Dissertations / Theses on the topic 'Defined benefit and defined contribution plans'
To see the other types of publications on this topic, follow the link: Defined benefit and defined contribution plans.
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 dissertations / theses for your research on the topic 'Defined benefit and defined contribution plans.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse dissertations / theses on a wide variety of disciplines and organise your bibliography correctly.
1
Amaro, RÃmulo Pereira. "A proposed rule adjustment apply to defined benefit plans." Universidade Federal do CearÃ, 2011. http://www.teses.ufc.br/tde_busca/arquivo.php?codArquivo=7781.
Full textAbstract:
nÃo hÃTaking as premise the need to make retirement plans structured in Defined Benefit (DB) and Hybrid (combination of a Defined Benefit Plan and Defined Contribution) under Private Pension, more attractive to sponsors and thereby reduce the use of model Defined Contribution (DC) commonly adopted in Brazil, considered by many scholars in the field not interesting to participants of benefit plans due to not effectively meet the purpose of social security, is presented in this study a proposal for readjustment rule of benefits that can be adopted both in DB plans as well as in Hybrid, but that relies on DC plans logic. It is an intermediate readjustment rule between the ones commonly adopted in DB plans and DC plans. Through this new rule, the benefits readjustment will be based on investments cumulative profitability, ranging from 0 to 100% of inflation, with the possibility of recovering inflationary losses in situations which investment performance exceeds the actuarial target. In order to demonstrate the viability of the proposed readjustment rule, results of a simulation study using the Monte Carlo method are presented, comparing benefits readjustment based on inflation rate (100% inflation) and readjustment based on the new rule. Simulation results point to possible lower difference, in 60 years, around 10% of benefit net value calculated on the new rule. Although new ruleâs adoption could result in reduction of the net benefit when compared with inflation-based readjustment rule, it appears more advantageous to the participant when compared with readjustment rule practiced in DC plans because it does not admit application of negative annual readjustment on benefits. The proposed rule establishes a point of convergence for both participants and sponsors interests. The readjustment mechanism here proposed represents an innovation to the Brazilian Private Pension system.
Tomando como premissa a necessidade de tornar os planos de previdÃncia estruturados nas modalidades de BenefÃcios Definidos (BD) e de ContribuiÃÃo VariÃvel (CV) mais atrativos para os patrocinadores, no Ãmbito da PrevidÃncia Complementar, e assim reduzir o uso do modelo de ContribuiÃÃo Definida (CD) adotado no Brasil o qual à considerado por muitos estudiosos da Ãrea desinteressante para participantes de planos de benefÃcios por nÃo atender efetivamente a finalidade previdenciÃria, à apresentada neste estudo uma proposta de regra de reajuste de benefÃcios que pode ser adotada tanto em planos do tipo BD como tambÃm CV, mas que se apÃia na lÃgica prÃpria de planos CD. Trata-se de uma regra de reajuste intermediÃria entre a adotada em planos BD e a adotada em planos CD. Por essa nova regra o reajuste dos benefÃcios serà baseado na rentabilidade acumulada dos investimentos, devendo se situar entre 0 e 100% da inflaÃÃo, com possibilidade de recomposiÃÃo de perdas inflacionÃrias em situaÃÃes em que o desempenho dos investimentos supera a meta de atuarial. Com o objetivo de demonstrar a viabilidade do emprego da regra de reajuste proposta, apresentam-se os resultados de um estudo de simulaÃÃo utilizando o mÃtodo Monte Carlo, atravÃs do qual se faz um comparativo entre o reajuste com base nessa regra e o reajuste de benefÃcios com base em Ãndice de inflaÃÃo (100% da inflaÃÃo). Os resultados obtidos apontam para a possibilidade de ocorrÃncia de diferenÃa a menor, em 60 anos, da ordem de 10% no valor lÃquido do benefÃcio apurado com base na regra proposta. Embora a adoÃÃo da nova regra possa implicar essa reduÃÃo no valor lÃquido do benefÃcio quando comparada com a regra de reajuste com base na inflaÃÃo, no entanto, comparativamente à regra de reajuste praticada nos planos CD, esta apresenta-se mais vantajosa para o participante porque nÃo admite a aplicaÃÃo de reajustes anuais negativos sobre os benefÃcios. A regra proposta possibilita situar em um ponto de convergÃncia de interesses participantes e patrocinadores. Esse mecanismo de reajuste proposto representa uma inovaÃÃo para o sistema de previdÃncia complementar brasileiro.
