months before becoming eligible. Eighty percent of plan

participants in public administration could take advantage

of immediate participation, compared with only 49 percent in

the health care and social assistance industry. (See table 25.)

Employer contributions to money purchase plans

Sixty-five percent of workers in money purchase plans had

their employers’ contributions calculated on the basis of a

fixed-percent-of-earnings formula, with a median contribution

of 6.75 percent for workers in plans with a fixed-percent-ofcontributions formula. Median employer contributions were

higher for full-time and nonunion workers than for part-time

and union workers (6.75 percent and 5.00 percent,

respectively.) (See table 26.)
4
5

Table of Contents

Defined benefit plans

Table 1. Summary of plan provisions 6

Table 2. Eligibility requirements 8

Table 3. Plan sponsor 10

Table 4. Traditional plan formula 12

Table 5. Integration with Social Security 14

Table 6. Terminal earnings formulas: Type and provisions 16

Table 7. Terminal earnings formula: Definition of terminal earnings 18

Table 8. Maximum benefit provisions 20

Table 9. Availability of lump-sum benefits at retirement 22

Table 10. Age and service requirements for normal retirement 24

Table 11. Selected age and service requirements for normal retirement 26

Table 12. Early retirement availability 28

Table 13. Selected age and service requirements for early retirement 30

Table 14. Early retirement reductions 32

Table 15. Disability retirement benefits 34

Table 16. Postretirement survivor benefits 36

Table 17. Preretirement survivor benefits 38

Table 18. Vesting requirements 40

Table 19. Provisions for early receipt of deferred vested benefits 42

Table 20. Portability provisions 44

Table 21. Purchase of credits for prior government service 46

Defined contribution plans

Table 22. Participation in types of plans with employer contributions 48

Table 23. Plan sponsor 50

Table 24. Selected defined contribution plans: Summary of provisions 52

Table 25. Selected defined contribution plans: Eligibility requirements 54

Table 26. Money purchase pension plans: Employer contributions 56

Technical Note 58

Table 1. Number of workers represented 61

Appendix A. Retirement Income Benefits 62
6

Table 1. Defined benefit plans: Summary of plan provisions, State and local government

workers, National Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics

Benefits

based on

earnings

Benefits

with

integrated

formula

Benefits

subject to

a

maximum

Early

retirement

benefits

available

Disability

retirement

benefits

available

Portability

provisions

All workers ................................................. 98 4 11 82 95 56

Worker characteristics

Management, professional, and related .... 98 4 11 86 95 57

Professional and related ........................ 98 3 11 87 96 58

Teachers ........................................... 98 1 ( ) 12 92 96 60

Primary, secondary, and special 

education school teachers ........... 98 1 ( ) 11 94 96 60

Service ...................................................... 98 5 14 75 95 55

Protective service .................................. 97 4 18 68 94 54

Sales and office ......................................... 98 4 8 80 95 55

Office and administrative support .......... 98 4 8 80 94 54

Natural resources, construction, and 

maintenance ............................................ 99 4 10 85 92 52

Production, transportation, and 

material moving ....................................... 97 1 ( ) 10 83 93 61

Full time ..................................................... 98 4 11 83 95 56

Part time .................................................... 99 7 13 78 95 56

Union ......................................................... 98 3 10 78 95 52

Nonunion ................................................... 98 5 11 87 95 61

Average wage less than $15 per hour2 ..... 97 3 10 86 94 58

Average wage $15 per hour or higher2 ..... 98 4 11 81 95 56

Average wage less than $24 per hour2 ..... 98 4 10 81 94 56

Average wage $24 per hour or higher2 ..... 99 4 12 84 95 57

Establishment characteristics

Education and health services .................. 98 3 12 87 96 56

Educational services ............................. 98 3 12 87 96 57

Elementary and secondary schools .. 98 2 12 89 96 57

Junior colleges, colleges, and

universities ....................................... 99 1 ( ) 12 79 95 56

Health care and social assistance ......... 97 6 1 ( ) 80 97 49

Hospitals ............................................ 99 1 ( ) 1 ( ) 80 96 46

Public administration ................................. 98 5 10 74 93 56

1 to 99 workers .......................................... 96 1 ( ) 7 86 94 61

1 to 49 workers ...................................... 96 1 ( ) 1 ( ) 84 93 58

50 to 99 workers .................................... 96 1 ( ) 1 ( ) 89 95 65

100 workers or more ................................. 98 4 11 82 95 56

100 to 499 workers ................................ 96 1 ( ) 11 86 93 56

500 workers or more ............................. 99 4 11 81 96 56

State government ...................................... 98 1 ( ) 6 77 93 55

Local government ...................................... 98 3 12 84 95 57

See footnotes at end of table.
7

Table 1. Defined benefit plans: Summary of plan provisions, State and local government

workers, National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics

Benefits

based on

earnings

Benefits

with

integrated

formula

Benefits

subject to

a

maximum

Early

retirement

benefits

available

Disability

retirement

benefits

available

Portability

provisions

Geographic areas

New England ............................................. 92 19 1 ( ) 51 76 54

Middle Atlantic ........................................... 100 1 ( ) 2 95 99 52

East North Central ..................................... 100 1 ( ) 32 91 96 49

West North Central .................................... 80 1 ( ) 1 ( ) 94 94 75

South Atlantic ............................................ 100 1 10 97 99 46

East South Central .................................... 100 1 ( ) 1 ( ) 71 100 1 ( )

West South Central ................................... 100 1 ( ) 6 88 100 80

Mountain .................................................... 100 – 1 ( ) 93 62 75

Pacific ........................................................ 100 8 3 52 98 59

1 These data do not meet publication criteria. 2 The wage breakouts are based on the average wage for

each occupation surveyed, which may include workers both

above and below the threshold. See the Technical Note for

more details.

NOTE: Dash indicates no workers in this category.
8

Table 2. Defined benefit plans: Eligibility requirements, State and local government workers,

National Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

Plan

participation

available to

new

employees

Available to new employees

Plan

participation

not available

to new

employees

With

minimum

age or

service

requirement

Service requirements No minimum

age or

service

requirement

Less than

12 months

More than

12 months

All workers ................................................. 100 93 12 5 6 81 7

Worker characteristics

Management, professional, and related .... 100 93 10 4 6 83 6

Professional and related ........................ 100 93 9 3 5 84 7

Teachers ........................................... 100 93 6 1 ( ) 4 87 7

Primary, secondary, and special 

education school teachers ........... 100 93 5 1 4 88 7

Service ...................................................... 100 92 10 4 6 82 8

Protective service .................................. 100 95 11 4 6 85 5

Sales and office ......................................... 100 93 18 9 8 75 7

Office and administrative support .......... 100 94 18 9 8 76 6

Natural resources, construction, and 

maintenance ............................................ 100 95 13 8 4 82 5

Production, transportation, and 

material moving ....................................... 100 89 17 7 9 72 11

Full time ..................................................... 100 94 12 5 6 82 6

Part time .................................................... 100 85 9 1 ( ) 6 76 15

Union ......................................................... 100 88 16 6 9 73 11

Nonunion ................................................... 100 98 8 4 3 90 2

Average wage less than $15 per hour2 ..... 100 93 8 4 3 85 7

Average wage $15 per hour or higher2 ..... 100 93 13 6 7 80 7

Average wage less than $24 per hour2 ..... 100 94 12 6 5 82 6

Average wage $24 per hour or higher2 ..... 100 92 12 4 7 81 7

Establishment characteristics

Education and health services .................. 100 93 7 2 5 85 7

Educational services ............................. 100 92 5 1 4 87 8

Elementary and secondary schools .. 100 91 5 1 ( ) 4 86 9

Junior colleges, colleges, and

universities ....................................... 100 96 7 1 ( ) 4 90 4

Health care and social assistance ......... 100 95 26 7 14 69 5

Hospitals ............................................ 100 93 28 8 13 66 7

Public administration ................................. 100 95 18 9 8 77 5

1 to 99 workers .......................................... 100 95 13 8 3 82 5

1 to 49 workers ...................................... 100 96 17 11 1 ( ) 78 1 ( )

50 to 99 workers .................................... 100 95 9 1 ( ) 3 86 1 ( )

100 workers or more ................................. 100 93 12 5 6 81 7

100 to 499 workers ................................ 100 93 14 5 8 79 7

500 workers or more ............................. 100 93 11 5 6 82 7

State government ...................................... 100 97 20 10 9 77 3

Local government ...................................... 100 92 9 4 5 83 8

See footnotes at end of table.
9

Table 2. Defined benefit plans: Eligibility requirements, State and local government workers,

National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

Plan

participation

available to

new

employees

Available to new employees

Plan

participation

not available

to new

employees

With

minimum

age or

service

requirement

Service requirements No minimum

age or

service

requirement

Less than

12 months

More than

12 months

Geographic areas

New England ............................................. 100 97 1 ( ) 1 ( ) 1 ( ) 95 1 ( )

Middle Atlantic ........................................... 100 70 30 1 ( ) 1 ( ) 39 30

East North Central ..................................... 100 88 1 ( ) 1 ( ) – 85 11

West North Central .................................... 100 95 1 ( ) 1 ( ) – 89 5

South Atlantic ............................................ 100 100 4 1 ( ) 1 ( ) 96 1 ( )

East South Central .................................... 100 100 1 ( ) 1 ( ) – 97 –

West South Central ................................... 100 98 11 1 ( ) 1 ( ) 87 1 ( )

Mountain .................................................... 100 100 1 ( ) 1 ( ) – 100 –

Pacific ........................................................ 100 96 26 1 ( ) 1 ( ) 70 3

1 These data do not meet publication criteria. 2 The wage breakouts are based on the average wage for each

occupation surveyed, which may include workers both above and below

the threshold. See the Technical Note for more details.

NOTE: Dash indicates no workers in this category. Because of rounding,

sums of individual items may not equal totals.
10

Table 3. Defined benefit plans: Plan sponsor,1 State and

local government workers, National Compensation

Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics

State

government

sponsor

Local

government

sponsor

All workers ................................................. 90 10

Worker characteristics

Management, professional, and related .... 93 7

Professional and related ........................ 94 6

Teachers ........................................... 97 3

Primary, secondary, and special 

education school teachers ........... 98 2 ( )

Service ...................................................... 84 16

Protective service .................................. 80 20

Sales and office ......................................... 87 13

Office and administrative support .......... 87 13

Natural resources, construction, and 

maintenance ............................................ 85 15

Production, transportation, and 

material moving ....................................... 81 19

Full time ..................................................... 90 10

Part time .................................................... 91 9

Union ......................................................... 86 14

Nonunion ................................................... 94 6

Average wage less than $15 per hour3 ..... 92 8

Average wage $15 per hour or higher3 ..... 89 11

Average wage less than $24 per hour3 ..... 89 11

Average wage $24 per hour or higher3 ..... 91 9

Establishment characteristics

Education and health services .................. 95 5

Educational services ............................. 96 4

Elementary and secondary schools .. 96 4

Junior colleges, colleges, and

universities ....................................... 97 3

Health care and social assistance ......... 86 14

Hospitals ............................................ 78 22

Public administration ................................. 81 19

1 to 99 workers .......................................... 95 2 ( )

1 to 49 workers ...................................... 96 4

50 to 99 workers .................................... 95 2 ( )

100 workers or more ................................. 89 11

100 to 499 workers ................................ 95 5

500 workers or more ............................. 87 13

State government ...................................... 100 2 ( )

Local government ...................................... 87 13

See footnotes at end of table.
11

Table 3. Defined benefit plans: Plan sponsor,1 State and

local government workers, National Compensation

Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics

State

government

sponsor

Local

government

sponsor

Geographic areas

New England ............................................. 80 20

Middle Atlantic ........................................... 75 25

East North Central ..................................... 91 9

West North Central .................................... 97 2 ( )

South Atlantic ............................................ 93 7

East South Central .................................... 95 2 ( )

West South Central ................................... 95 2 ( )

Mountain .................................................... 94 6

Pacific ........................................................ 89 11

1 Based on the sponsorship of the

benefit plan rather than the affiliation of

the employees participating. For

example, many local school district

workers belong to State-sponsored

retirement plans. State-sponsored

benefits can be partially or totally State

funded.

2 These data do not meet

publication criteria. 3 The wage breakouts are based on

the average wage for each occupation

surveyed, which may include workers

both above and below the threshold. 

See the Technical Note for more details.
12

Table 4. Defined benefit plans: Traditional plan formula, State and local

government workers, National Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Traditional

Traditional plan formula

Percent of

terminal

earnings

Percent of

career

earnings

Dollar

amount

formula

All workers ................................................. 100 96 2 1 ( )

Worker characteristics

Management, professional, and related .... 100 97 1 1 ( )

Professional and related ........................ 100 97 1 1 ( )

Teachers ........................................... 100 97 1 ( ) 1 ( )

Primary, secondary, and special 

education school teachers ........... 100 97 2 ( ) 1 ( )

Service ...................................................... 99 95 3 1

Protective service .................................. 99 92 5 1 ( )

Sales and office ......................................... 99 97 2 1 ( )

Office and administrative support .......... 99 97 2 1 ( )

Natural resources, construction, and 

maintenance ............................................ 100 97 1 ( ) 1 ( )

Production, transportation, and 

material moving ....................................... 100 96 1 ( ) 1 ( )

Full time ..................................................... 100 96 2 1 ( )

Part time .................................................... 100 99 1 ( ) 1 ( )

Union ......................................................... 99 96 2 1 ( )

Nonunion ................................................... 100 96 1 ( ) 1 ( )

Average wage less than $15 per hour3 ..... 99 96 1 1 ( )

Average wage $15 per hour or higher3 ..... 100 97 2 1 ( )

Average wage less than $24 per hour3 ..... 99 96 2 1 ( )

Average wage $24 per hour or higher3 ..... 100 97 2 1 ( )

Establishment characteristics

Education and health services .................. 100 97 1 ( ) 1 ( )

Educational services ............................. 100 97 1 ( ) 1 ( )

Elementary and secondary schools .. 100 98 2 ( ) 1 ( )

Junior colleges, colleges, and

universities ....................................... 100 96 1 ( ) 1 ( )

Health care and social assistance ......... 98 93 1 () –

Hospitals ............................................ 99 96 1 () –

Public administration ................................. 99 95 3 1 ( )

1 to 99 workers .......................................... 99 95 1 ( ) 1 ( )

1 to 49 workers ...................................... 99 95 1 ( ) 1 ( )

50 to 99 workers .................................... 100 96 – –

100 workers or more ................................. 100 96 2 1 ( )

100 to 499 workers ................................ 99 95 1 ( ) 1 ( )

500 workers or more ............................. 100 97 2 1 ( )

State government ...................................... 99 93 5 1 ( )

Local government ...................................... 100 98 1 1 ( )

See footnotes at end of table.
13

Table 4. Defined benefit plans: Traditional plan formula, State and local

government workers, National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Traditional

Traditional plan formula

Percent of

terminal

earnings

Percent of

career

earnings

Dollar

amount

formula

Geographic areas

New England ............................................. 100 92 1 ( ) 1 ( )

Middle Atlantic ........................................... 100 95 1 ( ) 1 ( )

East North Central ..................................... 100 99 1 ( ) 1 ( )

West North Central .................................... 95 80 1 ( ) 1 ( )

South Atlantic ............................................ 100 98 2 1 ( )

East South Central .................................... 100 99 1 () –

West South Central ................................... 100 99 1 () –

Mountain .................................................... 100 100 – –

Pacific ........................................................ 100 97 1 ( ) 1 ( )

1 These data do not meet publication criteria. 2 Less than 0.5 percent. 3 The wage breakouts are based on the average

wage for each occupation surveyed, which may

include workers both above and below the threshold. 

See the Technical Note for more details.

NOTE: Dash indicates no workers in this category.

