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December 1988, Vol. 111, No. 12
The comparative value of pensions
in the public and private sectors
State and local governments generally provide more generous pensions than does private industry; part of the disparity can be explained by the greater likelihood of public sector workers to contribute toward the cost of their benefits. This article discusses key features of pension plans in private industry and in State and local governments and contrasts the proportion of preretirement earnings replaced by plans in the two sectors.
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