2
Roncha, Ana Teresa Gouveia. "Asset allocation in occupational defined contribution and defined benefit pension plans : an empirical analysis." Master's thesis, Instituto Superior de Economia e Gestão, 2018. http://hdl.handle.net/10400.5/16461.
Full textAbstract:
Mestrado em FinançasExistem vários estudos relacionados com a carteira de investimento dos fundos de pensões, definidos como os patrimónios constituídos com as contribuições para os planos com o objetivo de financiar os benefícios de pensões, e quais as suas implicações no retorno futuro. A alocação de ativos é contingente às características dos fundos e também ao ambiente económico de cada país onde os planos se estabelecem, tal como as regulamentações, as políticas de impostos, legislação e também características demográficas, como por exemplo a esperança média de vida. Os estudos empíricos sobre o assunto usam distintas metodologias de estudo relacionadas com a alocação de ativos em cada fundo, encontrando diferentes implicações visto que usam diferentes hipóteses. A principal pergunta que pretendemos responder e explorar no decorrer deste trabalho é se planos de pensões de benefício definido, contribuição definida e híbridos, que têm diversos riscos, características e objetivos, terão alocações de ativos também diferentes. Iremos focar-nos neste estudo na gestão de ativos e na diferença entre a carteira de investimento durante onze anos de dez países da OECD. Iremos, também, calcular alguns testes estatísticos a fim de perceber se, dadas as diferenças nos planos de pensões e na alocação de ativos, os mesmos têm retornos diferentes. Adicionalmente, tentamos perceber qual o melhor fundo. A conclusão que foi alcançada considerou que os fundos de pensões híbridos, devido à sua composição, apresentam um retorno superior aos restantes, e portanto é também o fundo mais arriscado, enquanto DC e DB são estatisticamente semelhantes no seu retorno.
There are plenty of studies regarding the allocation of assets of the pension funds, defined as assets bought with the contributions to a pension plan for the exclusive purpose of financing pension plan benefits, and the implications of such allocation on the future returns. The allocation of pension funds' assets is contingent to the characteristics of the plan and the economic environment of each country where the plans are based, such as regulation, tax policies, legislation, and demographics, like life expectancy. The empirical studies on the subject use different methodologies to study the asset allocation of each fund, finding different implications, since they use different assumptions. The main question that we intent to explore in this study is that whether defined benefit, defined contribution and hybrid pensions plans, that have different risks, characteristics and objectives, have a different asset allocation on their investment. We will focus our study on the asset management and on the differences between asset allocations through eleven years of ten different OECD countries. We will also perform some statistical tests on yearly data to understand if, given the differences between the pension plans and the allocation of the assets, the funds perform differently. We reached the conclusion that Hybrid pension plans, due to their composition, have an higher return and are the most risky type of pension, while DC and DB are statistically similar on their returns.
info:eu-repo/semantics/publishedVersion
3
Adeboye, Oluwafeyikemi Adebunmi. "Analysing hybrid pension plans : an illustration." Master's thesis, Instituto Superior de Economia e Gestão, 2014. http://hdl.handle.net/10400.5/8055.