Because of rounding, sums of individual items may

not equal totals.
14

Table 5. Defined benefit plans: Integration with Social Security, State and local

government workers, National Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With

integrated

formula

Type of integrated

formula Without

integrated

formula

Not

covered

under

Social

Security

Social

Security

breakpoint1

Offset by

Social

Security2

All workers ................................................. 100 4 2 3 79 17

Worker characteristics

Management, professional, and related .... 100 4 2 2 77 20

Professional and related ........................ 100 3 2 2 76 20

Teachers ........................................... 100 3 ( ) 3 ( ) 3 ( ) 72 26

Primary, secondary, and special 

education school teachers ........... 100 3 ( ) 3 ( ) – 72 27

Service ...................................................... 100 5 3 ( ) 3 77 18

Protective service .................................. 100 4 3 ( ) 3 ( ) 73 23

Sales and office ......................................... 100 4 2 2 84 13

Office and administrative support .......... 100 4 2 2 83 13

Natural resources, construction, and 

maintenance ............................................ 100 4 3 ( ) 2 87 3 ( )

Production, transportation, and 

material moving ....................................... 100 3 ( ) 3 ( ) 3 ( ) 84 11

Full time ..................................................... 100 4 2 2 79 18

Part time .................................................... 100 7 3 ( ) 3 ( ) 80 14

Union ......................................................... 100 3 3 ( ) 3 74 23

Nonunion ................................................... 100 5 3 2 84 12

Average wage less than $15 per hour4 ..... 100 3 2 2 86 11

Average wage $15 per hour or higher4 ..... 100 4 1 3 76 20

Average wage less than $24 per hour4 ..... 100 4 2 3 83 12

Average wage $24 per hour or higher4 ..... 100 4 1 2 73 23

Establishment characteristics

Education and health services .................. 100 3 3 ( ) 2 78 19

Educational services ............................. 100 3 3 ( ) 2 77 20

Elementary and secondary schools .. 100 2 3 ( ) 1 77 21

Junior colleges, colleges, and

universities ....................................... 100 3 ( ) 3 ( ) 3 ( ) 77 14

Health care and social assistance ......... 100 6 3 ( ) 3 ( ) 84 10

Hospitals ............................................ 100 3 ( ) 3 ( ) 3 ( ) 82 10

Public administration ................................. 100 5 2 4 78 17

1 to 99 workers .......................................... 100 3 ( ) 3 ( ) 2 85 3 ( )

1 to 49 workers ...................................... 100 3 ( ) 3 ( ) 3 91 3 ( )

50 to 99 workers .................................... 100 3 ( ) 3 ( ) 3 ( ) 80 18

100 workers or more ................................. 100 4 2 3 78 18

100 to 499 workers ................................ 100 3 ( ) 3 ( ) 3 ( ) 79 19

500 workers or more ............................. 100 4 2 3 78 18

State government ...................................... 100 3 ( ) 3 ( ) 3 ( ) 82 13

Local government ...................................... 100 3 1 2 78 19

See footnotes at end of table.
15

Table 5. Defined benefit plans: Integration with Social Security, State and local

government workers, National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With

integrated

formula

Type of integrated

formula Without

integrated

formula

Not

covered

under

Social

Security

Social

Security

breakpoint1

Offset by

Social

Security2

Geographic areas

New England ............................................. 100 19 3 ( ) 18 49 33

Middle Atlantic ........................................... 100 3 ( ) 3 ( ) 3 ( ) 69 30

East North Central ..................................... 100 3 () – 3 ( ) 97 3 ( )

West North Central .................................... 100 3 ( ) 3 ( ) 3 ( ) 84 15

South Atlantic ............................................ 100 1 1 3 ( ) 86 13

East South Central .................................... 100 3 ( ) 3 ( ) 3 ( ) 78 3 ( )

West South Central ................................... 100 3 ( ) 3 ( ) 3 ( ) 89 3 ( )

Mountain .................................................... 100 – – – 64 3 ( )

Pacific ........................................................ 100 8 3 ( ) 7 68 24

1 Formula applies lower benefit rate to earnings subject to

FICA (Social Security) taxes. 2 Benefit as calculated by formula is reduced by portion of

primary Social Security payment. 3 These data do not meet publication criteria. 4 The wage breakouts are based on the average wage for

each occupation surveyed, which may include workers both

above and below the threshold. See the Technical Note for more

details.

NOTE: Dash indicates no workers in this category. Because of

rounding, sums of individual items may not equal totals.
16

Table 6. Terminal earnings formulas: Type and provisions, State and local government workers, National

Compensation Survey, 2007

(All workers participating in defined benefit plans with a terminal earnings formula = 100 percent)

Characteristics Total

Flat

percent

per year

of service

Flat percent per year of service

Percent

per year

varies

Percent per year

varies by

Other 10th

percentile

25th

percentile

50th

percentile

(median)

75th

percentile

90th

percentile

Service Earnings

All workers ................................................. 100 79 1.10 1.67 2.00 2.30 2.60 15 13 1 ( ) 1 ( )

Worker characteristics

Management, professional, and related .... 100 83 1.10 1.67 2.00 2.30 2.50 12 10 1 ( ) 1 ( )

Professional and related ........................ 100 84 1.10 1.67 2.00 2.30 2.50 11 10 1 ( ) 1 ( )

Teachers ........................................... 100 89 1.10 1.67 2.00 2.30 2.50 8 6 1 ( ) 1 ( )

Primary, secondary, and special 

education school teachers ........... 100 89 1.10 1.67 2.00 2.30 2.50 7 6 1 ( ) 1 ( )

Service ...................................................... 100 73 1.25 1.70 2.00 2.50 3.00 19 18 1 ( ) 1 ( )

Protective service .................................. 100 75 1.67 2.00 2.01 2.55 3.00 18 16 1 () 7

Sales and office ......................................... 100 72 1.10 1.67 1.85 2.01 2.50 19 17 1 1 ( )

Office and administrative support .......... 100 72 1.10 1.67 2.00 2.20 2.50 19 17 1 1 ( )

Natural resources, construction, and 

maintenance ............................................ 100 73 1.40 1.75 2.00 2.20 3.00 19 18 1 ( ) 1 ( )

Production, transportation, and 

material moving ....................................... 100 74 1.10 1.67 2.00 2.20 2.50 20 19 1 ( ) 1 ( )

Full time ..................................................... 100 79 1.10 1.67 2.00 2.30 2.75 14 13 1 ( ) 1 ( )

Part time .................................................... 100 72 1.10 1.10 1.77 2.01 2.50 22 21 1 ( ) 1 ( )

Union ......................................................... 100 77 1.10 1.50 2.00 2.20 3.00 18 18 1 () 4

Nonunion ................................................... 100 80 1.40 1.75 2.00 2.30 2.50 11 9 2 1 ( )

Average wage less than $15 per hour2 ..... 100 75 1.15 1.70 2.00 2.30 3.00 15 13 1 ( ) 1 ( )

Average wage $15 per hour or higher2 ..... 100 80 1.10 1.67 2.00 2.30 2.50 15 13 1 6

Average wage less than $24 per hour2 ..... 100 75 1.10 1.67 2.00 2.30 2.80 17 15 1 ( ) 1 ( )

Average wage $24 per hour or higher2 ..... 100 82 1.10 1.67 2.00 2.30 2.50 13 11 1 () 5

Establishment characteristics

Education and health services .................. 100 82 1.10 1.50 2.00 2.30 2.50 12 11 1 ( ) 1 ( )

Educational services ............................. 100 84 1.10 1.50 2.00 2.30 2.50 11 10 1 ( ) 1 ( )

Elementary and secondary schools .. 100 85 1.10 1.61 2.00 2.30 2.50 11 10 1 ( ) 1 ( )

Junior colleges, colleges, and

universities ....................................... 100 78 1.10 1.50 2.00 2.20 2.35 11 9 1 ( ) 1 ( )

Health care and social assistance ......... 100 63 1.10 1.40 1.75 2.00 2.30 23 18 1 ( ) 1 ( )

Hospitals ............................................ 100 59 1.10 1.39 1.75 2.00 2.30 26 20 1 ( ) 1 ( )

Public administration ................................. 100 73 1.40 1.70 2.00 2.40 3.00 19 17 2 8

1 to 99 workers .......................................... 100 77 1.40 1.67 1.85 2.20 2.50 13 1 ( ) 1 ( ) 1 ( )

1 to 49 workers ...................................... 100 73 1.50 1.74 2.00 2.20 2.50 1 ( ) 1 ( ) 1 ( ) 1 ( )

50 to 99 workers .................................... 100 81 1.40 1.67 1.82 2.01 2.50 1 ( ) 1 ( ) 1 ( ) 1 ( )

100 workers or more ................................. 100 79 1.10 1.67 2.00 2.30 2.70 15 13 1 1 ( )

100 to 499 workers ................................ 100 77 1.25 1.70 2.00 2.20 2.50 15 14 1 ( ) 1 ( )

500 workers or more ............................. 100 79 1.10 1.67 2.00 2.30 3.00 15 13 2 1 ( )

State government ...................................... 100 79 1.10 1.67 2.00 2.20 2.50 14 12 1 ( ) 1 ( )

Local government ...................................... 100 79 1.10 1.67 2.00 2.30 2.70 15 14 1 1 ( )

See footnotes at end of table.
17

Table 6. Terminal earnings formulas: Type and provisions, State and local government workers, National

Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans with a terminal earnings formula = 100 percent)

Characteristics Total

Flat

percent

per year

of service

Flat percent per year of service

Percent

per year

varies

Percent per year

varies by

Other 10th

percentile

25th

percentile

50th

percentile

(median)

75th

percentile

90th

percentile

Service Earnings

Geographic areas

New England ............................................. 100 78 1.50 1.50 1.67 2.00 2.00 9 8 1 ( ) 14

Middle Atlantic ........................................... 100 54 2.00 2.00 2.00 2.50 2.50 44 44 1 ( ) 1 ( )

East North Central ..................................... 100 69 1.10 1.50 1.77 2.20 2.50 31 31 – 1 ( )

West North Central .................................... 100 99 1.61 1.70 2.00 2.00 2.50 1 ( ) 1 () – 1 ( )

South Atlantic ............................................ 100 97 1.40 1.75 1.85 3.00 3.00 2 1 ( ) 1 () 1

West South Central ................................... 100 98 2.00 2.30 2.30 2.30 2.50 1 ( ) 1 ( ) 1 ( ) 1 ( )

Mountain .................................................... 100 48 1.67 2.00 2.35 2.50 2.50 1 ( ) 1 () – 1 ( )

Pacific ........................................................ 100 93 1.10 1.10 1.10 2.00 2.00 1 ( ) 1 ( ) 1 () 6

1 These data do not meet publication criteria. 2 The wage breakouts are based on the average wage for each occupation

surveyed, which may include workers both above and below the threshold. See the

Technical Note for more details.

NOTE: Dash indicates no workers in this category. Because of rounding, sums of

individual items may not equal totals.
18

Table 7. Terminal earnings formulas: Definition of terminal earnings, State and local government workers,

National Compensation Survey, 2007

(All workers participating in defined benefit plans with a terminal earnings formula = 100 percent)

Characteristics Total One year

Three years Five years

Other

period Total High 3

High

consecutive

3

Total High 5

High

consecutive

5

All workers ................................................. 100 6 56 27 27 22 15 7 16

Worker characteristics

Management, professional, and related .... 100 5 56 27 27 24 17 7 15

Professional and related ........................ 100 4 57 27 27 24 17 7 15

Teachers ........................................... 100 1 59 27 31 26 19 7 15

Primary, secondary, and special 

education school teachers ........... 100 1 57 25 30 27 21 6 15

Service ...................................................... 100 9 55 25 28 21 15 7 15

Protective service .................................. 100 9 58 26 30 18 12 6 14

Sales and office ......................................... 100 9 54 28 23 19 12 7 19

Office and administrative support .......... 100 9 54 28 24 19 12 7 18

Natural resources, construction, and 

maintenance ............................................ 100 5 55 26 25 19 13 6 22

Production, transportation, and 

material moving ....................................... 100 5 58 27 30 20 13 7 16

Full time ..................................................... 100 6 55 27 26 23 16 7 16

Part time .................................................... 100 1 ( ) 66 27 36 15 6 9 9

Union ......................................................... 100 9 65 29 33 18 9 9 8

Nonunion ................................................... 100 2 46 24 19 27 22 6 24

Average wage less than $15 per hour2 ..... 100 3 49 26 21 26 19 7 22

Average wage $15 per hour or higher2 ..... 100 7 58 27 28 21 14 7 14

Average wage less than $24 per hour2 ..... 100 7 54 29 23 22 15 7 18

Average wage $24 per hour or higher2 ..... 100 5 58 25 30 23 16 8 14

Establishment characteristics

Education and health services .................. 100 5 54 25 27 26 18 7 15

Educational services ............................. 100 5 53 24 28 26 20 7 16

Elementary and secondary schools .. 100 1 ( ) 53 23 28 27 21 6 15

Junior colleges, colleges, and

universities ....................................... 100 1 ( ) 54 27 25 21 1 ( ) 1 ( ) 1 ( )

Health care and social assistance ......... 100 8 61 35 21 19 1 ( ) 11 1 ( )

Hospitals ............................................ 100 7 58 30 20 22 1 ( ) 1 ( ) 1 ( )

Public administration ................................. 100 8 60 30 26 18 11 7 14

1 to 99 workers .......................................... 100 3 57 34 21 20 11 9 21

1 to 49 workers ...................................... 100 1 ( ) 53 26 25 16 1 ( ) 9 28

50 to 99 workers .................................... 100 1 ( ) 60 42 18 23 14 1 ( ) 1 ( )

100 workers or more ................................. 100 6 56 26 27 23 16 7 15

100 to 499 workers ................................ 100 1 ( ) 60 30 27 20 11 8 17

500 workers or more ............................. 100 7 54 25 27 24 17 6 15

State government ...................................... 100 9 56 31 24 19 11 7 17

Local government ...................................... 100 5 56 26 27 24 17 7 16

See footnotes at end of table.
19

Table 7. Terminal earnings formulas: Definition of terminal earnings, State and local government workers,

National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans with a terminal earnings formula = 100 percent)

Characteristics Total One year

Three years Five years

Other

period Total High 3

High

consecutive

3

Total High 5

High

consecutive

5

Geographic areas

New England ............................................. 100 1 ( ) 97 38 59 1 () – 1 () –

Middle Atlantic ........................................... 100 1 ( ) 98 35 63 1 ( ) 1 ( ) 1 ( ) 1 ( )

East North Central ..................................... 100 3 55 44 11 14 1 ( ) 3 28

West North Central .................................... 100 1 ( ) 70 60 10 29 9 1 ( ) 1 ( )

South Atlantic ............................................ 100 – 31 12 19 34 32 1 ( ) 35

East South Central .................................... 100 1 ( ) 1 ( ) 1 ( ) 1 ( ) 19 1 ( ) 1 ( ) 1 ( )

West South Central ................................... 100 1 ( ) 30 20 8 64 59 1 () 5

Mountain .................................................... 100 1 ( ) 94 11 68 1 ( ) 1 ( ) 1 () –

Pacific ........................................................ 100 32 46 1 ( ) 26 17 1 ( ) 16 5

1 These data do not meet publication criteria. 2 The wage breakouts are based on the average wage for each occupation

surveyed, which may include workers both above and below the threshold. See the

Technical Note for more details.

