Recruitment and Retention in the Public Sector: The Role of Pensions

Abstract

Employers and employees alike have long appreciated the role that retirement plans play as part of a competitive compensation package. In the public sector, defined benefit (DB) pensions play an especially important role in human resource strategies. DB pensions have been shown to be an effective retention tool, and government employers are well suited to offer them. Traditional pensions are also highly valued by public sector employees. Because these systems serve employees, employers, and taxpayers well, the public sector is unlikely to mimic the trend away from DB pensions witnessed in the private sector.