Full textAbstract:
Mestrado em Ciências ActuariaisNesta dissertação apresentamos uma ilustração dos alguns planos de pensões híbridos, em cinco países, que em nossa opinião podem ser tomados como referência no que respeita à evolução desse tipo de fundos. O objetivo foi tirar ilações sobre as razões do aumento do recurso aos planos de pensões híbridos, em alternativa aos planos de benefício definido ou de contribuição definida. Se bem que os planos híbridos não sejam comuns, nos últimos tempos, devido ao esforço para atenuar os riscos nos planos tradicionais, têm por vezes vindo a ser considerados uma opção menos arriscada, devido às suas características. Na ilustração considerada nesta dissertação, temos um participante tipo que acabou de ser admitido no fundo de pensões e analisamos três modelos de planos híbridos, que comparamos com os planos de benefício definido e contribuição definida. O propósito é determinar, do ponto de vista do empregador e do ponto de vista do participante, quais os impactes de futuros choques nas taxas de juros, nas atualizações salariais anuais e na idade de reforma. As ilustrações permitiram observar que os planos de pensões híbridos, de facto, oferecem melhores perspetivas, embora com alguns compromissos. Conclui-se que pode haver vantagem para os associados e para os participantes em considerar a possibilidade de implementar um plano híbrido, em alternativa aos planos de contribuição definida, atualmente mais populares, procurando oferecer melhor proteção e mantendo os custos dentro de limites aceitáveis.
In this dissertation we present an illustration of the most common Hybrid pension plans designs in five countries, which in our opinion can be taken as representatives of the Hybrid pension funds. The aim is to explore why Hybrid pension plans are being considered as an alternative to traditional pension plans. Presently, Hybrid pension plans are not as widely used as Defined Benefit and Defined Contribution plans. In the recent times however, due to an effort to minimize the risks in these traditional plans, the Hybrid pension plan is considered as a less risky option due to its characteristic. In the illustration considered one participant that has just been admitted to a pension plan, and analyse three different types of Hybrid plans and compare them with the traditional designs of DB and DC pension plans, in order to determine from the perspective of the sponsor (employer) of pension plan and from the perspective of the participant (employee), what are the cost/benefits of future shocks on the interest rates, salary increases rate and early retirement. It was observed following the illustrations, that Hybrid pension plans do indeed offer better share of risks for both plan participants and sponsors although with some compromises. We conclude that to improve on retirement plans, sponsors need to consider a Hybrid pension plan design as a replacement for the currently popular Defined Contribution plans. Participants on the other hand will welcome this replacement option because of the possibility of a higher risk protection.
4
Puskar, Semira. "Defined benefit versus defined contribution pension plans : how they compare for different working histories." Thesis, Université Laval, 2008. http://www.theses.ulaval.ca/2008/25274/25274.pdf.
Full text
5
Bradley, Linda Jacobsen. "The Impact of the 1986 and 1987 Qualified Plan Regulation on Firms' Decision to Switch from Defined Benefit to Defined Contribution for Plans Larger than 100 Participants." Thesis, University of North Texas, 1993. https://digital.library.unt.edu/ark:/67531/metadc277648/.
Full textAbstract:
The purpose of this research was to examine the United States population of plans with over 100 participants to determine the extent of the reaction away from defined benefit plans resulting from the 1986 and 1987 legislation.
6
Lee, Chih Yun. "Funding the Black Hole: The Ineffectiveness of the Current Retirement Plan Structure and Future Solutions." Scholarship @ Claremont, 2013. http://scholarship.claremont.edu/cmc_theses/629.
Full textAbstract:
This paper seeks to examine the failures of the current retirement plan structure, focusing on the structure’s reliance on unpredictable future market returns and the unwillingness of the parties involved to negotiate in order to further enhance their own self-centered interests. Currently, both defined contribution and defined benefit plans encounter a funding crisis in both the public and the private sectors. This paper will discuss how retirement plans, by nature, rely on assumptions of market returns, which naturally depend on the volatility of the market and increase the risk and uncertainty in retirement plans. In addition, since defined benefit plans mostly exist in the public sector today, this paper will examine defined benefit plans in relation to the public sector’s funding crisis and hope to shed light on the politics and tensions between the parties involved in public retirement plans that are preventing effectiveness and efficiency. Finally, this paper will also present alternative retirement plan strategies for which academics and scholars have advocated. However, at the end of the day, as opposed to relying on others to dictate one’s future benefits, which are based on the goodwill of others and uncertainty in the market, Americans should recognize their lack of savings and improve their personal financial literacy and develop individualized savings plans.
7
Serlenga, Lorenzo. "Effects of transfers on liabilities of pension schemes." Master's thesis, Instituto Superior de Economia e Gestão, 2020. http://hdl.handle.net/10400.5/20994.