NOTE: Dash indicates no workers in this category. Because of rounding, sums of

individual items may not equal totals.
20

Table 8. Defined benefit plans: Maximum benefit provisions, State and local government workers, National

Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

Subject to

maximum

years of

credited

service

Maximum years of credited service Not subject

to

maximum

years of

credited

service

Not

10th determinable

percentile

25th

percentile

50th

percentile

(median)

75th

percentile

90th

percentile

All workers ................................................. 100 11 30 30 35 40 40 86 3

Worker characteristics

Management, professional, and related .... 100 11 30 34 35 40 40 86 3

Professional and related ........................ 100 11 30 34 35 40 40 86 3

Teachers ........................................... 100 12 30 34 34 40 40 87 1 ( )

Primary, secondary, and special 

education school teachers ........... 100 11 30 34 34 40 40 87 1 ( )

Service ...................................................... 100 14 25 30 30 37 40 83 3

Protective service .................................. 100 18 25 28 30 35 40 80 1 ( )

Sales and office ......................................... 100 8 30 34 35 40 40 89 3

Office and administrative support .......... 100 8 30 34 36 40 40 89 4

Natural resources, construction, and 

maintenance ............................................ 100 10 30 35 35 40 40 87 1 ( )

Production, transportation, and 

material moving ....................................... 100 10 30 30 30 40 40 83 1 ( )

Full time ..................................................... 100 11 30 30 35 40 40 86 3

Part time .................................................... 100 13 30 30 35 40 40 84 1 ( )

Union ......................................................... 100 10 30 30 34 35 40 88 2

Nonunion ................................................... 100 11 30 34 35 40 40 84 5

Average wage less than $15 per hour2 ..... 100 10 30 30 35 40 40 84 6

Average wage $15 per hour or higher2 ..... 100 11 30 30 34 40 40 87 2

Average wage less than $24 per hour2 ..... 100 10 30 30 35 40 40 86 4

Average wage $24 per hour or higher2 ..... 100 12 30 30 34 40 40 87 2

Establishment characteristics

Education and health services .................. 100 12 30 30 35 40 40 85 1 ( )

Educational services ............................. 100 12 30 34 35 40 40 85 1 ( )

Elementary and secondary schools .. 100 12 30 34 34 40 40 85 1 ( )

Junior colleges, colleges, and

universities ....................................... 100 12 30 35 36 40 40 84 1 ( )

Health care and social assistance ......... 100 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 85 1 ( )

Hospitals ............................................ 100 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 81 1 ( )

Public administration ................................. 100 10 25 30 34 37 40 87 3

1 to 99 workers .......................................... 100 7 30 34 35 40 40 87 1 ( )

1 to 49 workers ...................................... 100 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 93 1 ( )

50 to 99 workers .................................... 100 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 82 1 ( )

100 workers or more ................................. 100 11 30 30 35 40 40 86 3

100 to 499 workers ................................ 100 11 30 34 35 40 40 85 4

500 workers or more ............................. 100 11 27 30 34 40 40 86 3

State government ...................................... 100 6 25 35 35 40 40 87 6

Local government ...................................... 100 12 30 30 34 40 40 86 1 ( )

See footnotes at end of table.
21

Table 8. Defined benefit plans: Maximum benefit provisions, State and local government workers, National

Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

Subject to

maximum

years of

credited

service

Maximum years of credited service Not subject

to

maximum

years of

credited

service

Not

10th determinable

percentile

25th

percentile

50th

percentile

(median)

75th

percentile

90th

percentile

Geographic areas

New England ............................................. 100 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 91 9

Middle Atlantic ........................................... 100 2 30 30 30 30 30 97 1 ( )

East North Central ..................................... 100 32 30 30 34 40 40 62 1 ( )

West North Central .................................... 100 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 65 1 ( )

South Atlantic ............................................ 100 10 25 28 40 40 40 89 1 ( )

East South Central .................................... 100 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 92 –

West South Central ................................... 100 6 30 30 30 30 30 92 1 ( )

Mountain .................................................... 100 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 1 ( ) 78 6

Pacific ........................................................ 100 3 30 30 30 30 33 96 1 ( )

1 These data do not meet publication criteria. 2 The wage breakouts are based on the average wage for each occupation

surveyed, which may include workers both above and below the threshold. See the

Technical Note for more details.

NOTE: Dash indicates no workers in this category. Because of rounding, sums of

individual items may not equal totals.
22

Table 9. Defined benefit plans: Availablity of lump-sum benefits at retirement, State and local

government workers, National Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With lump

sum

available

Type of lump sum

available

No lump sum

available

Not

Full lump determinable

sum

available

Partial lump

sum with

reduced

annuity

All workers ................................................. 100 49 21 28 48 3

Worker characteristics

Management, professional, and related .... 100 52 21 31 45 3

Professional and related ........................ 100 53 20 32 45 3

Teachers ........................................... 100 58 20 37 40 1 ( )

Primary, secondary, and special 

education school teachers ........... 100 58 21 37 39 1 ( )

Service ...................................................... 100 44 20 23 51 4

Protective service .................................. 100 43 21 21 50 7

Sales and office ......................................... 100 46 21 24 51 3

Office and administrative support .......... 100 47 22 25 50 3

Natural resources, construction, and 

maintenance ............................................ 100 43 20 22 50 7

Production, transportation, and 

material moving ....................................... 100 42 17 25 54 1 ( )

Full time ..................................................... 100 50 21 28 47 3

Part time .................................................... 100 40 14 26 55 1 ( )

Union ......................................................... 100 39 20 18 58 4

Nonunion ................................................... 100 60 21 38 37 3

Average wage less than $15 per hour2 ..... 100 53 22 30 45 3

Average wage $15 per hour or higher2 ..... 100 48 20 27 49 4

Average wage less than $24 per hour2 ..... 100 48 21 26 48 4

Average wage $24 per hour or higher2 ..... 100 50 20 29 47 3

Establishment characteristics

Education and health services .................. 100 53 21 32 44 1 ( )

Educational services ............................. 100 54 22 33 43 1 ( )

Elementary and secondary schools .. 100 54 20 33 44 1 ( )

Junior colleges, colleges, and

universities ....................................... 100 57 29 28 42 1 ( )

Health care and social assistance ......... 100 40 13 26 54 1 ( )

Hospitals ............................................ 100 37 1 ( ) 21 61 1 ( )

Public administration ................................. 100 42 20 21 53 5

1 to 99 workers .......................................... 100 47 18 30 48 1 ( )

1 to 49 workers ...................................... 100 49 20 29 45 1 ( )

50 to 99 workers .................................... 100 45 16 30 50 1 ( )

100 workers or more ................................. 100 49 21 28 48 3

100 to 499 workers ................................ 100 46 19 27 50 1 ( )

500 workers or more ............................. 100 50 22 28 47 3

State government ...................................... 100 50 22 27 47 3

Local government ...................................... 100 49 20 28 48 4

See footnotes at end of table.
23

Table 9. Defined benefit plans: Availablity of lump-sum benefits at retirement, State and local

government workers, National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With lump

sum

available

Type of lump sum

available

No lump sum

available

Not

Full lump determinable

sum

available

Partial lump

sum with

reduced

annuity

Geographic areas

New England ............................................. 100 37 1 ( ) 25 45 1 ( )

Middle Atlantic ........................................... 100 8 2 1 ( ) 92 1 ( )

East North Central ..................................... 100 40 10 30 59 1 ( )

West North Central .................................... 100 48 1 ( ) 45 52 1 ( )

South Atlantic ............................................ 100 61 47 14 37 2

East South Central .................................... 100 62 1 ( ) 1 ( ) 1 ( ) 1 ( )

West South Central ................................... 100 76 1 ( ) 71 23 1 ( )

Mountain .................................................... 100 54 22 1 ( ) 21 1 ( )

Pacific ........................................................ 100 54 25 29 45 1 ( )

1 These data do not meet publication criteria. 2 The wage breakouts are based on the average wage for each

occupation surveyed, which may include workers both above and

below the threshold. See the Technical Note for more details.

NOTE: Because of rounding, sums of individual items may not equal

totals.
24

Table 10. Defined benefit plans: Age and service requirements for normal

retirement,1 State and local government workers, National Compensation

Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With a

minimum

service

requirement

only

With a

minimum age

requirement

With minimum

sum-of-age-plus

service

requirement

All workers ................................................. 100 25 56 19

Worker characteristics

Management, professional, and related .... 100 25 55 20

Professional and related ........................ 100 25 54 21

Teachers ........................................... 100 25 53 22

Primary, secondary, and special 

education school teachers ........... 100 24 52 24

Service ...................................................... 100 23 61 16

Protective service .................................. 100 25 65 10

Sales and office ......................................... 100 26 56 18

Office and administrative support .......... 100 27 56 18

Natural resources, construction, and 

maintenance ............................................ 100 27 53 20

Production, transportation, and 

material moving ....................................... 100 19 63 18

Full time ..................................................... 100 25 56 19

Part time .................................................... 100 23 63 15

Union ......................................................... 100 23 69 7

Nonunion ................................................... 100 26 43 31

Average wage less than $15 per hour2 ..... 100 25 47 28

Average wage $15 per hour or higher2 ..... 100 24 59 16

Average wage less than $24 per hour2 ..... 100 25 54 21

Average wage $24 per hour or higher2 ..... 100 24 59 17

Establishment characteristics

Education and health services .................. 100 24 53 23

Educational services ............................. 100 24 53 23

Elementary and secondary schools .. 100 22 54 24

Junior colleges, colleges, and

universities ....................................... 100 32 51 18

Health care and social assistance ......... 100 27 54 20

Hospitals ............................................ 100 28 50 22

Public administration ................................. 100 26 62 13

1 to 99 workers .......................................... 100 27 45 28

1 to 49 workers ...................................... 100 25 48 27

50 to 99 workers .................................... 100 28 43 29

100 workers or more ................................. 100 24 58 18

100 to 499 workers ................................ 100 28 50 22

500 workers or more ............................. 100 23 60 17

State government ...................................... 100 27 54 19

Local government ...................................... 100 24 57 19

See footnotes at end of table.
25

Table 10. Defined benefit plans: Age and service requirements for normal

retirement,1 State and local government workers, National Compensation

Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With a

minimum

service

requirement

only

With a

minimum age

requirement

With minimum

sum-of-age-plus

service

requirement

Geographic areas

New England ............................................. 100 56 43 3 ( )

Middle Atlantic ........................................... 100 16 84 –

East North Central ..................................... 100 24 62 14

West North Central .................................... 100 3 ( ) 26 74

South Atlantic ............................................ 100 11 86 3 ( )

East South Central .................................... 100 75 3 ( ) 3 ( )

West South Central ................................... 100 15 3 ( ) 77

Mountain .................................................... 100 3 ( ) 22 3 ( )

Pacific ........................................................ 100 23 77 3 ( )

1 Normal retirement is defined as the point at which the

participant could retire and immediately receive all accrued

benefits by virtue of service and earnings, without any

reduction due to age. Typically, plans specify a minimum

length-of-service requirement and often a minimum age

requirement as well. 2 The wage breakouts are based on the average wage

for each occupation surveyed, which may include workers

both above and below the threshold. See the Technical

Note for more details. 3 These data do not meet publication criteria.

NOTE: Dash indicates no workers in this category.

Because of rounding, sums of individual items may not

equal totals.
26

Table 11. Defined benefit plans: Selected age and service requirements1 for normal retirement,2

State and local government workers, National Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics

Age 55 Age 60 Age 62 Age 65

Less than

30 years

30 years

or more

Less than

10 years

10 years

or more

Less than

10 years

Less than

10 years

10 years

or more

All workers ................................................. 5 8 3 6 5 4 1

Worker characteristics

Management, professional, and related .... 3 9 2 7 4 4 1

Professional and related ........................ 2 9 2 7 4 4 1

Teachers ........................................... 3 () 9 4 () 8 4 4 ( ) 4 ( )

Primary, secondary, and special 

education school teachers ........... 4 () 8 4 () 9 4 ( ) 4 ( ) 4 ( )

Service ...................................................... 10 5 4 4 7 3 4 ( )

Protective service .................................. 13 3 4 ( ) 4 () 6 4 ( ) 4 ( )

Sales and office ......................................... 5 8 3 4 () 6 6 1

Office and administrative support .......... 5 8 3 4 () 6 6 1

Natural resources, construction, and 

maintenance ............................................ 5 8 4 7 5 7 4 ( )

Production, transportation, and 

material moving ....................................... 7 10 4 () 6 9 4 ( ) 4 ( )

Full time ..................................................... 4 8 3 6 5 4 1

Part time .................................................... 8 7 4 () 3 6 4 4 ( )

Union ......................................................... 7 12 2 3 9 3 2

Nonunion ................................................... 2 4 3 9 2 4 ( ) 4 ( )

Average wage less than $15 per hour5 ..... 4 5 5 7 3 5 1

Average wage $15 per hour or higher5 ..... 5 9 2 6 6 4 1

Average wage less than $24 per hour5 ..... 5 7 4 6 4 5 1

Average wage $24 per hour or higher5 ..... 4 9 2 6 6 4 1

Establishment characteristics

Education and health services .................. 2 9 2 6 4 3 1

Educational services ............................. 2 8 4 () 7 4 4 () 1

Elementary and secondary schools .. 2 9 4 () 7 4 4 () 2

Junior colleges, colleges, and

universities ....................................... 2 8 4 ( ) 4 ( ) 4 ( ) 4 ( ) 4 ( )

Health care and social assistance ......... 4 () 9 4 ( ) 4 () 5 4 () –

Hospitals ............................................ 4 ( ) 10 4 ( ) 4 ( ) 4 ( ) 4 () –

Public administration ................................. 9 7 4 5 7 5 4 ( )

1 to 99 workers .......................................... 4 ( ) 4 ( ) 4 ( ) 4 ( ) 4 () 5 2

50 to 99 workers .................................... 4 ( ) 4 ( ) 4 () 6 4 ( ) 4 ( ) 4 ( )

100 workers or more ................................. 5 8 3 6 6 4 1

100 to 499 workers ................................ 5 6 4 5 4 () 5 2

500 workers or more ............................. 5 9 2 6 5 4 1

State government ...................................... 4 9 4 () 4 4 4 ( ) 4 ( )

Local government ...................................... 5 8 2 7 6 4 2

See footnotes at end of table.
27

Table 11. Defined benefit plans: Selected age and service requirements1 for normal retirement,2

State and local government workers, National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics

Age 55 Age 60 Age 62 Age 65

Less than

30 years

30 years

or more

Less than

10 years

10 years

or more

Less than

10 years

Less than

10 years

10 years

or more

Geographic areas

New England ............................................. 4 () 4 4 ( ) 4 ( ) 4 ( ) 4 ( ) 4 ( )

Middle Atlantic ........................................... 8 30 4 ( ) 4 ( ) 34 4 ( ) 4 ( )

East North Central ..................................... 8 2 4 ( ) 12 4 ( ) 4 ( ) 4 ( )

South Atlantic ............................................ 2 10 4 ( ) 4 ( ) 4 ( ) 4 () –

Pacific ........................................................ 7 4 ( ) 4 ( ) 4 ( ) 4 ( ) 4 ( ) 4 ( )

1 This table presents, for selected combinations, percentages of

participants in plans that impose both age and service requirements for

normal retirement. Plans with only age requirements and plans with a

minimum age-plus-service requirement are not included. 2 Normal retirement is defined as the point at which the participant

could retire and immediately receive all accrued benefits by virtue of

service and earnings, without any reduction due to age. Typically, plans

specify a minimum length-of-service requirement and often a minimum

age requirement as well. 3 Less than 0.5 percent. 4 These data do not meet publication criteria. 5 The wage breakouts are based on the average wage for each

occupation surveyed, which may include workers both above and below

the threshold. See the Technical Note for more details.

