Working Paper - Urban Institute

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calculated, MINT calculates SSI eligibility and projects participation and benefits for eligible participants. Finally, MINT calculates annual state and federal income taxes from federal and state tax calculators and additional data from a statistical match with an enhanced Statistics of Income (SOI) file. The statistical match uses a minimum distance function. The key match variables are filing status, age of family head, wage and salary earnings, self-employment earnings, pension income, Social Security benefits, home equity, and financial assets. The enhanced SOI is used as the data source for interest, dividends, rental income, and itemized deductions; these variables are needed for calculation of income tax liabilities. The enhanced SOI file used with MINT is based on the 2001 SOI statistically matched to the 1996 SIPP to add home equity, financial assets, and age. This match uses a minimum distance function that includes filing status, state, number of exemptions, wage and salary income, self-employment income, Social Security income, pension income, IRA distributions, interest, dividends, rental income, alimony, and unemployment compensation. This report calculates asset income based on the annuity that families could purchase from 80 percent of financial assets. MINT uses this annuity income to calculate retirement income; not the SOI imputed interest, dividends, and rental income. MINT uses the potential annuity instead of capital income from assets as an income measure to treat families with DC pensions in a comparable fashion as families with DB pensions. The potential annuity amount will exceed the return on capital—interest, dividends, and rental income—because the annuity includes repayment of principal in addition to capital income. This places the measured income The Disappearing Defined Benefit Pension 46
from DC accounts on an equivalent scale with reported DB pension income, which includes both the return on assets and repayment of principal. MINT projects income and demographic transitions annually from the SIPP interview year until the earlier of emigration, institutionalization, death, or 2099. The earnings and benefit status come directly from the administrative data through 2004. Per capita income and assets depend on economic and demographic (marriage, divorce, and death) changes over the period. 47 The Retirement Policy Program
Page 1 and 2:
The Disappearing Defined Benefit Pe
Page 3: The Retirement Policy Program A cro
Page 6 and 7: Tables 1. Projected Characteristics
Page 9 and 10: Abstract The long-term shift in cov
Page 11 and 12: Key findings include the following:
Page 13 and 14: Introduction The percentage of work
Page 15 and 16: Traditional DB plans provide worker
Page 17 and 18: from retirement plans have accelera
Page 19 and 20: the retirement income of future boo
Page 21 and 22: for stocks and 2.14 percent for bon
Page 23 and 24: from DB pension income to DC assets
Page 25 and 26: elatively few years to boost their
Page 27 and 28: increases the numbers with DC cover
Page 29 and 30: Who Are the Winners and Losers? The
Page 31 and 32: workers who are affected by DB pens
Page 33 and 34: etirement wealth under the baseline
Page 35 and 36: etirees among formerly better off r
Page 37 and 38: References AARP. 2007. Enhancing 40
Page 39 and 40: 50 45 40 Figure 1. Percent of Last
Page 41 and 42: Table 1. Projected Characteristics
Page 43 and 44: Table 3. Mean Family Income Per Per
Page 45 and 46: Table 5. Mean Family Income Per Per
Page 47 and 48: Table 7. Percent of Individuals Who
Page 49 and 50: Table 9. Change in Mean Family Inco
Page 51 and 52: Appendix A MINT begins with pooled
Page 53: the first year of benefit take-up.
Page 57 and 58: Table B2. Percent of Individuals Wh
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Working Paper - Urban Institute

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