Full textAbstract:
Mestrado em Actuarial ScienceNos últimos anos, as regras de adesão aos planos de pensões no Reino Unido tornaram-se mais flexíveis e a maioria dos membros passou a ter a possibilidade de mudar de um plano para outro, de acordo com as suas necessidades pessoais e financeiras. Isto significa que um dado membro, se assim o desejar, pode transferir o valor acumulado das contribuições feitas em seu favor para um outro fundo. A opção de transferir é justificada sobretudo pelo facto de os planos CD serem mais flexíveis na forma como os benefícios são recebidos e, às vezes, permitirem um maior controlo do membro sobre a forma como o dinheiro é investido - As transferências são um procedimento complexo do ponto de vista atuarial: os administradores precisam de calcular o montante que deve ser entregue ao membro que sai, uma tarefa realizada com a assistência do atuário do plano, que tem que definir os pressupostos económicos e demográficos necessários para o cálculo. Este trabalho resulta de um estágio no Lisbon Service Centre da Willis Tower Watson, onde estive envolvido no processo de avaliação de fundos de pensões do Reino Unido, com o objetivo de projetar as responsabilidades futuras dos planos. A legislação impõe que as empresas do Reino Unido realizem avaliações, pelo menos, a cada três anos, dada a importância, tanto para os membros como para as empresas, de conhecer o respetivo nível de financiamento e a situação financeira, em geral.
In the last years the regulations for pension plans membership became more flexible and most members have now the possibility to move from a scheme to another, according to their personal and financial needs. This means members are able to move their accumulated pots through a transfer, and this usually happens from a Defined Benefit (DB) to a Defined Contribution (DC) scheme. The option to transfer is justified because DC schemes are characterized by more freedom regarding the way benefits are collected and sometimes more control on the way the money is invested - although the member will take on the investment risk, the longevity risk and the income management risk. Transfers are a complex procedure from the actuarial point of view: trustees need to calculate the lump sum to be provided to the member leaving the scheme, a task performed with the assistance of actuaries, who are asked to set the economic and demographic assumptions required for the calculation. This work is a result of an internship at the Lisbon Service Center of Willis Tower Watson, where I have been involved in the UK pension fund valuation process, with the objective of projecting the future liability of schemes. Legislation imposes that UK firms must perform valuations of the schemes at least every three years, given the importance, both for members and clients, of knowing their funding position and financial situation.
info:eu-repo/semantics/publishedVersion
8
Gasparini, Marise Theodoro da Silva. "Tendências nos desenhos de planos de benefícios nos fundos de pensão do ES." reponame:Repositório Institucional do FGV, 2001. http://hdl.handle.net/10438/3776.
Full textAbstract:
Made available in DSpace on 2009-11-18T19:00:59Z (GMT). No. of bitstreams: 0
Previous issue date: 2001o trabalho discute os fatores que condicionaram a migração de planos de beneficios entre os Fundos de Pensão localizados no Estado do Espírito Santo. O mais antigo modelo de plano de beneficios implantado no Brasil, o plano de beneficio definido, tem características bastante vantajosas aos participantes, pois as empresas patrocinadoras assumem os riscos de desequilíbrio do plano, e os beneficios futuros são assegurados aos participantes. O segundo modelo, mais recente no país, tem como característica principal o fato de que o participante assume os riscos do plano, e os beneficios futuros dependem de diversos fatores, como rentabilidade, tempo de participação, entre outros, deixando de existir garantia aos participantes. Apesar disso, os Fundos de Pensão tem implantado processos de migração de planos de beneficio definido para contribuição definida com sucesso. O texto procura identificar as razões e conseqüências da migração, estabelecendo correlações entre os dois modelos, identificando suas diferenças e semelhanças, o papel exercido pelas empresas patrocinadoras e a estratégia de convencimento dos participantes. Pretende-se que as reflexões sobre esse processo possam contribuir para que os Fundos de Pensão e outros pesquisadores interessados possam ter um nível maior de compreensão e fundamentação sobre o assunto.