NOTE: Dash indicates no workers in this category.
28

Table 12. Defined benefit plans: Early retirement1 availability, State and local

government workers, National Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

Early

retirement

available

Early

retirement not

available

Not

determinable

All workers ................................................. 100 82 15 2

Worker characteristics

Management, professional, and related .... 100 86 13 1

Professional and related ........................ 100 87 12 1

Teachers ........................................... 100 92 7 2 ( )

Primary, secondary, and special 

education school teachers ........... 100 94 5 2 ( )

Service ...................................................... 100 75 22 4

Protective service .................................. 100 68 28 4

Sales and office ......................................... 100 80 18 2

Office and administrative support .......... 100 80 18 2

Natural resources, construction, and 

maintenance ............................................ 100 85 12 2 ( )

Production, transportation, and 

material moving ....................................... 100 83 11 2 ( )

Full time ..................................................... 100 83 15 2

Part time .................................................... 100 78 19 2 ( )

Union ......................................................... 100 78 20 2

Nonunion ................................................... 100 87 11 2

Average wage less than $15 per hour3 ..... 100 86 11 3

Average wage $15 per hour or higher3 ..... 100 81 17 2

Average wage less than $24 per hour3 ..... 100 81 16 3

Average wage $24 per hour or higher3 ..... 100 84 15 1

Establishment characteristics

Education and health services .................. 100 87 11 2

Educational services ............................. 100 87 11 2

Elementary and secondary schools .. 100 89 9 3

Junior colleges, colleges, and

universities ....................................... 100 79 20 2 ( )

Health care and social assistance ......... 100 80 18 2 ( )

Hospitals ............................................ 100 80 19 2 ( )

Public administration ................................. 100 74 24 2

1 to 99 workers .......................................... 100 86 12 2 ( )

1 to 49 workers ...................................... 100 84 15 2 ( )

50 to 99 workers .................................... 100 89 9 2 ( )

100 workers or more ................................. 100 82 16 2

100 to 499 workers ................................ 100 86 12 2

500 workers or more ............................. 100 81 17 2

State government ...................................... 100 77 22 2 ( )

Local government ...................................... 100 84 13 2

See footnotes at end of table.
29

Table 12. Defined benefit plans: Early retirement1 availability, State and local

government workers, National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

Early

retirement

available

Early

retirement not

available

Not

determinable

Geographic areas

New England ............................................. 100 51 49 2 ( )

Middle Atlantic ........................................... 100 95 5 2 ( )

East North Central ..................................... 100 91 3 6

West North Central .................................... 100 94 2 ( ) 2 ( )

South Atlantic ............................................ 100 97 2 1

East South Central .................................... 100 71 2 ( ) 2 ( )

West South Central ................................... 100 88 12 2 ( )

Mountain .................................................... 100 93 2 ( ) 2 ( )

Pacific ........................................................ 100 52 48 2 ( )

1 Early retirement is defined as the point at which a

worker could retire and immediately receive accrued

benefits based on service and earnings, but reduced for

each year prior to normal retirement age. 2 These data do not meet publication criteria. 3 The wage breakouts are based on the average

wage for each occupation surveyed, which may include

workers both above and below the threshold. See the

Technical Note for more details.

NOTE: Because of rounding, sums of individual items

may not equal totals.
30

Table 13. Defined benefit plans: Selected age and service requirements for early retirement, State and local

government workers, National Compensation Survey, 2007

(All workers participating in defined benefit plans with early retirement = 100 percent)

Characteristics

No age

requirement Below age 55 Age 55 Age 60 Sum of age

plus service

requirement2

Less

than 30

years

30 years

or more

Less

than 10

years

10 years

or more

No service

requirement1

Less

than 10

years

10 years

or more

10 years

or more

All workers ................................................. 6 8 11 13 3 ( ) 16 28 3 () 2

Worker characteristics

Management, professional, and related .... 6 3 ( ) 11 12 7 17 27 3 ( ) 3 ( )

Professional and related ........................ 6 3 ( ) 10 11 7 18 27 3 ( ) 3 ( )

Teachers ........................................... 6 3 ( ) 3 () 9 3 ( ) 20 27 3 ( ) 3 ( )

Primary, secondary, and special 

education school teachers ........... 6 3 ( ) 3 ( ) 10 3 ( ) 18 29 3 ( ) 3 ( )

Service ...................................................... 4 3 ( ) 16 18 3 ( ) 11 28 1 3

Protective service .................................. 3 ( ) 3 ( ) 23 27 3 ( ) 7 22 3 () 5

Sales and office ......................................... 4 3 ( ) 10 13 3 ( ) 15 30 3 ( ) 3 ( )

Office and administrative support .......... 5 3 ( ) 11 12 3 ( ) 15 29 3 ( ) 3 ( )

Natural resources, construction, and 

maintenance ............................................ 3 ( ) 3 ( ) 3 ( ) 14 3 ( ) 17 29 3 ( ) 3 ( )

Production, transportation, and 

material moving ....................................... 3 () 5 3 ( ) 15 3 ( ) 14 34 3 ( ) 3 ( )

Full time ..................................................... 6 8 12 14 3 ( ) 15 27 3 () 2

Part time .................................................... 3 ( ) 3 ( ) 3 () 6 3 ( ) 23 37 3 ( ) 3 ( )

Union ......................................................... 5 3 ( ) 12 6 9 21 40 3 ( ) 3 ( )

Nonunion ................................................... 7 15 11 20 3 ( ) 11 17 3 () 3

Average wage less than $15 per hour4 ..... 3 ( ) 10 13 15 3 ( ) 12 23 3 ( ) 3 ( )

Average wage $15 per hour or higher4 ..... 5 8 11 13 3 ( ) 17 30 3 () 2

Average wage less than $24 per hour4 ..... 6 7 12 15 3 ( ) 13 27 3 () 2

Average wage $24 per hour or higher4 ..... 6 3 ( ) 11 11 6 19 29 3 () 2

Establishment characteristics

Education and health services .................. 7 3 ( ) 10 11 6 18 26 3 ( ) 3 ( )

Educational services ............................. 6 3 ( ) 3 ( ) 10 6 18 25 3 ( ) 3 ( )

Elementary and secondary schools .. 6 3 ( ) 3 ( ) 11 5 18 27 3 ( ) 3 ( )

Junior colleges, colleges, and

universities ....................................... 3 ( ) 3 ( ) 3 () 9 3 ( ) 19 15 3 ( ) 3 ( )

Health care and social assistance ......... 8 3 ( ) 3 ( ) 13 3 ( ) 16 35 3 ( ) 3 ( )

Hospitals ............................................ 8 3 ( ) 3 ( ) 3 ( ) 3 ( ) 18 37 3 () –

Public administration ................................. 5 3 ( ) 16 19 3 ( ) 11 29 3 () 3

1 to 99 workers .......................................... 3 ( ) 3 ( ) 3 ( ) 16 3 ( ) 11 30 3 ( ) 3 ( )

1 to 49 workers ...................................... 3 ( ) 3 ( ) 3 ( ) 3 ( ) 3 ( ) 3 ( ) 27 3 ( ) 3 ( )

50 to 99 workers .................................... 3 ( ) 3 ( ) 3 ( ) 13 3 ( ) 3 ( ) 32 3 ( ) 3 ( )

100 workers or more ................................. 6 9 12 13 3 ( ) 16 28 3 () 2

100 to 499 workers ................................ 6 3 ( ) 8 11 3 ( ) 15 34 3 ( ) 3 ( )

500 workers or more ............................. 6 10 13 14 3 ( ) 17 26 3 () 2

State government ...................................... 3 ( ) 3 ( ) 13 15 3 ( ) 13 28 3 ( ) 3 ( )

Local government ...................................... 6 10 11 13 6 17 28 3 () 2

See footnotes at end of table.
31

Table 13. Defined benefit plans: Selected age and service requirements for early retirement, State and local

government workers, National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans with early retirement = 100 percent)

Characteristics

No age

requirement Below age 55 Age 55 Age 60 Sum of age

plus service

requirement2

Less

than 30

years

30 years

or more

Less

than 10

years

10 years

or more

No service

requirement1

Less

than 10

years

10 years

or more

10 years

or more

Geographic areas

New England ............................................. 16 – 3 ( ) 3 () – 3 ( ) 3 ( ) 3 ( ) 3 ( )

Middle Atlantic ........................................... 3 ( ) 3 ( ) 3 ( ) 3 ( ) 3 ( ) 34 57 3 ( ) 3 ( )

East North Central ..................................... 3 ( ) 3 ( ) 3 ( ) 16 3 ( ) 12 51 3 ( ) 3 ( )

West North Central .................................... – 3 ( ) 3 ( ) 3 ( ) 3 ( ) 15 3 () – 3 ( )

South Atlantic ............................................ 4 3 ( ) 32 32 3 ( ) 3 ( ) 12 3 ( ) 3 ( )

West South Central ................................... 3 ( ) 3 ( ) 3 () 4 – 3 ( ) 3 ( ) 3 ( ) 3 ( )

Pacific ........................................................ 3 () – 3 ( ) 3 ( ) 3 ( ) 3 ( ) 35 3 () –

1 Where no service requirement is specified for early retirement, the service

required for full vesting, usually 5 years, applies. 2 In some plans, participants must also satisfy a minimum age or service

requirement. These plans are included in the totals for specific age and service

requirements. 3 These data do not meet publication criteria.

4 The wage breakouts are based on the average wage for each occupation

surveyed, which may include workers both above and below the threshold. 

See the Technical Note for more details.

NOTE: Dash indicates no workers in this category.
32

Table 14. Defined benefit plans: Early retirement reductions,1 State and local

government workers, National Compensation Survey, 2007

(All workers participating in defined benefit plans with early retirement = 100 percent)

Characteristics Total Uniform

reduction2

Reduction

varies by age

or service

Actuarial

reduction

Not

determinable

All workers ................................................. 100 62 25 10 3

Worker characteristics

Management, professional, and related .... 100 62 25 9 3

Professional and related ........................ 100 63 25 9 3

Teachers ........................................... 100 62 27 8 2

Primary, secondary, and special 

education school teachers ........... 100 63 27 9 3 ( )

Service ...................................................... 100 62 23 11 4

Protective service .................................. 100 56 27 14 3

Sales and office ......................................... 100 63 24 9 3

Office and administrative support .......... 100 63 24 9 3

Natural resources, construction, and 

maintenance ............................................ 100 53 30 13 3 ( )

Production, transportation, and 

material moving ....................................... 100 60 21 18 3 ( )

Full time ..................................................... 100 62 24 10 3

Part time .................................................... 100 53 34 8 5

Union ......................................................... 100 56 31 9 3

Nonunion ................................................... 100 67 20 11 3

Average wage less than $15 per hour4 ..... 100 65 22 10 3

Average wage $15 per hour or higher4 ..... 100 61 26 10 3

Average wage less than $24 per hour4 ..... 100 63 23 11 4

Average wage $24 per hour or higher4 ..... 100 61 27 9 2

Establishment characteristics

Education and health services .................. 100 64 25 9 2

Educational services ............................. 100 65 25 9 2

Elementary and secondary schools .. 100 66 25 8 1

Junior colleges, colleges, and

universities ....................................... 100 65 23 3 ( ) 3 ( )

Health care and social assistance ......... 100 57 22 11 3 ( )

Hospitals ............................................ 100 60 24 3 ( ) 3 ( )

Public administration ................................. 100 57 25 13 5

1 to 99 workers .......................................... 100 54 30 14 3 ( )

1 to 49 workers ...................................... 100 47 35 3 ( ) 3 ( )

50 to 99 workers .................................... 100 60 3 ( ) 13 3 ( )

100 workers or more ................................. 100 63 24 10 3

100 to 499 workers ................................ 100 55 27 15 4

500 workers or more ............................. 100 66 23 8 3

State government ...................................... 100 60 24 12 5

Local government ...................................... 100 63 25 9 3

See footnotes at end of table.
33

Table 14. Defined benefit plans: Early retirement reductions,1 State and local

government workers, National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans with early retirement = 100 percent)

Characteristics Total Uniform

reduction2

Reduction

varies by age

or service

Actuarial

reduction

Not

determinable

Geographic areas

New England ............................................. 100 33 37 3 () –

Middle Atlantic ........................................... 100 64 28 3 ( ) 3 ( )

East North Central ..................................... 100 49 25 10 3 ( )

West North Central .................................... 100 3 ( ) 3 ( ) 29 3 ( )

South Atlantic ............................................ 100 93 3 3 ( ) 3 ( )

East South Central .................................... 100 80 3 ( ) 3 ( ) 3 ( )

West South Central ................................... 100 69 19 11 3 ( )

Mountain .................................................... 100 3 ( ) 70 3 () –

Pacific ........................................................ 100 36 54 3 ( ) 3 ( )

1 Reduction for each year prior to normal retirement. 2 In specific cases, uniform reductions may approximate

actuarial reductions, such as early retirement at age 55 with a

reduction of 6 percent per year between age 55 and the plan’s

normal retirement age of 62. 3 These data do not meet publication criteria. 4 The wage breakouts are based on the average wage for

each occupation surveyed, which may include workers both

above and below the threshold. See the Technical Note for

more details.

NOTE: Dash indicates no workers in this category. Because of

rounding, sums of individual items may not equal totals.
34

Table 15. Defined benefit plans: Disability retirement benefits, State and local government workers,

National Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

Disability

retirement

available

Disability retirement begins Disability

retirement not

available

Not

determinable Immediately Deferred Not

determinable

All workers ................................................. 100 95 71 11 13 2 4

Worker characteristics

Management, professional, and related .... 100 95 70 11 14 1 3

Professional and related ........................ 100 96 70 12 13 1 3

Teachers ........................................... 100 96 70 11 14 1 ( ) 2 ( )

Primary, secondary, and special 

education school teachers ........... 100 96 70 11 15 2 ( ) 2 ( )

Service ...................................................... 100 95 71 12 12 3 3

Protective service .................................. 100 94 71 10 13 2 () 3

Sales and office ......................................... 100 95 71 11 12 2 ( ) 2 ( )

Office and administrative support .......... 100 94 71 11 12 2 ( ) 2 ( )

Natural resources, construction, and 

maintenance ............................................ 100 92 74 7 11 2 ( ) 2 ( )

Production, transportation, and 

material moving ....................................... 100 93 76 8 9 2 ( ) 2 ( )

Full time ..................................................... 100 95 71 11 13 2 4

Part time .................................................... 100 95 72 17 6 2 ( ) 2 ( )

Union ......................................................... 100 95 66 13 15 2 2 ( )

Nonunion ................................................... 100 95 76 9 10 2 () 4

Average wage less than $15 per hour3 ..... 100 94 73 9 12 2 ( ) 2 ( )

Average wage $15 per hour or higher3 ..... 100 95 70 12 13 2 3

Average wage less than $24 per hour3 ..... 100 94 71 12 12 2 4

Average wage $24 per hour or higher3 ..... 100 95 71 11 13 2 3

Establishment characteristics

Education and health services .................. 100 96 70 13 12 1 2 ( )

Educational services ............................. 100 96 70 13 12 1 2 ( )

Elementary and secondary schools .. 100 96 69 14 13 1 2 ( )

Junior colleges, colleges, and

universities ....................................... 100 95 78 10 2 ( ) 2 ( ) 2 ( )

Health care and social assistance ......... 100 97 71 13 14 2 ( ) 2 ( )

Hospitals ............................................ 100 96 72 13 11 2 ( ) 2 ( )

Public administration ................................. 100 93 70 9 15 3 4

1 to 99 workers .......................................... 100 94 73 7 14 2 2 ( )

1 to 49 workers ...................................... 100 93 78 2 ( ) 2 ( ) 2 ( ) 2 ( )

50 to 99 workers .................................... 100 95 69 7 19 2 2 ( )

100 workers or more ................................. 100 95 71 12 13 2 4

100 to 499 workers ................................ 100 93 73 11 9 3 2 ( )

500 workers or more ............................. 100 96 70 12 14 1 3

State government ...................................... 100 93 71 11 2 () 3 4

Local government ...................................... 100 95 71 11 13 1 2 ( )

See footnotes at end of table.
35

Table 15. Defined benefit plans: Disability retirement benefits, State and local government workers,

National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

Disability

retirement

available

Disability retirement begins Disability

retirement not

available

Not

determinable Immediately Deferred Not

determinable

Geographic areas

New England ............................................. 100 76 67 2 ( ) 2 ( ) 24 –

Middle Atlantic ........................................... 100 99 84 15 1 ( ) 2 ( ) 2 ( )

East North Central ..................................... 100 96 86 2 () 9 – 2 ( )

West North Central .................................... 100 94 58 2 ( ) 12 2 ( ) 2 ( )

South Atlantic ............................................ 100 99 55 13 31 2 ( ) 2 ( )

East South Central .................................... 100 100 89 2 ( ) 2 () – –

West South Central ................................... 100 100 92 2 () 8 – –

Mountain .................................................... 100 62 58 2 ( ) 2 ( ) 2 ( ) 2 ( )

Pacific ........................................................ 100 98 57 27 2 ( ) 2 ( ) 2 ( )

1 Less than 0.5 percent. 2 These data do not meet publication criteria. 3 The wage breakouts are based on the average wage for each occupation

surveyed, which may include workers both above and below the threshold. 

