Private Pensions and Public Policy

In spite of alarms raised by economists and journalists over the decreasing availability of private pensions, relatively little is known about the topic. This paper explores the political aspects of pension policy, analyzing congressional hearings and organized interest group data from 1970 through 1994. Changes in committee influence, increased executive pressure for revenue without raising taxes, and interest group activity increasingly skewed toward business rather than workers are shown to underlie the present dilemma. This study thus adds to our understanding of pension policy and assesses current policy against competing theoretical models offered by pluralism, hyperpluralism, market as prison, and market justice. It concludes that pension policy is a case of market as prison and argues for renewed focus on the influence of private interests on public policy.