This dissertation discusses the factors that have created the framework for the migration of the pension plans among the pension funds in the state of Espirito Santo. The first benefit plan model in Brazil, the defined benefit plan, has many advantages for the participant. Their risks are supported by the sponsor of the plan, and future benefits are assured to the participants. The second model, more recently introduced in the country, has its main point in the fact that participants have to bear the risks, and future benefits depend on many factors like the historical performance of the plan and time of participation, and there is no guaranty to the participants. Regardless these facts, pension funds have adopted successful processes for the migration from defined benefits plans to defined contribution plans. This text identifies reasons and consequences of those process of migration, establishing correlations, differences and similarities between the two models, and the role of the sponsors and their strategies in persuading the participants. We intend to raise questions upon this process, in order to contribute for a greater levei of comprehension of the issue.
9
Antunes, Paulo Alexandre Rosa Pereira. "Modelação estocástica de fundos de pensões." Master's thesis, Instituto Superior de Economia e Gestão, 2010. http://hdl.handle.net/10400.5/2436.
Full textAbstract:
Mestrado em Ciências ActuariaisNesta dissertação é apresentado um modelo de análise da evolução de um plano de pensões de benefício definido, baseado na simulação estocástica da evolução dos salários dos participantes, responsabilidades, retorno dos activos e níveis de financiamento. O comportamento das variáveis subjacentes à evolução do modelo, nomeadamente a inflação, taxas de juro e retorno dos diversos activos é modelizado com base nos modelos financeiros de longo prazo de Wilkie e Hibbert. O risco associado às contribuições a efectuar pelo promotor do plano é medido através da dispersão das distribuições empíricas obtidas para o valor da taxa média de contribuição sobre os salários dos participantes. Os resultados obtidos a partir dos dois modelos são comparados graficamente e através da análise de estatísticas relevantes, interpretando-se as diferenças entre os resultados obtidos à luz das características dos modelos utilizados. Adicionalmente, são realizadas análises de sensibilidade dos resultados dos modelos face a variações de alguns dos parâmetros utilizados.
This dissertation presents an analytic model of the evolution of a defined benefit pension plan, based on the stochastic simulation of participant's wages, responsibilities, asset returns and funding levels. The behavior of the variables underlying the model, namely inflation, interest rates and asset returns is modeled based on the long term financial models of Wilkie and Hibbert. The risk related to the contributions to be made by the plan's sponsor is measured based on the dispersion of the empirical distributions obtained for the value of the average contribution rate on the participant's wages. The results obtained with the two models are compared graphically and by analysis of relevant statistics, and the differences between the results obtained interpreted considering the characteristics of the models used. Furthermore, sensitivity analyses of the results obtained, given variations of some of the parameters used, are made.
10
Mamaril, Cezar Brian C. "Funding Defined Benefit State Pension Plans: An Empirical Evaluation." UKnowledge, 2013. http://uknowledge.uky.edu/msppa_etds/3.
Full textAbstract:
Defined Benefit (DB) state pension trust funds are an integral component of state finances and play a major role in the country’s labor and capital markets. The last decade though has seen a substantial growth in unfunded pension obligations and a seeming inability by states to make the contributions needed to cover funding shortfalls. When coupled with even larger unfunded retirement health benefits, the looming threat of insolvent state retirement systems pose both current and long-term fiscal challenges to state governments already struggling with the ongoing economic downturn and billions of dollars in budget deficits. The convergence of these factors have led states to undertake various reform strategies in an attempt to move their respective public pension plans towards a more sustainable funding path.
Using an asset-liability framework to describe the DB plan funding structure and process, this dissertation advances the discussion over major pension reform efforts currently implemented or considered by states. I show analytically the link between various pension reform categories and specific DB plan funding components, and how this in turn, affects DB plan funding outcomes. From this analytical framework, I derive the study’s hypotheses on the relationship between DB plan reform-linked funding components and outcomes of interest.
This study looks at three DB-plan reform-linked funding components: (1) plan member employee contributions, (2) plan employer contributions, and (3) retirement benefit payments. Four major funding outcomes are evaluated: (1) the employer contribution rate, (2) flow funding ratio, and (3) stock funding ratio, and (4) relative size of plan unfunded liability.