See the Technical Note for more details.

NOTE: Dash indicates no workers in this category. Because of rounding, sums

of individual items may not equal totals.
36

Table 16. Defined benefit plans: Postretirement survivor benefits, State and local government workers,

National Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With postretirement

survivor

benefits

Jointandsurvivor

annuity1

Percentage of joint-and-survivor annuity1

Percent of

accrued

benefit 50

percent

51 to 99

percent

Choice of

percentages

Percentage not

determinable

All workers ................................................. 100 100 90 6 8 72 3 10

Worker characteristics

Management, professional, and related .... 100 100 91 6 8 74 2 9

Professional and related ........................ 100 100 91 6 8 74 2 9

Teachers ........................................... 100 100 91 7 9 73 2 9

Primary, secondary, and special 

education school teachers ........... 100 100 91 2 ( ) 9 72 2 () 9

Service ...................................................... 100 100 88 7 9 66 5 12

Protective service .................................. 100 99 84 9 11 55 6 15

Sales and office ......................................... 100 100 90 4 6 77 2 10

Office and administrative support .......... 100 100 89 4 6 77 2 10

Natural resources, construction, and 

maintenance ............................................ 100 99 89 8 2 ( ) 68 4 10

Production, transportation, and 

material moving ....................................... 100 98 86 7 2 ( ) 68 2 ( ) 12

Full time ..................................................... 100 100 90 6 8 72 2 10

Part time .................................................... 100 100 96 10 2 ( ) 80 2 () 4

Union ......................................................... 100 100 88 7 10 69 3 11

Nonunion ................................................... 100 100 92 5 6 76 2 8

Average wage less than $15 per hour3 ..... 100 100 93 5 7 76 2 6

Average wage $15 per hour or higher3 ..... 100 100 89 6 8 71 3 11

Average wage less than $24 per hour3 ..... 100 100 91 5 7 74 2 9

Average wage $24 per hour or higher3 ..... 100 100 89 7 8 70 3 11

Establishment characteristics

Education and health services .................. 100 100 92 6 8 75 2 8

Educational services ............................. 100 100 92 6 8 75 2 8

Elementary and secondary schools .. 100 100 92 7 9 74 2 8

Junior colleges, colleges, and

universities ....................................... 100 100 90 2 ( ) 2 ( ) 78 2 ( ) 10

Health care and social assistance ......... 100 100 89 2 ( ) 2 ( ) 77 2 ( ) 11

Hospitals ............................................ 100 100 90 2 ( ) 2 ( ) 84 2 ( ) 10

Public administration ................................. 100 100 87 6 10 66 4 12

1 to 99 workers .......................................... 100 100 96 2 ( ) 5 77 4 2 ( )

1 to 49 workers ...................................... 100 100 96 2 ( ) 2 ( ) 75 2 ( ) 2 ( )

50 to 99 workers .................................... 100 100 95 2 ( ) 2 ( ) 78 4 5

100 workers or more ................................. 100 100 90 6 8 72 2 10

100 to 499 workers ................................ 100 100 88 7 2 ( ) 71 4 12

500 workers or more ............................. 100 100 90 6 9 72 2 9

State government ...................................... 100 100 87 2 ( ) 2 ( ) 74 3 13

Local government ...................................... 100 100 91 7 8 72 2 8

See footnotes at end of table.
37

Table 16. Defined benefit plans: Postretirement survivor benefits, State and local government workers,

National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With postretirement

survivor

benefits

Jointandsurvivor

annuity1

Percentage of joint-and-survivor annuity1

Percent of

accrued

benefit 50

percent

51 to 99

percent

Choice of

percentages

Percentage not

determinable

Geographic areas

New England ............................................. 100 100 83 2 ( ) 24 33 22 2 ( )

Middle Atlantic ........................................... 100 100 66 2 ( ) 2 ( ) 63 2 ( ) 34

East North Central ..................................... 100 100 91 20 2 ( ) 67 2 () 9

West North Central .................................... 100 100 100 2 ( ) 2 ( ) 94 2 ( ) 2 ( )

South Atlantic ............................................ 100 99 90 2 ( ) 30 57 2 ( ) 2 ( )

East South Central .................................... 100 100 93 – 2 ( ) 69 2 ( ) 2 ( )

West South Central ................................... 100 100 97 7 2 ( ) 88 – 2 ( )

Mountain .................................................... 100 98 97 2 ( ) 2 ( ) 70 2 () 1

Pacific ........................................................ 100 100 99 2 ( ) – 97 2 ( ) 2 ( )

1 An annuity that provides income during the lifetime of both the retiree

and the surviving spouse. The accrued pension will usually be actuarially

reduced at retirement because of the longer time span over which payments

are expected to be made. Employees and their spouses are required to waive

the spouse annuity in writing if they desire either a pension during the

employee’s lifetime only or another option offered by the plan, such as a

guarantee of payment for a specified period.

2 These data do not meet publication criteria. 3 The wage breakouts are based on the average wage for each

occupation surveyed, which may include workers both above and below the

threshold. See the Technical Note for more details.

NOTE: Dash indicates no workers in this category. Because of rounding,

sums of individual items may not equal totals.
38

Table 17. Defined benefit plans: Preretirement survivor benefits, State and local government workers, National

Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With

preretirement

survivor

benefits1

Equivalent

to

joint-andsurvivor

annuity2

Percentage equivalent to

joint-and-survivor annuity2

Percent

of

accrued

benefit

Other4 Not

determinable 50 percent

of

employee’s

pension

Other

percent of

employee’s

pension3

Employee

choice of

percent

All workers ................................................. 100 98 71 16 7 47 13 14 2

Worker characteristics

Management, professional, and related .... 100 97 72 15 7 49 13 13 2

Professional and related ........................ 100 97 72 16 6 49 13 12 2

Teachers ........................................... 100 97 74 15 6 52 14 9 3

Primary, secondary, and special 

education school teachers ........... 100 97 75 15 6 53 15 7 3

Service ...................................................... 100 97 68 15 7 45 16 13 5 ( )

Protective service .................................. 100 95 69 15 9 42 19 7 5 ( )

Sales and office ......................................... 100 98 67 14 7 44 13 19 5 ( )

Office and administrative support .......... 100 98 66 15 6 44 13 19 5 ( )

Natural resources, construction, and 

maintenance ............................................ 100 99 76 23 5 ( ) 43 10 13 5 ( )

Production, transportation, and 

material moving ....................................... 100 99 70 19 5 ( ) 44 14 15 5 ( )

Full time ..................................................... 100 98 70 15 7 47 14 14 2

Part time .................................................... 100 99 74 21 5 ( ) 47 7 17 5 ( )

Union ......................................................... 100 97 68 13 7 47 16 13 3

Nonunion ................................................... 100 98 73 18 7 47 11 14 5 ( )

Average wage less than $15 per hour6 ..... 100 98 72 18 6 48 10 17 5 ( )

Average wage $15 per hour or higher6 ..... 100 97 70 15 7 47 14 13 2

Average wage less than $24 per hour6 ..... 100 98 70 17 6 45 11 17 1

Average wage $24 per hour or higher6 ..... 100 97 71 15 7 49 15 10 2

Establishment characteristics

Education and health services .................. 100 98 71 16 6 48 12 15 2

Educational services ............................. 100 98 71 16 6 49 12 15 2

Elementary and secondary schools .. 100 98 73 16 5 51 13 12 2

Junior colleges, colleges, and

universities ....................................... 100 99 60 13 5 ( ) 39 9 30 5 ( )

Health care and social assistance ......... 100 98 67 20 5 ( ) 39 16 15 5 ( )

Hospitals ............................................ 100 98 71 18 5 ( ) 47 14 5 () –

Public administration ................................. 100 97 70 15 8 45 16 11 2

1 to 99 workers .......................................... 100 97 74 20 13 41 9 14 5 ( )

1 to 49 workers ...................................... 100 98 80 18 19 44 5 ( ) 5 ( ) 5 ( )

50 to 99 workers .................................... 100 96 69 21 5 ( ) 39 12 5 ( ) 5 ( )

100 workers or more ................................. 100 98 70 15 6 48 14 14 2

100 to 499 workers ................................ 100 96 67 18 8 39 14 5 () 3

500 workers or more ............................. 100 98 71 14 5 50 14 13 1

State government ...................................... 100 98 61 13 5 ( ) 39 15 22 5 ( )

Local government ...................................... 100 98 74 17 7 50 13 11 2

See footnotes at end of table.
39

Table 17. Defined benefit plans: Preretirement survivor benefits, State and local government workers, National

Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With

preretirement

survivor

benefits1

Equivalent

to

joint-andsurvivor

annuity2

Percentage equivalent to

joint-and-survivor annuity2

Percent

of

accrued

benefit

Other4 Not

determinable 50 percent

of

employee’s

pension

Other

percent of

employee’s

pension3

Employee

choice of

percent

Geographic areas

New England ............................................. 100 82 69 31 5 ( ) 5 ( ) 5 ( ) 10 17

Middle Atlantic ........................................... 100 100 68 16 5 ( ) 47 31 5 ( ) 5 ( )

East North Central ..................................... 100 99 73 23 2 46 23 5 ( ) 5 ( )

West North Central .................................... 100 98 94 5 ( ) 5 ( ) 70 5 ( ) 5 ( ) 5 ( )

South Atlantic ............................................ 100 100 79 25 2 52 19 5 ( ) 5 ( )

East South Central .................................... 100 93 5 ( ) 5 ( ) 5 ( ) 5 ( ) 5 ( ) 5 () –

West South Central ................................... 100 100 87 5 ( ) 5 ( ) 74 5 ( ) 5 () –

Mountain .................................................... 100 96 93 5 ( ) 5 ( ) 64 5 ( ) 5 ( ) 5 ( )

Pacific ........................................................ 100 99 51 5 15 31 5 43 5 ( )

1 Survivor annuity is based upon the benefit the employee would have received

if retirement had occurred on the date of death. 2 The spouse annuity is computed as if the employee had retired with a

joint-and-survivor annuity. That is, the accrued pension is first reduced because of

the longer time span over which payments were expected to be made to both the

retiree and the surviving spouse. The spouse’s share is then the specified

percentage of the reduced amount. 3 Other percentages range from 51 percent to 100 percent of the retiree’s

pension.

4 Includes annuity based on dollar amount formula or a percentage of earnings. 5 These data do not meet publication criteria. 6 The wage breakouts are based on the average wage for each occupation

surveyed, which may include workers both above and below the threshold. See the

Technical Note for more details.

NOTE: Dash indicates no workers in this category. Because of rounding, sums of

individual items may not equal totals.
40

Table 18. Defined benefit plans: Vesting requirements, State and local government

workers, National Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total Immediate

full vesting

Cliff

vesting1

Graded

vesting2

Not

determinable

All workers ................................................. 100 4 89 1 7

Worker characteristics

Management, professional, and related .... 100 4 89 3 () 6

Professional and related ........................ 100 4 89 3 () 6

Teachers ........................................... 100 3 ( ) 88 – 6

Primary, secondary, and special 

education school teachers ........... 100 3 ( ) 87 – 6

Service ...................................................... 100 3 88 2 7

Protective service .................................. 100 5 84 3 9

Sales and office ......................................... 100 2 91 3 () 7

Office and administrative support .......... 100 2 90 3 () 7

Natural resources, construction, and 

maintenance ............................................ 100 3 ( ) 87 3 ( ) 3 ( )

Production, transportation, and 

material moving ....................................... 100 3 ( ) 85 3 ( ) 3 ( )

Full time ..................................................... 100 4 89 1 7

Part time .................................................... 100 3 ( ) 90 3 () 8

Union ......................................................... 100 3 89 1 8

Nonunion ................................................... 100 3 ( ) 89 3 () 6

Average wage less than $15 per hour4 ..... 100 3 ( ) 89 3 ( ) 3 ( )

Average wage $15 per hour or higher4 ..... 100 4 89 1 7

Average wage less than $24 per hour4 ..... 100 3 ( ) 89 3 () 7

Average wage $24 per hour or higher4 ..... 100 5 89 1 6

Establishment characteristics

Education and health services .................. 100 4 90 3 () 6

Educational services ............................. 100 4 89 3 () 6

Elementary and secondary schools .. 100 5 89 3 () 6

Junior colleges, colleges, and

universities ....................................... 100 3 ( ) 92 – 3 ( )

Health care and social assistance ......... 100 3 ( ) 95 – 3 ( )

Hospitals ............................................ 100 – 97 – 3 ( )

Public administration ................................. 100 3 87 2 8

1 to 99 workers .......................................... 100 3 ( ) 84 3 ( ) 3 ( )

1 to 49 workers ...................................... 100 3 ( ) 82 – 3 ( )

50 to 99 workers .................................... 100 3 ( ) 86 3 () 9

100 workers or more ................................. 100 3 89 1 6

100 to 499 workers ................................ 100 4 88 3 () 7

500 workers or more ............................. 100 3 90 1 6

State government ...................................... 100 3 ( ) 92 – 7

Local government ...................................... 100 4 88 1 7

See footnotes at end of table.
41

Table 18. Defined benefit plans: Vesting requirements, State and local government

workers, National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total Immediate

full vesting

Cliff

vesting1

Graded

vesting2

Not

determinable

Geographic areas

New England ............................................. 100 – 92 3 ( ) 3 ( )

Middle Atlantic ........................................... 100 3 ( ) 99 3 ( ) 3 ( )

East North Central ..................................... 100 9 74 3 ( ) 3 ( )

West North Central .................................... 100 3 ( ) 89 3 ( ) 3 ( )

South Atlantic ............................................ 100 2 97 3 ( ) 3 ( )

East South Central .................................... 100 3 ( ) 87 3 ( ) 3 ( )

West South Central ................................... 100 – 93 3 () 6

Mountain .................................................... 100 3 ( ) 61 3 ( ) 3 ( )

Pacific ........................................................ 100 – 92 – 8

1 Under a cliff-vesting schedule, an employee is not

entitled to any benefits accrued under a pension plan until

satisfying the requirement for 100-percent vesting. 2 Graded vesting schedules give an employee rights to a

gradually increasing share of pension benefits determined by

years of service, eventually reaching 100-percent vesting

status. 3 These data do not meet publication criteria.

4 The wage breakouts are based on the average wage for

each occupation surveyed, which may include workers both

above and below the threshold. See the Technical Note for

more details.

