More public-sector employees have access to retirement plans than their counterparts in private industry, reports the Bureau of Labor Statistics (BLS). Same is true regarding participation.
In its Feb. 1, 2023 The Economics Daily, the BLS provides a snapshot of access to, and participation in, retirement plans by employees in the public and private sectors in 2022. It also looks at March of that year.
Access and Participation
While a majority of private-sector employees both have access to, and participate in, retirement plans, many more of their public-sector peers do. In March 2022, their access and participation stood at:
| Gauge | Public-Sector Employees | Private-Sector Employees | Difference |
| Access to a retirement plan | 92% | 69% | 23 percentage points |
| Participation in the retirement plan | 82% | 52% | 30 percentage points |
| Take-up rate | 90% | 75% | 15 percentage points |
Defined Benefit vs. Defined Contribution
Access to DB plans and DC plans for public and private-sector employees are their converse, the BLS reports.
In 2022, says the report, 15% of private-sector employees had access to a pension plan, while 86% — almost six times as many — public-sector employees did.
At the same time, 66% of private-sector employees had access to a DC plan, while 39% of public-sector employees did. Participation in DC plans was much heavier among private-sector employees than public-sector as well:
| Gauge | Public-Sector Employees | Private-Sector Employees | Difference |
| Access to a DC plan | 39% | 66% | 27 percentage points |
| Participation in the DC plan | 19% | 48% | 29 percentage points |
| Take-up rate | 49% | 73% | 24 percentage points |
Of employees with access to retirement plans, 12% of private-sector employees had access in 2022 to both DB and DC plans; nearly three times as many — 34% — public-sector employees had access to both.
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