Pension reversions and worker-stockholder wealth transfers

Mitchell A. Petersen*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

56 Scopus citations


This paper examines the relative importance of transfers from workers to shareholders in the firm’s decision to terminate their overfunded defined benefit pension plans. In contrast to earlier studies, I find evidence that firms terminate their pension plans to relieve themselves of implicit promises to workers of future compensation. In addition, financing and tax considerations influence the reversion decision. The results suggest that the 1986 excise tax on asset reversions reduced termination for reversion by 36 percent in 1986.

Original languageEnglish (US)
Pages (from-to)1033-1056
Number of pages24
JournalQuarterly Journal of Economics
Issue number3
StatePublished - Jan 1 1992

ASJC Scopus subject areas

  • Economics and Econometrics


Dive into the research topics of 'Pension reversions and worker-stockholder wealth transfers'. Together they form a unique fingerprint.

Cite this