Using a sample of 429 employees in a large, unionized public utility company in Canada, we examine the incentive effects of a final-earnings pension plan on employees’ job satisfaction. Contrary to rational economic expectations, job satisfaction is found negatively related to expected...

The question of when committed employees retire is important to consider under a defined-benefit pension plan, which credits employees with benefits of lower overall value for retiring either too early or too late. We find employees with higher levels of effective commitment more likely to plan...