ABSTRACTDocuments provided newly hired faculty members were requested from the major statesupported university in each of the fifty states. Those documents revealed two basic types of retirement plans: (1) state‐controlled, defined‐benefit plans in which retirement benefits are a function of a formula rather than the contributions by the employee and employer, if any; and (2) third‐party, defined‐contribution, input‐based plans in which the funds are controlled by a third party and the benefits depend upon the amount of contributions and the return earned by them. The analysis focused upon the defined‐benefit formula plans and a standard was developed to facilitate analysis. The simulations undertaken reveal significant, decision‐relevant biases—especially against faculty who elect to change employers as infrequently as once every ten years when different pension plans are involved! The risks attendant to each type of plan and possible career strategie