What Kind of Commitment Does a Final-Earnings Pension Plan Elicit?

Posted: 2 Sep 2010

See all articles by Andrew A. Luchak

Andrew A. Luchak

University of Alberta - Department of Strategic Management and Organization

Ian R. Gellatly

University of Alberta - Department of Strategic Management and Organization

Multiple version iconThere are 2 versions of this paper

Date Written: June 15, 2001

Abstract

In a sample of 427 employees in a large, unionized public utility company, we examined the incentive effects of a final-earnings pension plan on employees' commitment to the organization. Two types of organizational commitment, affective and continuance commitment were measured using scales described by Meyer and Allen (1997). We found evidence that higher accruals under the pension plan increased continuance commitment but reduced affective commitment. Organizational commitment was also found to vary by job satisfaction, specific training, seniority, wage premia, and the perceived effectiveness of alternative dispute resolution methods. Implications for pension theory, research, and policy are discussed.

JEL Classification: J52, L97, M50, M52, M54

Suggested Citation

Luchak, Andrew A. and Gellatly, Ian R., What Kind of Commitment Does a Final-Earnings Pension Plan Elicit? (June 15, 2001). Relations Industrielles/Industrial Relations, Vol. 56, No. 2, 2001, Available at SSRN: https://ssrn.com/abstract=1670784

Andrew A. Luchak (Contact Author)

University of Alberta - Department of Strategic Management and Organization ( email )

Edmonton, Alberta T6G 2R6
Canada

Ian R. Gellatly

University of Alberta - Department of Strategic Management and Organization ( email )

Edmonton, Alberta T6G 2R6
Canada

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