NEWS RELEASE

July 10, 2008
PR-08/11
For additional information:
Jason Hammersla
202-289-6700

Survey: employee retirement brings new challenges

WASHINGTON, D.C. — A new survey of recent retirees, released today, illustrates the modern challenges for employers seeking to retain highly skilled workers in the face of major economic and demographic shifts. Among the key findings: half of retirees with a defined benefit pension stated that receiving a full pension while working part time would have been effective in delaying their retirement (50 percent) and almost as many feel the same about receiving a partial pension while working part time (44 percent).

"The results of this survey underscore employers’ necessity to have flexibility and creativity in designing compensation packages for their employees, especially those workers who are so crucial to their core business," said American Benefits Council President James A. Klein. "Phased retirement incentives, if properly enacted by federal lawmakers, could help address this need."

The survey, designed by Mathew Greenwald & Associates, a Washington-based market research firm and developed jointly by Employee Benefit Research Institute (EBRI) and HR Policy Association along with the Council, received responses from 4,981 workers in aerospace and defense industry companies who retired in 2003 or later and are now between the ages of 55 and 65.

"The overwhelming response from former employees not only demonstrates the profound importance of the retirement decision, but suggests that American companies are currently experiencing a severe ‘brain drain’ from industries that demand a steady influx of desired talent," Klein said. "Public policy must support national enterprise and innovation by encouraging employers and vital employees to extend their working relationship."

The Council and HR Policy Association have formed a phased retirement initiative to promote flexible retirement programs and the role they play in meeting the needs of both workers and employers, as well as in bolstering the economy and relieving burdens on government programs. "Under current law, there are certain obstacles to the ability of employers to implement these ‘win-win’ programs and, as the population ages, the disconnect between the law and the needs of the workplace will expand," the groups wrote in February 28, 2007, testimony before the Senate Special Aging Committee.

"Employers are already experimenting within the existing framework to facilitate the retention of top talent and the survey results indicate that there are some techniques employers can use now to entice valued workers to stay longer," Klein said. "As lawmakers consider a number of employment classification and compensation measures in the next Congress, we urge them to provide employers with the flexibility they need to keep their best and brightest employees — and keep their edge in the global economy."

The EBRI Issue Brief and report of findings is available here.

The HR Policy Association press release is available here.

To arrange an interview with Klein or another Council staff member, please contact Jason Hammersla, Council director, communications, at jhammersla@abcstaff.org or by phone at (202) 289-6700.

The American Benefits Council is the national trade association for companies concerned about federal legislation and regulations affecting all aspects of the employee benefits system. The Council's members represent the entire spectrum of the private employee benefits community and either sponsor directly or administer retirement and health plans covering more than 100 million Americans.