Utilizing a unique panel dataset of 100 DB state retirement systems from 50 states covering a nine-year period of FY 2002 to 2010, I empirically test the following hypothesized funding relationships: (1) States as DB plan sponsors have underfunded their plans as indicated by their failure to meet annual employer funding requirements; and (2) Increasing the employee and employer contribution rate and reducing the cost of retirement benefits are associated with higher plan stock funding ratios and lower unfunded pension liabilities.
Results from my fixed-effects (FE) panel regression analyses provide the clearest empirical evidence to date that state DB pension plan sponsors underfunded their required annual employer contributions. The financial condition of a state’s budget is also shown to have a significant effect on the amount states are able to contribute into their pension funds. I find empirical support for the crucial function of employer contributions in determining the overall funded status of state pension plans. This finding is further reinforced when I estimate plan stock funding ratios using a dynamic system GMM (sGMM) panel regression model. The results from static FE and dynamic sGMM models suggest no significant effect on overall plan funding levels from changes in the employee contribution rate or the average retirement benefit cost. Lastly, the results lend evidence to the significant influence of past funding levels on current funding levels. It is recommended that future empirical research account for the dynamic nature of public pension funding and related endogeneity issues. This dissertation concludes by discussing the implications of the empirical findings for policy makers seeking to improve the funded status of their respective state DB retirement systems.
11
Byrne, Alistair. "Decision-making in defined contribution pension plans." Thesis, University of Strathclyde, 2008. http://oleg.lib.strath.ac.uk:80/R/?func=dbin-jump-full&object_id=21692.
Full textAbstract:
This thesis - which comprises mainly a collection of published articles - is about the saving and investment decision-making of members of defined contribution (DC) pension plans. An analysis of the decisions individuals make when saving for retirement fits well within the growing literature on behavioural economics and finance, which is based on the idea that many individuals are subject to behavioural traits that can lead to errors in decision-making. This literature is influential in the ideas developed and hypotheses tested in this thesis. The analysis in this thesis uses different methods - focus groups, postal surveys, and analysis of administrative data - to investigate the approaches DC scheme members take to saving and investment decisions and to assess the consistency of those approaches with traditional and behavioural theory. On balance the behavioural theories appear better representations of what members do. The thesis also presents analysis where a simulation model is used to investigate the effects of inertia (in terms of joining decisions) and default bias (in terms of investment choice) on the pension outcomes DC scheme members are likely to enjoy. The thesis concludes with policy suggestions concerned with improving the design of DC pension plans and directions for further research.
12
Wiles, Gregory. "Why Are There Any Public Defined Contribution Plans?" Thesis, Boston College, 2006. http://hdl.handle.net/2345/413.
Full textAbstract:
Thesis advisor: Alicia H. MunnellRetirement plans for state employees have over $2 trillion in assets, a significant portion of the U.S. retirement market. In the last 10 years, seven states have transitioned their employee retirement plans from traditional annuity-providing defined benefit pensions to individual account-style defined contribution plans. While private-sector employers save money in transitioning to a defined contribution plan, states actually lose money when switching. Why state governments choose to sponsor retirement plans that cost both the state and its employees money is the central question of this study. Several financial and demographic variables are considered; the only variable that cannot be ruled out is political ideology. The probit panel regression finds that states with Republican-controlled governments are far more likely to switch to a defined contribution plan than states with mixed or Democrat-controlled governments. This conclusion illuminates the central importance of unions in the political process of public plan decision-making and reveals the importance of potential economics losses that result from sponsoring defined contribution plans
Thesis (BA) — Boston College, 2006
Submitted to: Boston College. College of Arts and Sciences
Discipline: Economics
Discipline: College Honors Program
13
Dimitrova, Milka. "Essays on corporate defined benefit pension plans and Chapter 11 bankruptcy." Thesis, University of British Columbia, 2015. http://hdl.handle.net/2429/54712.