NOTE: Dash indicates no workers in this category. Because

of rounding, sums of individual items may not equal totals.
42

Table 19. Defined benefit plans: Provisions for early receipt of deferred vested benefits, State and local

government workers, National Compensation Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total Immediate

Receipt

allowed

prior to

normal

retirement

Early retirement reduction Receipt

not

allowed

prior to

normal

retirement

Not

determinable

Same

reduction as

for early

retirement

Other

reduction

Not

determinable

All workers ................................................. 100 4 64 60 1 2 27 6

Worker characteristics

Management, professional, and related .... 100 4 66 63 1 ( ) 3 25 5

Professional and related ........................ 100 4 67 64 1 ( ) 3 24 5

Teachers ........................................... 100 3 71 68 1 ( ) 3 22 4

Primary, secondary, and special 

education school teachers ........... 100 1 ( ) 73 70 – 1 ( ) 20 5

Service ...................................................... 100 4 58 53 1 ( ) 1 ( ) 33 5

Protective service .................................. 100 6 50 45 1 ( ) 1 ( ) 41 1 ( )

Sales and office ......................................... 100 4 61 58 1 ( ) 1 ( ) 28 7

Office and administrative support .......... 100 4 60 57 1 ( ) 2 29 7

Natural resources, construction, and 

maintenance ............................................ 100 1 ( ) 65 59 1 ( ) 1 ( ) 22 1 ( )

Production, transportation, and 

material moving ....................................... 100 1 ( ) 57 52 1 ( ) 1 ( ) 27 10

Full time ..................................................... 100 4 64 60 1 2 27 5

Part time .................................................... 100 1 ( ) 62 55 1 ( ) 1 ( ) 29 7

Union ......................................................... 100 2 54 50 1 ( ) 3 39 5

Nonunion ................................................... 100 7 73 70 2 1 ( ) 14 6

Average wage less than $15 per hour2 ..... 100 1 ( ) 71 66 1 ( ) 1 ( ) 16 8

Average wage $15 per hour or higher2 ..... 100 4 61 58 1 2 30 5

Average wage less than $24 per hour2 ..... 100 5 65 61 2 2 24 7

Average wage $24 per hour or higher2 ..... 100 4 62 59 1 ( ) 3 30 5

Establishment characteristics

Education and health services .................. 100 1 ( ) 69 65 1 ( ) 3 22 6

Educational services ............................. 100 1 ( ) 70 66 1 ( ) 3 21 6

Elementary and secondary schools .. 100 3 71 67 1 ( ) 3 19 7

Junior colleges, colleges, and

universities ....................................... 100 1 ( ) 62 59 1 ( ) 1 ( ) 31 1 ( )

Health care and social assistance ......... 100 1 ( ) 62 60 1 ( ) 1 ( ) 28 1 ( )

Hospitals ............................................ 100 1 ( ) 63 61 1 ( ) 1 ( ) 27 1 ( )

Public administration ................................. 100 6 54 50 2 2 36 5

1 to 99 workers .......................................... 100 1 ( ) 69 64 1 ( ) 1 ( ) 17 1 ( )

1 to 49 workers ...................................... 100 1 ( ) 63 60 1 ( ) 1 ( ) 19 1 ( )

50 to 99 workers .................................... 100 1 ( ) 76 67 1 ( ) 1 ( ) 15 1 ( )

100 workers or more ................................. 100 4 63 59 1 2 28 5

100 to 499 workers ................................ 100 4 65 59 1 ( ) 1 ( ) 25 6

500 workers or more ............................. 100 4 62 59 1 2 29 5

State government ...................................... 100 1 ( ) 60 56 1 ( ) 3 29 5

Local government ...................................... 100 3 65 61 2 2 26 6

See footnotes at end of table.
43

Table 19. Defined benefit plans: Provisions for early receipt of deferred vested benefits, State and local

government workers, National Compensation Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total Immediate

Receipt

allowed

prior to

normal

retirement

Early retirement reduction Receipt

not

allowed

prior to

normal

retirement

Not

determinable

Same

reduction as

for early

retirement

Other

reduction

Not

determinable

Geographic areas

New England ............................................. 100 1 ( ) 26 26 – – 73 1 ( )

Middle Atlantic ........................................... 100 – 49 49 – 1 ( ) 50 1 ( )

East North Central ..................................... 100 1 ( ) 82 73 1 ( ) 1 ( ) 10 6

West North Central .................................... 100 1 ( ) 89 69 1 ( ) 20 1 ( ) 1 ( )

South Atlantic ............................................ 100 1 ( ) 92 91 1 ( ) 1 () 5 2

West South Central ................................... 100 1 ( ) 81 73 – 1 ( ) 1 ( ) 1 ( )

Mountain .................................................... 100 1 ( ) 49 49 – – 6 1 ( )

Pacific ........................................................ 100 1 ( ) 26 25 1 ( ) 1 ( ) 67 1 ( )

1 These data do not meet publication criteria. 2 The wage breakouts are based on the average wage for each occupation

surveyed, which may include workers both above and below the threshold. See

the Technical Note for more details.

NOTE: Dash indicates no workers in this category. Because of rounding, sums of

individual items may not equal totals.
44

Table 20. Defined benefit plans: Portability provisions, State and local government workers, National Compensation

Survey, 2007

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With

portability

provisions

Types of portability provisions

No

portability

provisions

Not

determinable Transfer of

service

credits

Transfer of

service

assets

Transfer of

service

credits and

assets

Lump sum

over $5,000

paid to

separated

employee

Other

All workers ................................................. 100 56 17 1 29 2 7 35 8

Worker characteristics

Management, professional, and related .... 100 57 18 1 30 2 7 33 9

Professional and related ........................ 100 58 18 1 30 2 7 33 10

Teachers ........................................... 100 60 22 1 ( ) 30 1 ( ) 6 30 10

Primary, secondary, and special 

education school teachers ........... 100 60 22 1 ( ) 29 1 ( ) 7 30 10

Service ...................................................... 100 55 17 2 27 2 7 39 6

Protective service .................................. 100 54 16 2 25 1 ( ) 7 40 6

Sales and office ......................................... 100 55 15 1 ( ) 28 1 ( ) 8 38 7

Office and administrative support .......... 100 54 15 1 ( ) 28 1 ( ) 8 39 7

Natural resources, construction, and 

maintenance ............................................ 100 52 13 1 ( ) 24 1 ( ) 1 ( ) 37 11

Production, transportation, and 

material moving ....................................... 100 61 18 1 ( ) 28 1 ( ) 12 29 10

Full time ..................................................... 100 56 17 1 29 2 7 35 8

Part time .................................................... 100 56 24 1 ( ) 20 1 ( ) 9 34 10

Union ......................................................... 100 52 23 1 21 2 5 41 7

Nonunion ................................................... 100 61 10 1 36 3 10 29 10

Average wage less than $15 per hour2 ..... 100 58 15 1 ( ) 31 1 ( ) 9 35 7

Average wage $15 per hour or higher2 ..... 100 56 18 1 28 2 7 35 9

Average wage less than $24 per hour2 ..... 100 56 15 1 29 3 8 36 8

Average wage $24 per hour or higher2 ..... 100 57 19 1 28 2 6 34 9

Establishment characteristics

Education and health services .................. 100 56 18 1 ( ) 29 1 ( ) 7 34 10

Educational services ............................. 100 57 18 1 ( ) 30 1 ( ) 7 33 10

Elementary and secondary schools .. 100 57 19 1 ( ) 29 1 ( ) 6 33 10

Junior colleges, colleges, and

universities ....................................... 100 56 11 1 ( ) 35 1 ( ) 1 ( ) 35 1 ( )

Health care and social assistance ......... 100 49 15 1 ( ) 22 1 ( ) 1 ( ) 41 10

Hospitals ............................................ 100 46 13 1 ( ) 20 1 ( ) 1 ( ) 47 1 ( )

Public administration ................................. 100 56 15 2 27 3 9 38 6

1 to 99 workers .......................................... 100 61 16 1 ( ) 29 1 ( ) 1 ( ) 31 8

1 to 49 workers ...................................... 100 58 15 1 ( ) 26 1 ( ) 1 ( ) 33 1 ( )

50 to 99 workers .................................... 100 65 17 1 ( ) 32 1 ( ) 1 ( ) 29 6

100 workers or more ................................. 100 56 17 1 29 2 7 36 9

100 to 499 workers ................................ 100 56 23 3 21 2 7 36 8

500 workers or more ............................. 100 56 15 1 31 2 7 35 9

State government ...................................... 100 55 15 1 30 2 7 36 9

Local government ...................................... 100 57 18 1 28 2 7 35 8

See footnotes at end of table.
45

Table 20. Defined benefit plans: Portability provisions, State and local government workers, National Compensation

Survey, 2007—Continued

(All workers participating in defined benefit plans = 100 percent)

Characteristics Total

With

portability

provisions

Types of portability provisions

No

portability

provisions

Not

determinable Transfer of

service

credits

Transfer of

service

assets

Transfer of

service

credits and

assets

Lump sum

over $5,000

paid to

separated

employee

Other

Geographic areas

New England ............................................. 100 54 1 ( ) 1 ( ) 29 – 18 43 1 ( )

Middle Atlantic ........................................... 100 52 1 ( ) – 25 – 1 43 1 ( )

East North Central ..................................... 100 49 30 1 ( ) 1 ( ) 1 ( ) 1 ( ) 33 18

West North Central .................................... 100 75 23 1 ( ) 1 ( ) 1 ( ) 1 ( ) 22 1 ( )

South Atlantic ............................................ 100 46 1 ( ) 1 ( ) 32 1 ( ) 1 ( ) 45 9

West South Central ................................... 100 80 1 ( ) 1 ( ) 70 1 ( ) 1 ( ) 1 ( ) 13

Mountain .................................................... 100 75 1 ( ) 1 ( ) 1 ( ) 24 – 1 ( ) 1 ( )

Pacific ........................................................ 100 59 35 1 ( ) 20 1 ( ) 1 ( ) 38 1 ( )

1 These data do not meet publication criteria. 2 The wage breakouts are based on the average wage for each occupation

surveyed, which may include workers both above and below the threshold. See the

Technical Note for more details.

NOTE: Dash indicates no workers in this category. Because of rounding, sums of

individual items may not equal totals.
46

Table 21. Defined benefit plans: Purchase of credits for prior government

service, State-sponsored plans, National Compensation Survey, 2007

(All workers participating in State-sponsored defined benefit plans = 100 percent)

Characteristics Total

Availability of credit

Allowed to

purchase

credit

Not allowed

to purchase

credit

Not

determinable

All workers ................................................. 100 83 14 3

Worker characteristics

Management, professional, and related .... 100 85 12 3

Professional and related ........................ 100 86 11 3

Teachers ........................................... 100 91 6 1 ( )

Primary, secondary, and special 

education school teachers ........... 100 93 4 1 ( )

Service ...................................................... 100 80 17 3

Protective service .................................. 100 79 17 4

Sales and office ......................................... 100 80 18 2

Office and administrative support .......... 100 80 18 2

Natural resources, construction, and 

maintenance ............................................ 100 83 15 2

Production, transportation, and 

material moving ....................................... 100 80 15 4

Full time ..................................................... 100 84 13 3

Part time .................................................... 100 77 22 1 ( )

Union ......................................................... 100 75 22 2

Nonunion ................................................... 100 91 5 3

Average wage less than $15 per hour2 ..... 100 90 8 3

Average wage $15 per hour or higher2 ..... 100 82 16 3

Average wage less than $24 per hour2 ..... 100 84 14 3

Average wage $24 per hour or higher2 ..... 100 83 14 3

Establishment characteristics

Education and health services .................. 100 86 11 3

Educational services ............................. 100 87 11 3

Elementary and secondary schools .. 100 89 9 3

Junior colleges, colleges, and

universities ....................................... 100 79 20 1 ( )

Health care and social assistance ......... 100 76 20 1 ( )

Hospitals ............................................ 100 75 24 1 ( )

Public administration ................................. 100 78 18 4

1 to 99 workers .......................................... 100 84 12 1 ( )

1 to 49 workers ...................................... 100 81 13 1 ( )

50 to 99 workers .................................... 100 88 10 1 ( )

100 workers or more ................................. 100 83 14 3

100 to 499 workers ................................ 100 87 11 1 ( )

500 workers or more ............................. 100 82 15 3

State government ...................................... 100 76 20 4

Local government ...................................... 100 86 11 3

See footnotes at end of table.
47

Table 21. Defined benefit plans: Purchase of credits for prior government

service, State-sponsored plans, National Compensation Survey,

2007—Continued

(All workers participating in State-sponsored defined benefit plans = 100 percent)

Characteristics Total

Availability of credit

Allowed to

purchase

credit

Not allowed

to purchase

credit

Not

determinable

Geographic areas

New England ............................................. 100 80 19 1 ( )

Middle Atlantic ........................................... 100 66 34 –

East North Central ..................................... 100 96 1 ( ) 1 ( )

West North Central .................................... 100 71 19 1 ( )

South Atlantic ............................................ 100 99 1 ( ) 1 ( )

East South Central .................................... 100 92 – 1 ( )

West South Central ................................... 100 89 1 ( ) 10

Mountain .................................................... 100 98 1 ( ) 1 ( )

Pacific ........................................................ 100 58 42 1 ( )

1 These data do not meet publication criteria. 2 The wage breakouts are based on the average

wage for each occupation surveyed, which may include

workers both above and below the threshold. See the

Technical Note for more details.

NOTE: Dash indicates no workers in this category.

Because of rounding, sums of individual items may not

equal totals.
48

Table 22. Defined contribution plans:

Participation in types of plans1 with employer

contributions, State and local government

workers, National Compensation Survey, 2007

(All workers participating in defined contribution plans = 100

percent)

Characteristics Savings

and thrift

Money

purchase

pension

All workers ................................................. 32 70

Worker characteristics

Management, professional, and related .... 29 73

Professional and related ........................ 28 74

Teachers ........................................... 19 82

Primary, secondary, and special 

education school teachers ........... 39 61

Service ...................................................... 39 63

Protective service .................................. 39 64

Sales and office ......................................... 30 70

Office and administrative support .......... 31 70

Natural resources, construction, and 

maintenance ............................................ 35 64

Production, transportation, and 

material moving ....................................... 30 64

Full time ..................................................... 32 70

Part time .................................................... 27 67

Union ......................................................... 25 76

Nonunion ................................................... 36 66

Average wage less than $15 per hour2 ..... 34 67

Average wage $15 per hour or higher2 ..... 31 71

Average wage less than $24 per hour2 ..... 34 68

Average wage $24 per hour or higher2 ..... 29 72

Establishment characteristics

Education and health services .................. 27 75

Educational services ............................. 18 83

Elementary and secondary schools .. 28 73

Junior colleges, colleges, and

universities ....................................... 3 ( ) 94

Health care and social assistance ......... 49 54

Hospitals ............................................ 50 53

Public administration ................................. 34 68

1 to 99 workers .......................................... 22 73

1 to 49 workers ...................................... 3 ( ) 71

50 to 99 workers .................................... 3 ( ) 75

100 workers or more ................................. 33 69

100 to 499 workers ................................ 42 62

500 workers or more ............................. 31 71

State government ...................................... 26 78

Local government ...................................... 34 65

See footnotes at end of table.
49

Table 22. Defined contribution plans:

Participation in types of plans1 with employer

contributions, State and local government

workers, National Compensation Survey,

2007—Continued

(All workers participating in defined contribution plans = 100

percent)

Characteristics Savings

and thrift

Money

purchase

pension

Geographic areas

Middle Atlantic ........................................... 3 ( ) 89

East North Central ..................................... 34 81

West North Central .................................... 3 ( ) 66

South Atlantic ............................................ 43 58

East South Central .................................... 59 50

West South Central ................................... 23 74

Mountain .................................................... 3 ( ) 77

Pacific ........................................................ 26 74

1 The sum of savings and thrift

and money purchase pension

plans may exceed 100 percent

because some workers participate

in both types of plans. 2 The wage breakouts are

based on the average wage for

each occupation surveyed, which

may include workers both above

and below the threshold. See the

Technical Note for more details. 3 These data do not meet

publication criteria.
50

Table 23. Defined contribution plans: Plan sponsor,1

State and local government workers, National

Compensation Survey, 2007

(All workers participating in defined contribution plans = 100 percent)

Characteristics

State

government

sponsor

Local

government

sponsor

All workers ................................................. 71 35

Worker characteristics

Management, professional, and related .... 72 34

Professional and related ........................ 72 33

Teachers ........................................... 71 33

Primary, secondary, and special 

education school teachers ........... 73 34

Service ...................................................... 73 33

Protective service .................................. 74 29

Sales and office ......................................... 72 34

Office and administrative support .......... 70 35

Natural resources, construction, and 

maintenance ............................................ 57 46

Production, transportation, and 

material moving ....................................... 53 58

Full time ..................................................... 71 35

Part time .................................................... 65 37

Union ......................................................... 66 36

Nonunion ................................................... 73 34

Average wage less than $15 per hour2 ..... 75 35

Average wage $15 per hour or higher2 ..... 69 35

Average wage less than $24 per hour2 ..... 74 33

Average wage $24 per hour or higher2 ..... 67 37

Establishment characteristics

Education and health services .................. 69 38

Educational services ............................. 74 29

Elementary and secondary schools .. 59 46

Junior colleges, colleges, and

universities ....................................... 89 3 ( )

