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Suggested Citation:"PRISM Pension Coverage and Characteristics." National Research Council. 1991. Improving Information for Social Policy Decisions -- The Uses of Microsimulation Modeling: Volume II, Technical Papers. Washington, DC: The National Academies Press. doi: 10.17226/1853.
Page 129

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DYNASIM2 AND PRISM: EXAMPLES OF DYNAMIC MODELING 129 Event or Characteristic Variables Used to Determine Event Simulation of Jobs, Pensions, and Retirement Using Longitudinal Histories Job characteristics and pension plans Job change Age, sex, tenure on current job, industry Industry of new job Sex, education, previous industry Pension coverage on new job Sex, industry, earnings level Pension plan participation Age, tenure on job, full- or part-time status, sex Type of pension coverage Industry Pension eligibility and benefits Retirement eligibility Age, industry, years of service, type of pension Vesting Industry Benefit formula Industry and type of pension coverage Benefit plan constants Benefit formula, industry, type of pension coverage Individual retirement accounts Plan participation Sex, earnings Retirement Probability of leaving job Age, sex, disability, marital status, pension eligibility and amounts, social security eligibility and amounts, wage, earnings Probability of taking new job Age, disability, marital status, pension eligibility and amount, social security eligibility and amounts, imputed wage aPeople leaving home for reasons other than marriage, birth of a child, divorce, or death. SOURCE: Johnson, Wertheimer, and Zedlewski (1983); Johnson and Zedlewski (1982). PRISM Pension Coverage and Characteristics Each time an individual obtains a new job, the model estimates whether the new employer sponsors a pension plan. If so, the individual is assigned one of the plan sponsors in the retirement plan provisions database of Lewin/ICF. The match between the pension plan and the individual depends on the industry of the job, multiemployer or single employer status, and hourly or salaried status. Given the set of rules for that pension plan, the model keeps track of pension-relevant detail, including years on the job, wages earned, and so on. Individuals who are 2 or 3 years away from being vested in a pension cannot be selected to change jobs. In addition to keeping track of pension eligibility and accumulation, PRISM maintains a running total of the individual's quarters of social security coverage.

Next: Interactions Between Pension and Social Security Eligibility and Retirement in PRISM »
Improving Information for Social Policy Decisions -- The Uses of Microsimulation Modeling: Volume II, Technical Papers Get This Book
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This volume, second in the series, provides essential background material for policy analysts, researchers, statisticians, and others interested in the application of microsimulation techniques to develop estimates of the costs and population impacts of proposed changes in government policies ranging from welfare to retirement income to health care to taxes.

The material spans data inputs to models, design and computer implementation of models, validation of model outputs, and model documentation.

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