Full textAbstract:
In this thesis, I present two essays on corporate defined benefit pension claimants and Chapter 11 bankruptcy. First, defined benefit claimants are related to a lower likelihood that the firm files for Chapter 11 bankruptcy. Second, defined benefit claimants influence the bankruptcy reorganization process beyond the role played by the firm's traditional creditors.
In the first essay, I examine the role of defined benefit claimants in times leading up to bankruptcy. Defined benefit claimants are less diversified and face higher costs of Chapter 11 bankruptcy than traditional lenders. I show that these differences have implications for the likelihood that firms file for Chapter 11 bankruptcy: the higher the share of defined benefit liabilities relative to overall liabilities, the lower the likelihood of Chapter 11 bankruptcy. These results indicate that defined benefit claimants' incentives to keep the firm as a going concern matter for the firm's decision to file for Chapter 11 and should be considered in studies of debt renegotiation between the firm and its creditors.
In the second essay, I focus on defined benefit claimants in bankruptcy and their impact on the reorganization process. I provide evidence that pension claimants influence the Chapter 11 restructuring beyond the impact of traditional lenders. In particular, defined benefit claimants play a role in the decision to terminate a pension plan in bankruptcy, in the likelihood that firms refile for bankruptcy, and in the amounts that unsecured creditors recover in bankruptcy. These results highlight a role for pension claimants in bankruptcy restructuring beyond that of traditional creditors. Additional tests indicate that one channel through which defined benefit claimants influence the Chapter 11 process and its outcomes is by accepting cuts in their pension liabilities which cannot be explained by the average reductions experienced by other creditors. These findings highlight the role of defined benefit claimants as an important player in bankruptcy restructuring.Business, Sauder School of
Graduate
14
Ma, Qing-Ping. "Issues in the design of defined-contribution pension plans." Thesis, Birkbeck (University of London), 2008. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.504744.
Full textAbstract:
This thesis investigates three key issues in the design of defined-contribution (DC) pension plans: the optimal asset allocation strategy. the optimal retirement age and the optimal pension contribution rate. r first derive the optimal asset allocation strategy by dynamic programming for both power utility and exponential utility with stochastic interest rate and wage income. The expected terminal utility is assumed to be a function of wealth-to-wage ratio. For power terminal utility with fully hedgeable wage income or no further contribution, the optimal portfolio composition is horizon independent. For the exponential terminal utility with contribution from wage incomes with uninsurable risk, the optimal portfolio composition is also horizon independent, and the pension plan has a constant optimal pension wealth-to-wage ratio. . I then compare the optimal allocation strategy with three simple dynamic allocation strategies, the lifestyle, the threshold and the constant proportion portfolio insurance (CPPI) strategies, by numerical simulation. The optimal asset allocation strategy produces much better performance than the three simple dynamic allocation strategies. It also shows that the deterministic lifestyle strategy and the threshold strategy can be replicated by static allocations with the same expected returns and smaller vanances. The optimal retirement age and the optimal pension contribution rate problems are solved as part of the expected lifetime utility maximization problem. I show that when utility is solely determined by consumption and there is no defined benefit (DB) pension plan, the retirement age has to be exogenously given. The optimal retirement age is derived for the consumption and leisure additively separable utility and the multiplicatively separable utility. I denve the optimal pension e6tHSaHti9R rates for a gjven retirement age in a certainty world and then demonstrates that the lower and upper bounds of optimal pension contribution rates can be derived for nonlinear marginal utility with uninsurable wage risk.
15
Doran, Pietro A. (Pietro Augusto). "Real estate investment for defined contribution plans--an analysis." Thesis, Massachusetts Institute of Technology, 1990. http://hdl.handle.net/1721.1/65670.
Full text
16
Basu, Anup K. "Essays on asset allocation strategies for defined contribution plans." Thesis, Queensland University of Technology, 2008. https://eprints.qut.edu.au/16992/1/Anup_Kumar_Basu_Thesis.pdf.