Health care and social assistance ......... 58 57

Hospitals ............................................ 58 60

Public administration ................................. 75 28

1 to 99 workers .......................................... 72 32

1 to 49 workers ...................................... 61 44

50 to 99 workers .................................... 81 3 ( )

100 workers or more ................................. 71 36

100 to 499 workers ................................ 65 46

500 workers or more ............................. 72 33

State government ...................................... 99 3 ( )

Local government ...................................... 55 51

See footnotes at end of table.
51

Table 23. Defined contribution plans: Plan sponsor,1

State and local government workers, National

Compensation Survey, 2007—Continued

(All workers participating in defined contribution plans = 100 percent)

Characteristics

State

government

sponsor

Local

government

sponsor

Geographic areas

Middle Atlantic ........................................... 45 55

East North Central ..................................... 87 29

West North Central .................................... 69 3 ( )

South Atlantic ............................................ 82 22

East South Central .................................... 68 42

West South Central ................................... 68 41

Mountain .................................................... 76 32

Pacific ........................................................ 66 38

1 Based on the sponsorship of the

benefit plan rather than the affiliation of

the employees participating. For

example, many local school district

workers belong to State-sponsored

retirement plans. State-sponsored

benefits can be partially or totally State

funded. The sum of State and local

government-sponsored plans may

exceed 100 percent because some

workers participate in both types of

plans. 2 The wage breakouts are based

on the average wage for each

occupation surveyed, which may

include workers both above and below

the threshold. See the Technical Note

for more details. 3 These data do not meet

publication criteria.
52

Table 24. Selected defined contribution plans: Summary of provisions, State and local government workers,

National Compensation Survey, 2007

(All workers participating in selected defined contribution plans = 100 percent)

Characteristics

Pretax

contributions

allowed

Transfer or

rollover

contributions

allowed

Employee choice of

investments

Immediate

full vesting

Loans

permitted

Withdrawals

For permitted

employee

contributions

For

employer

contributions

All workers ................................................. 76 65 62 72 53 22 24

Worker characteristics

Management, professional, and related .... 77 64 64 72 59 23 21

Professional and related ........................ 78 63 65 72 59 24 20

Teachers ........................................... 79 65 67 70 69 21 11

Primary, secondary, and special 

education school teachers ........... 76 69 48 57 50 9 13

Service ...................................................... 72 62 58 69 47 22 29

Protective service .................................. 70 55 55 67 51 24 29

Sales and office ......................................... 81 67 64 73 54 20 24

Office and administrative support .......... 80 65 62 71 52 18 22

Natural resources, construction, and 

maintenance ............................................ 70 71 63 75 43 24 34

Production, transportation, and 

material moving ....................................... 75 66 66 77 28 18 31

Full time ..................................................... 76 65 63 72 54 22 24

Part time .................................................... 78 52 60 63 41 22 28

Union ......................................................... 75 77 54 62 64 25 12

Nonunion ................................................... 76 57 67 77 47 21 31

Average wage less than $15 per hour1 ..... 76 60 63 76 38 19 30

Average wage $15 per hour or higher1 ..... 76 66 62 70 58 23 22

Average wage less than $24 per hour1 ..... 77 64 63 73 47 21 26

Average wage $24 per hour or higher1 ..... 74 65 62 70 62 24 21

Establishment characteristics

Education and health services .................. 76 63 67 74 58 23 20

Educational services ............................. 73 62 66 73 71 19 11

Elementary and secondary schools .. 78 72 58 66 63 25 11

Junior colleges, colleges, and

universities ....................................... 68 51 74 79 79 14 12

Health care and social assistance ......... 82 65 68 78 30 32 37

Hospitals ............................................ 78 72 67 80 2 ( ) 36 37

Public administration ................................. 73 65 53 64 48 22 26

1 to 99 workers .......................................... 77 65 55 66 41 22 24

1 to 49 workers ...................................... 80 54 67 77 28 22 21

50 to 99 workers .................................... 75 74 45 56 53 22 27

100 workers or more ................................. 76 65 64 73 55 22 24

100 to 499 workers ................................ 82 60 64 73 39 18 28

500 workers or more ............................. 74 66 64 72 60 24 23

State government ...................................... 73 59 67 78 66 14 21

Local government ...................................... 78 68 60 68 46 27 26

See footnotes at end of table.
53

Table 24. Selected defined contribution plans: Summary of provisions, State and local government workers,

National Compensation Survey, 2007—Continued

(All workers participating in selected defined contribution plans = 100 percent)

Characteristics

Pretax

contributions

allowed

Transfer or

rollover

contributions

allowed

Employee choice of

investments

Immediate

full vesting

Loans

permitted

Withdrawals

For permitted

employee

contributions

For

employer

contributions

Geographic areas

New England ............................................. 91 99 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( )

Middle Atlantic ........................................... 78 67 83 89 80 45 2 ( )

East North Central ..................................... 89 57 88 96 2 ( ) 16 9

West North Central .................................... 84 67 85 88 2 ( ) 2 ( ) 2 ( )

South Atlantic ............................................ 61 77 60 77 74 21 36

East South Central .................................... 85 61 73 71 57 40 47

West South Central ................................... 80 32 40 58 2 ( ) 2 ( ) 2 ( )

Mountain .................................................... 86 82 75 77 66 2 ( ) 2 ( )

Pacific ........................................................ 72 64 32 38 67 18 25

1 The wage breakouts are based on the average wage for each occupation

surveyed, which may include workers both above and below the threshold. See

the Technical Note for more details. 2 These data do not meet publication criteria.
54

Table 25. Selected defined contribution plans: Eligibility requirements, State and local government

workers, National Compensation Survey, 2007

(All workers participating in selected defined contribution plans = 100 percent)

Characteristics Total

With

minimum

age or

service

requirement

Service requirements No minimum

age or

service

requirement

Not

Less than 12 determinable

months 12 months

All workers ................................................. 100 27 15 11 72 1

Worker characteristics

Management, professional, and related .... 100 27 15 11 72 1

Professional and related ........................ 100 27 15 11 72 1 ( )

Teachers ........................................... 100 20 1 ( ) 5 80 –

Primary, secondary, and special 

education school teachers ........... 100 1 ( ) 1 ( ) 1 ( ) 74 –

Service ...................................................... 100 25 14 10 75 1 ( )

Protective service .................................. 100 14 1 ( ) 1 ( ) 86 –

Sales and office ......................................... 100 36 22 12 64 1 ( )

Office and administrative support .......... 100 37 23 12 62 1 ( )

Natural resources, construction, and 

maintenance ............................................ 100 1 ( ) 1 ( ) 1 ( ) 83 –

Production, transportation, and 

material moving ....................................... 100 31 1 ( ) 1 ( ) 69 –

Full time ..................................................... 100 27 16 11 72 1 ( )

Part time .................................................... 100 30 1 ( ) 18 65 1 ( )

Union ......................................................... 100 33 1 ( ) 10 66 1 ( )

Nonunion ................................................... 100 24 11 11 75 1 ( )

Average wage less than $15 per hour2 ..... 100 34 18 15 64 1 ( )

Average wage $15 per hour or higher2 ..... 100 25 14 10 75 1 ( )

Average wage less than $24 per hour2 ..... 100 32 17 14 67 1 ( )

Average wage $24 per hour or higher2 ..... 100 21 14 7 78 1 ( )

Establishment characteristics

Education and health services .................. 100 30 14 14 69 1 ( )

Educational services ............................. 100 21 1 ( ) 9 79 1 ( )

Elementary and secondary schools .. 100 1 ( ) 1 ( ) 1 ( ) 80 1 ( )

Junior colleges, colleges, and

universities ....................................... 100 23 1 ( ) 1 ( ) 77 –

Health care and social assistance ......... 100 49 23 23 49 1 ( )

Hospitals ............................................ 100 44 1 ( ) 26 56 –

Public administration ................................. 100 19 1 ( ) 1 ( ) 80 1 ( )

1 to 99 workers .......................................... 100 33 1 ( ) 1 ( ) 65 1 ( )

1 to 49 workers ...................................... 100 33 1 ( ) 1 ( ) 66 1 ( )

50 to 99 workers .................................... 100 33 1 ( ) 1 ( ) 64 1 ( )

100 workers or more ................................. 100 26 16 10 73 1 ( )

100 to 499 workers ................................ 100 42 29 13 57 1 ( )

500 workers or more ............................. 100 22 12 9 78 1 ( )

State government ...................................... 100 26 1 ( ) 15 74 –

Local government ...................................... 100 28 18 9 71 1

See footnotes at end of table.
55

Table 25. Selected defined contribution plans: Eligibility requirements, State and local government

workers, National Compensation Survey, 2007—Continued

(All workers participating in selected defined contribution plans = 100 percent)

Characteristics Total

With

minimum

age or

service

requirement

Service requirements No minimum

age or

service

requirement

Not

Less than 12 determinable

months 12 months

Geographic areas

Middle Atlantic ........................................... 100 1 ( ) 1 ( ) 1 ( ) 95 –

East North Central ..................................... 100 15 1 ( ) 9 85 –

South Atlantic ............................................ 100 12 7 1 ( ) 88 –

East South Central .................................... 100 22 1 ( ) 1 ( ) 78 –

West South Central ................................... 100 1 ( ) 1 ( ) 1 ( ) 78 –

Mountain .................................................... 100 1 ( ) 1 ( ) 1 ( ) 71 1 ( )

Pacific ........................................................ 100 63 43 1 ( ) 33 1 ( )

1 These data do not meet publication criteria. 2 The wage breakouts are based on the average wage for each

occupation surveyed, which may include workers both above and below

the threshold. See the Technical Note for more details.
56

Table 26. Money purchase pension plans: Employer contributions, State and local government

workers, National Compensation Survey, 2007

(All workers participating in money purchase pension plans = 100 percent)

Characteristics Total

Fixed

percent of

earnings

Fixed percent of earnings

Other1

10th

percentile

25th

percentile

50th

percentile

(median)

75th

percentile

90th

percentile

All workers ................................................. 100 65 3.00 5.00 6.75 9.00 13.25 35

Worker characteristics

Management, professional, and related .... 100 61 3.00 5.00 6.75 9.00 11.30 39

Professional and related ........................ 100 61 3.00 5.00 6.75 9.00 11.30 39

Teachers ........................................... 100 59 3.00 5.00 8.00 9.29 11.30 41

Primary, secondary, and special 

education school teachers ........... 100 55 1.50 3.00 3.00 8.50 9.00 45

Service ...................................................... 100 77 2.00 3.00 5.75 10.00 15.00 23

Protective service .................................. 100 84 2.00 3.00 5.75 12.00 20.00 16

Sales and office ......................................... 100 63 3.00 5.00 6.75 9.00 14.00 37

Office and administrative support .......... 100 61 3.00 5.00 6.75 9.00 14.00 39

Natural resources, construction, and 

maintenance ............................................ 100 68 1.50 5.00 5.00 9.00 14.00 32

Production, transportation, and 

material moving ....................................... 100 76 3.00 3.00 5.00 6.90 9.00 2 ( )

Full time ..................................................... 100 65 3.00 5.00 6.75 9.00 14.00 35

Part time .................................................... 100 87 1.50 3.75 5.00 6.90 10.00 2 ( )

Union ......................................................... 100 42 2.00 3.00 5.00 8.00 10.00 58

Nonunion ................................................... 100 81 3.00 5.00 6.75 9.29 14.00 19

Average wage less than $15 per hour3 ..... 100 74 3.00 5.00 6.75 9.00 12.00 26

Average wage $15 per hour or higher3 ..... 100 63 2.00 5.00 6.75 9.29 14.00 37

Average wage less than $24 per hour3 ..... 100 68 3.00 5.00 6.75 9.00 14.00 32

Average wage $24 per hour or higher3 ..... 100 63 2.00 5.00 6.75 9.29 11.30 37

Establishment characteristics

Education and health services .................. 100 62 3.00 5.00 6.90 9.00 10.40 38

Educational services ............................. 100 63 3.00 5.00 7.50 9.29 10.50 37

Elementary and secondary schools .. 100 41 2.50 3.00 5.75 9.00 9.00 59

Junior colleges, colleges, and

universities ....................................... 100 79 5.00 5.00 8.00 9.29 11.30 2 ( )

Health care and social assistance ......... 100 59 3.00 3.00 5.00 6.75 7.00 2 ( )

Hospitals ............................................ 100 54 3.00 3.00 5.00 6.75 8.50 2 ( )

Public administration ................................. 100 69 2.00 3.00 5.00 9.00 15.00 31

1 to 99 workers .......................................... 100 68 3.00 5.00 6.75 12.00 14.00 32

1 to 49 workers ...................................... 100 82 5.00 5.00 6.90 14.00 14.05 18

50 to 99 workers .................................... 100 56 3.00 4.00 6.75 12.00 14.00 44

100 workers or more ................................. 100 65 2.50 5.00 6.64 9.00 11.30 35

100 to 499 workers ................................ 100 77 3.00 5.00 5.75 7.50 10.40 2 ( )

500 workers or more ............................. 100 62 2.00 5.00 6.75 9.00 11.30 38

State government ...................................... 100 70 3.00 5.00 6.00 9.29 11.30 2 ( )

Local government ...................................... 100 62 3.00 5.00 6.75 9.00 14.00 38

See footnotes at end of table.
57

Table 26. Money purchase pension plans: Employer contributions, State and local government

workers, National Compensation Survey, 2007—Continued

(All workers participating in money purchase pension plans = 100 percent)

Characteristics Total

Fixed

percent of

earnings

Fixed percent of earnings

Other1

10th

percentile

25th

percentile

50th

percentile

(median)

75th

percentile

90th

percentile

Geographic areas

Middle Atlantic ........................................... 100 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 2 ( ) 66

East North Central ..................................... 100 90 3.00 3.00 3.00 10.00 14.00 2 ( )

South Atlantic ............................................ 100 77 5.00 5.00 7.25 9.00 20.00 2 ( )

East South Central .................................... 100 78 4.00 5.00 7.50 11.30 11.30 2 ( )

West South Central ................................... 100 79 6.50 6.75 8.50 12.00 14.00 2 ( )

Mountain .................................................... 100 80 1.00 1.50 5.00 6.90 8.00 2 ( )

Pacific ........................................................ 100 52 2.00 3.75 5.00 5.00 7.50 48

1 Includes other plans in which employer contribution varies or is not

expressed as a percent of earnings. 2 These data do not meet publication criteria.

3 The wage breakouts are based on the average wage for each

occupation surveyed, which may include workers both above and below

the threshold. See the Technical Note for more details.
58

T he data in this release are from the National Compensation Survey (NCS), conducted by the U.S.

Department of Labor’s Bureau of Labor Statistics (BLS). The

release provides information on detailed provisions of

defined benefit and defined contribution plans for workers

in State and local government. The Federal government is

excluded from the scope of the survey. The period for

compiling these data was from June 2006 to September 2007;

thus, they have a 2007 reference date. Previous publications

containing detailed information on health and retirement

plans for private industry workers are available on the BLS

Web site http://www.bls.gov/ncs/ebs.

Under the NCS program, information on the incidence and

provision of benefits is published in several stages. An earlier

summary provided data on the incidence of (access to and

participation in) selected benefits and detailed provisions of

paid holidays, life insurance plans, and some other benefit

plans, as well as on employer and employee shares of

contributions to medical care premiums and their average

amounts. Data for civilian, private industry, and State and

local government workers for March 2008 will be issued later

this year.

Calculation details

Averages for occupations within an establishment were used

to produce estimates for worker groups averaging hourly

pay below $15, those averaging $15 and above, those

averaging below $24, and those averaging $24 and above.

