In 1993, 38.9 million people were covered by a 401(k) plan, up from 7.1 million in 1983. The rapid growth of 401(k) and other defined contribution pension plans may alter retirement patterns of older workers. Previous research showed that the spread of defined benefit plans, with sharp age-related incentives first discouraging and later encouraging retirement, contributed to the early retirement trend of past decades. Defined contribution plans differ along several dimensions, especially in their smooth rate of pension wealth accrual. Data from the Health and Retirement Study show that retirement patterns have begun to change as defined contribution plans have spread. Estimates indicate that the financial incentives in defined benefit pensions lead people to retire almost two years earlier, compared to people with defined contribution plans.

California legislated the restructuring of its electric power industry in 1996. Deregulation was successful until 2000 when crisis, caused by a number of outside forces and flawed legislation, sent wholesale electric prices skyrocketing. Restructuring of the electricity sector in Texas occurred in two phases. The first phase began in 1995, when wholesale markets were opened to competition; the second phase began June 18, 1997, when the 1999 Texas Electric Choice Act, was signed into law. Deregulation has largely been successful in Texas. This analysis examines the legislation of these states and how they differed, setting the stage for one unsuccessful and one successful move to retail competition in the electricity industry.