Pension benefits among the aged: conflicting measures, unequal distributions.

Estimates of total benefits paid by employer sponsored pension plans seem to vary widely between different data sources and measures. Such discrepancies have been used to support differing conclusions about the effectiveness of the pension system. This article examines several measures of aggregate pension benefits in 1990, a year particularly rich in available data. Exploratory analysis suggests that the greatest source of discrepancy lies in differing treatments of lump-sum distributions, although the study also identifies several other types of payments that are variously, and erroneously, counted as pension income. Age of recipients is an important factor in analyzing different measures of aggregate pension benefits; discrepancies are much smaller among the aged than in the population as a whole. The analysis also provides new evidence about the unequal distribution of pension benefits among the aged, confirming from two data sources that benefits are heavily concentrated among higher income groups.