Individual workers can fall into an earnings category different

from the average for an occupation and establishment into

which they are classified. The wage breakouts are based on

the average wage for each occupation surveyed, which may

include workers both above and below the threshold. The

$15-per-hour value enables a comparison with the previously

published estimates in the private sector. The $24-per-hour

value is based on the average wage of State and local

government workers published in National Compensation

Survey: Occupational Earnings in the United States, 2006,

U.S. Department of Labor, September 2007, bulletin 2590, at

http://www.bls.gov/ncs/ncswage.htm.

Survey response

The 2007 benefits survey included the following numbers of

establishments in the sample:

Technical Note

Survey scope

The 2007 NCS benefits survey represented about 18.9 million

State and local government workers. (See Appendix table 1

for additional information.) For State and local governments,

an establishment is defined as an agency or entity such as a

school district, college, university, hospital, nursing home,

administrative body, court, police department, fire

department, health or social service operation, highway

maintenance operation, urban transit operation, or other

governmental unit. An establishment provides services under

the authority of a specific State or local government

organization within a defined geographic area or jurisdiction.

Establishments are classified under the 2002 North American

Industry Classification System (NAICS). The survey sample

weights were adjusted to reflect the March 2007 employment

figures from the Quarterly Census of Employment and Wages

(QCEW) program.

The nine census divisions are defined as follows: New

England—Connecticut, Maine, Massachusetts, New

Hampshire, Rhode Island, and Vermont; Middle Atlantic—

New Jersey, New York, and Pennsylvania; East North

Central—Illinois, Indiana, Michigan, Ohio, and Wisconsin;

West North Central—Iowa, Kansas, Minnesota, Missouri,

Nebraska, North Dakota, and South Dakota; South

Atlantic—Delaware, District of Columbia, Florida, Georgia,

Maryland, North Carolina, South Carolina, Virginia, and West

Virginia; East South Central—Alabama, Kentucky,

Mississippi, and Tennessee; West South Central—

Arkansas, Louisiana, Oklahoma, and Texas; Mountain—

Arizona, Colorado, Idaho, Montana, Nevada, New Mexico,

Utah, and Wyoming; and Pacific—Alaska, California,

Hawaii, Oregon, and Washington.

Sample design and data collection

The sample for this survey was selected by means of a threestage design. The first stage involved the selection of areas.

The NCS State and local government sample consists of 152

areas that represent the Nation’s 361 metropolitan statistical

areas, 573 micropolitan statistical areas as defined by the

Office of Management and Budget in June 2003, and the

remaining portions of the 50 States. For a current list of

these statistical areas, visit http://www.census.gov/population/

www/estimates/metroarea.html.

In the second stage, the sample of establishments was

drawn by first stratifying the sampling frame by industry

and, implicitly, by establishment size. The number of sample

establishments allocated to each stratum is approximately

proportional to the employment in the stratum. Each

establishment sampled was selected within a stratum with a

probability proportional to its employment. The use of this

technique means that the larger an establishment’s

employment, the greater is its chance of selection. Weights

 Establishments Total

Total in sampling frame 206,918

Total in sample 2,012

Responding 1,720

Out of business or out of scope 21

Unable or refused to provide data 271
59

were applied to each establishment when the data were

tabulated, so that each establishment represents similar (in

terms of industry and employment size) units in the economy

that were not selected for collection.

The third stage of sample selection was the drawing of a

probability sample of occupations within a sampled

establishment. Identification of the occupations for which

data were to be collected was a four-step process:

1. Probability-proportional-to-size selection of

estabished jobs

2. Classification of jobs into occupations based on the

2000 Standard Occupational Classification (SOC)

system

3. Characterization of jobs as full time versus part time,

union versus nonunion, and time versus incentive

4. Determination of the level of work of each job

Definition of terms

Full-time worker. Any employee whom the employer

considers to be full time.

Part-time worker. Any employee whom the employer

considers to be part time.

Nonunion worker. Any employee in an occupation not

meeting the conditions for union coverage.

Union worker. Any employee is in a union occupation when

all of the following conditions are met:

• A labor organization is recognized as the bargaining

agent for all workers in the occupation

• Wage and salary rates are determined through

collective bargaining or negotiations

• Settlement terms, which must include earnings

provisions and may include benefit provisions, are

embodied in a signed, mutually binding collective

 bargaining agreement

For additional technical information, consult the BLS

Handbook of Methods, available online at the Internet site

http://www.bls.gov/opub/hom/home.htm.

Survey estimation methods

The survey design uses an estimator that assigns a weight

to each sample unit. The weight is computed with the use of

the inverse of the probability of selection at each stage of

sample selection and with the use of four weight adjustment

factors.

 The first factor adjusts for establishment nonresponse

and the second factor adjusts for occupational nonresponse.

The third factor adjusts for any special situations that may

have occurred during data collection. The fourth factor,

poststratification, also called benchmarking, is introduced

to adjust the estimated employment totals to actual counts

of employment by industry for the survey reference date.

The general form of the estimator for a population total Y is

 1 1

231 ,

n Oi

ij ij i ii

i j i ij

fff Y f Y = = P P = ∑ ∑

 where

 n = number of responding sample establishments;

oi = occupation sample size selected from the ith 

establishment;

Yij = value for the characteristics of the jth selected

occupation in the ith selected establishment;

Pi = probability of including the ith establishment in

the sample;

Pij = probability of including the jth occupation in the

sample of occupations from the ith establishment;

f

ij = weight adjustment factor for occupation

nonresponse for the jth occupation in the ith

establishment;

f1i = weight adjustment factor for establishment

nonresponse for the ith establishment;

f2i = weight adjustment factor for any special situation

that may have occurred during data collection for

the ith establishment;

f3i = poststratification weight adjustment factor for the

ith establishment.

Appropriate employment or establishment totals are used to

calculate the proportion, mean, or percentage desired.

Reliability of estimates

The statistics in this summary are estimates derived from a

sample of usable occupation quotes selected from the

establishments responding. They are not tabulations based

on data from all employees in establishments within the scope

of the survey. Consequently, the data are subject to sampling

and nonsampling errors.

Sampling errors are the differences that can arise between

results derived from a sample and those computed from

observations of all units in the population being studied.

The sample used here is one of a number of possible samples

of the same size that could have been selected under the

same sample design. Estimates derived from the different

samples would differ from one another.

A measure of the variation among these differing estimates
60

is the standard error, which can be used to measure the

precision with which an estimate from a particular sample

approximates the expected result of all possible samples.

The chances are about 68 out of 100 that an estimate from

the survey differs from a complete population figure by less

than the standard error. The chances are about 90 out of 100

that this difference would be less than 1.6 times the standard

error. The statements of comparison appearing in this

publication are significant at a 1.6-standard level or better.

This means that, for differences cited, the estimated difference

is greater than 1.6 times the standard error of the difference.

Standard errors can be used to evaluate published series. To

assist users in ascertaining the reliability of series, the

standard errors for all estimates are available on the Web

site http://www.bls.gov/ncs/ebs/ebsvar.htm.

Nonsampling errors also affect survey results. They can

be attributed to many sources, such as inability to obtain

information on some establishments; difficulties with survey

definitions; inability of the respondents to provide correct

information; and mistakes in recording or coding the data

obtained. Although not specifically measured, the

nonsampling errors were expected to be minimal due to the

extensive training of the field economists who gathered the

survey data, computer edits of the data, and a detailed data

review.

For research articles on employee benefits, see the

Monthly Labor Review, August 2004 at the BLS Web site

http://www.bls.gov/opub/mlr/mlrhome.htm. For more detailed

information on the SOC classification system, visit http://

www.bls.gov/soc/home.htm.

Additional information about the NCS may be obtained

by calling (202) 691–6199. You may also write to the U.S.

Bureau of Labor Statistics, Division of Compensation Data

Analysis and Planning, 2 Massachusetts Ave., NE, Room

4175, Washington, D.C. 20212–0001, or send e-mail to

NCSinfo@bls.gov. The data contained in this summary are

available as well at http://www.bls.gov/ncs. Users may access

benefits data from previous surveys through a variety of

tools available on the same page. Material in this summary is

in the public domain and, with appropriate credit, may be

reproduced without permission. The information will be made

available to sensory-impaired individuals upon request.

Voice telephone: (202) 691–5200; Federal Relay Service:

1–800–877–8339.
61

Appendix table 1. Number of workers1 represented,

National Compensation Survey, 2007

Occupational group2

State and local

government

workers

All workers ......................................................... 18,892,000

Management, professional, and related ............ 10,390,100

Professional and related ................................ 8,800,500

Teachers .................................................... 4,841,100

Primary, secondary, and special 

education school teachers ................... 3,605,500

Service ............................................................... 4,020,700

Protective service .......................................... 1,813,900

Sales and office ................................................. 2,752,600

Office and administrative support .................. 2,612,000

Natural resources, construction, and 

maintenance .................................................... 957,400

Production, transportation, and 

material moving ................................................ 771,200

1 The number of workers

represented by the survey are

rounded to the nearest 100.

Estimates of the number of workers

provide a description of the size and

composition of the labor force

included in the survey. Estimates

are not intended, however, for

comparison to other statistical series

to measure employment trends or

levels. 2 The 2000 Standard

Occupational Classification system is

used to classify workers.
62

R etirement plans are classified as either defined benefit or defined contribution plans. Defined benefit plans

determine payments according to a fixed formula based on

salary, years of service, and age. Defined contribution plans

determine payouts on the basis of the amount of money

contributed and the rate of return on the money invested.

Defined Benefit Plans

Defined benefit pension plans provide employees with

guaranteed retirement benefits based on predetermined

benefit formulas. A participant’s retirement age, length of

service, and preretirement earnings may affect the benefits

received. Definitions, key provisions, and related terms

follow.

Traditional plan formulas

Terminal earnings. Benefits are based on a percentage of

average earnings during a specified number of years at the

end of a worker’s career (or when earnings are the highest),

multiplied by the number of years of service recognized by

the plan.

Career-earnings formulas. Benefits are based on a

percentage of an average of career earnings for every year

of service recognized by the plan.

Dollar amount formulas. Benefits are based on a dollar

amount per month for each year of service recognized by the

plan.

Normal and early retirement

Normal retirement. The age at which plan participants can

retire and receive all accrued benefits.

Early retirement. The age (or a combination of age and

service) at which plan participants can retire and receive all

accrued benefits, less a reduction for the years prior to their

normal retirement age.

Benefit payment methods

Payments from defined benefit plans may be in the form of a

straight-life annuity, a joint-and-survivor annuity, a

percentage of the unreduced accrued benefit, or a lump sum.

Straight-life annuity. A periodic payment made for the life of

the retiree, with no additional payments to survivors.

Joint-and-survivor annuity. The Employee Retirement

Income Security Act of 1974 (ERISA) requires defined benefit

pension plans that offer an annuity as a payment option to

provide a qualified joint-and-survivor annuity (QJSA) as

the normal benefit payment for married participants. A QJSA

consists of an immediate annuity for the life of the participant

and a survivor annuity for the life of the participant’s spouse.

The amount of the survivor annuity may not be less than 50

percent or more than 100 percent of the amount payable

during the time that the participant and spouse are both

alive. The annuity payable for the life of the participant is

lower than that for a straight-life annuity. To account for the

increased length of time over which payments will be made,

this reduction may be a percentage of the straight-life benefit,

such as 10 percent, or may be based on the life expectancy

of the participant and spouse (the so-called actuarial

reduction).

Percent of unreduced accrued benefit. Under this method,

the participant’s pension is not reduced to adjust for survivor

benefits. The participant will receive an amount equal to the

straight-life annuity, and the spouse will receive a proportion

of that amount, often 50 percent, should the participant die.

Lump-sum payment. The participant may opt for a full lump

sum, with no further benefits received from the plan. If a plan

provides for a partial lump-sum payment, the participant will

usually receive a reduced annuity as well.

Vesting

Vesting refers to the amount of time a participant must work

before earning a nonforfeitable right to a retirement benefit.

Once the participant is vested, the accrued benefit is retained

even if the worker leaves the employer before reaching

retirement age.

Cliff vesting. No vesting occurs until an employee satisfies

the service requirements for 100-percent vesting—for

example, after 5 years.

Graded vesting. An employee’s nonforfeitable percentage

of employer contributions increases over time until it reaches

100 percent.

Integration with Social Security

Defined benefit plans may “integrate” retirement benefits

with Social Security benefits. Under this approach, the

employer’s contribution to Social Security (FICA taxes) is

taken into account in computing plan benefits. Integration

may be accomplished by one of several methods.

Offset. Part of a participant’s Social Security benefit is

Appendix A. Retirement

Income Benefits
63

subtracted from the benefit otherwise payable by the plan.

The maximum allowable offset is 83.3 percent of the Social

Security benefit. The most common offset is 50 percent.

Social Security breakpoint. A formula that applies a lower

benefit rate to earnings subject to FICA (Social Security)

taxes.

Portability

Portability is a participant’s ability to maintain and transfer

accumulated pension benefits when changing jobs.

Portability provisions in defined benefit plans generally cover

portability of assets, portability of credited service, or both.

Portability of assets. Participants can withdraw their

accumulated pension benefits, transfer them to another

retirement arrangement, or both.

Portability of credited service. Participants are allowed to

count the years of service with a previous employer in

determining benefits from a subsequent employer.

Purchase of credits for prior government service

Some employers allow the purchase of service credits for

prior service in Federal, State, or local government agencies.

A service requirement, such as a minimum of 5 years following

the purchase or credit, may be imposed. The cost is a lumpsum payment equal to the full actuarial value of the credit

purchased.

Plan sponsorship

State-sponsored plans can be partially or totally State

funded. Many local school district workers belong to Statesponsored retirement plans.

Disability retirement

Disability retirement is retirement resulting from a totally

disabling injury or illness prior to eligibility for early or normal

retirement. Plans providing disability retirement benefits may

have a service requirement of 10 years or more. Benefits may

be immediate or deferred.

Defined Contribution Plans

Defined contribution plans are retirement plans that specify

the level of employer contributions and place those

contributions into individual employee accounts.

Types of plans

Savings and thrift plans. These are retirement plans under

which employees may contribute a predetermined portion of

(usually pretax) earnings to an individual account, all or part

of which the employer matches. Employers may match a fixed

percentage of employee contributions or a percentage that

varies by length of service, amount of employee contribution,

or other factors. Contributions are invested as directed by

the employee or employer. Although usually designed as a

long-term savings vehicle, savings and thrift plans may allow

preretirement withdrawals and loans.

Money purchase pension plans. These are retirement plans

under which fixed employer contributions, typically

calculated as a percentage of employee earnings, are

allocated to individual employee accounts. Some plans may

allow employee contributions, but employees are usually

not required to make any contributions.

Investment choices

Employees may be allowed to choose how to invest their

own and their employer’s contributions. Common investment

choices are common stock fund, fixed interest securities,

diversified investments, and money market funds.

Pretax contributions

The Internal Revenue Code (IRC) plan allows employees to

make pretax contributions to deferred compensation plans

through salary reduction agreements. Taxes are deferred until

the benefits are disbursed.

Withdrawals and loans

Withdrawals. Prior to normal payout (usually at retirement),

defined contribution plan participants may be allowed to

withdraw all or a portion of the employer funds from their

accounts. While most early withdrawals incur tax penalties,

hardship withdrawals do not. To avoid tax penalties, many

plans have loan provisions that allow employees to borrow

from their accounts, with interest, for a specified period.

Loans. Defined contribution plans may allow participants to

borrow employer funds, with interest, from their accounts.

Loan amounts often are limited to a portion of the account

balance and usually have to be repaid within 5 years, but

longer payment periods may apply for home purchase or

renovation loans.

Transfers or rollovers. A rollover is a direct payment of plan

benefits from a defined contribution plan into an IRA or

another employer’s plan. In a direct rollover, the employee is

not taxed on the payment until it is later withdrawn or

distributed.

Employer contribution methods

Fixed percent of earnings. Common in money purchase

plans, the employer contributes a fixed percentage of each

employee’s earnings to his or her individual account.

Specified matching percent. The employer matches a

specified percentage of the employee contribution. The

percentage can vary by length of service, amount of

employee contribution, and other factors.