EMPLOYERS AND EMPLOYEES in the United States are contributing to approved pension plans at a 1968 annual rate of 8.0 billion dollars. These pension contributions may have an effect on other individual saving. Specifically, equity in pension plans may substitute for other forms of contractual or voluntary saving. Empirical studies have differed on this impact of pension contributions. Morgan and Friend and Jones (6, 3) found evidence of substitution. More recent monographs by Cagan and Katona (2, 5) have a contradictory-and more controversial-conclusion: employees contributing or otherwise participating in private pension plans also had greater saving in other forms. This finding by Cagan and Katona appears to contradict the theoretical proposition that essentially similar products substitute for each other (2; p. 86). I utilize a new data source to analyze the direct effect of employee pension contributions on other retirement saving, a more specific relation than Cagan's or Katona's studies relating to other household saving, regardless of purpose.' In this more limited relationship, some substitution does take place between private pension contributions and other forms of retirement saving. The effect of pension contributions on aggregate saving is not considered.