Policy Simulation Group

Pension Projection Models

Key Feature: Missing Analysis Capabilities

The PSG models provide a broad range of employer-sponsored pension and social security analysis capabilities, but there are some missing capabilities from the perspective of producing comprehensive estimates of retirement income. It is possible that some of these missing capabilities will be added to the PSG models in the future.

The PSG models do not simulate income taxation at the micro level, which means all pension and social security benefits amounts are pretax amounts. It also means that revenue and distributional estimates of reforms that alter the federal income tax treatment of pension or social security benefits cannot be simulated.

The PSG models do not simulate asset accumulation other than in employer-sponsored pensions and in the social security program. This means that there are no estimates of the housing equity or other (non-pension and non-social-security) assets.

The PSG models do not simulate SSI benefits, which can supplement low social security benefits or provide benefits to those who are not eligible for social security benefits.

The PSG models do not simulate loans or hardship withdrawals from employer-sponsored defined-contribution pension plans.

Other key features.