Furthermore, integrated pensions are estimated to have higher replacement rates than those of nonintegrated pension plans at high earnings levels and lower rates at low earnings levels.(13)
When all of the restrictions on the data are taken into account, there are 2,197 worker-pension observations, 1,375 of which are covered by a non, integrated pension and 822 by an integrated pension.(20) Of those with integrated pensions, 502 have excess-rate provisions, while 387 have offset provisions.(21)
Separate weighted regressions are run for-the samples of workers with nonintegrated and integrated pensions wherein the dependent variable is the replacement rate or annual benefits.
The tenure effect, conversely, is smaller than for nonintegrated plans, with a year's increase in tenure resulting in an increase of 0.67 percentage point in the replacement rate for all integrated pensions.
Integrated pensions have higher replacement rates only at the lowest tenure level (10 years).
Bender, "Characteristics of Individuals with Integrated Pensions," Social Security Bulletin, vol.
(5) See Bender, "Individuals with Integrated Pensions."
(14) See Slusher, "Pension Integration," and Bender, "Individuals with Integrated Pensions."
(28) One of the findings from Bender, "Individuals with Integrated Pensions," is that a worker is more likely to have an integrated pension if he or she has more than one pension.