Full textAbstract:
Asset allocation is the most influential factor driving investment performance. While researchers have made substantial progress in the field of asset allocation since the introduction of mean-variance framework by Markowitz, there is little agreement about appropriate portfolio choice for multi-period long horizon investors. Nowhere this is more evident than trustees of retirement plans choosing different asset allocation strategies as default investment options for their members. This doctoral dissertation consists of four essays each of which explores either a novel or an unresolved issue in the area of asset allocation for individual retirement plan participants. The goal of the thesis is to provide greater insight into the subject of portfolio choice in retirement plans and advance scholarship in this field. The first study evaluates different constant mix or fixed weight asset allocation strategies and comments on their relative appeal as default investment options. In contrast to past research which deals mostly with theoretical or hypothetical models of asset allocation, we investigate asset allocation strategies that are actually used as default investment options by superannuation funds in Australia. We find that strategies with moderate allocation to stocks are consistently outperformed in terms of upside potential of exceeding the participant’s wealth accumulation target as well as downside risk of falling below that target by very aggressive strategies whose allocation to stocks approach 100%. The risk of extremely adverse wealth outcomes for plan participants does not appear to be very sensitive to asset allocation. Drawing on the evidence of the previous study, the second essay explores possible solutions to the well known problem of gender inequality in retirement investment outcomes. Using non-parametric stochastic simulation, we simulate iv and compare the retirement wealth outcomes for a hypothetical female and male worker under different assumptions about breaks in employment, superannuation contribution rates, and asset allocation strategies. We argue that modest changes in contribution and asset allocation strategy for the female plan participant are necessary to ensure an equitable wealth outcome in retirement. The findings provide strong evidence against gender-neutral default contribution and asset allocation policy currently institutionalized in Australia and other countries. In the third study we examine the efficacy of lifecycle asset allocation models which allocate aggressively to risky asset classes when the employee participants are young and gradually switch to more conservative asset classes as they approach retirement. We show that the conventional lifecycle strategies make a costly mistake by ignoring the change in portfolio size over time as a critical input in the asset allocation decision. Due to this portfolio size effect, which has hitherto remained unexplored in literature, the terminal value of accumulation in retirement account is critically dependent on the asset allocation strategy adopted by the participant in later years relative to early years. The final essay extends the findings of the previous chapter by proposing an alternative approach to lifecycle asset allocation which incorporates performance feedback. We demonstrate that strategies that dynamically alter allocation between growth and conservative asset classes at different points on the investment horizon based on cumulative portfolio performance relative to a set target generally result in superior wealth outcomes compared to those of conventional lifecycle strategies. The dynamic allocation strategy exhibits clear second-degree stochastic dominance over conventional strategies which switch assets in a deterministic manner as well as balanced diversified strategies.
17
Basu, Anup K. "Essays on asset allocation strategies for defined contribution plans." Queensland University of Technology, 2008. http://eprints.qut.edu.au/16992/.
Full textAbstract:
Asset allocation is the most influential factor driving investment performance. While researchers have made substantial progress in the field of asset allocation since the introduction of mean-variance framework by Markowitz, there is little agreement about appropriate portfolio choice for multi-period long horizon investors. Nowhere this is more evident than trustees of retirement plans choosing different asset allocation strategies as default investment options for their members. This doctoral dissertation consists of four essays each of which explores either a novel or an unresolved issue in the area of asset allocation for individual retirement plan participants. The goal of the thesis is to provide greater insight into the subject of portfolio choice in retirement plans and advance scholarship in this field. The first study evaluates different constant mix or fixed weight asset allocation strategies and comments on their relative appeal as default investment options. In contrast to past research which deals mostly with theoretical or hypothetical models of asset allocation, we investigate asset allocation strategies that are actually used as default investment options by superannuation funds in Australia. We find that strategies with moderate allocation to stocks are consistently outperformed in terms of upside potential of exceeding the participant’s wealth accumulation target as well as downside risk of falling below that target by very aggressive strategies whose allocation to stocks approach 100%. The risk of extremely adverse wealth outcomes for plan participants does not appear to be very sensitive to asset allocation. Drawing on the evidence of the previous study, the second essay explores possible solutions to the well known problem of gender inequality in retirement investment outcomes. Using non-parametric stochastic simulation, we simulate iv and compare the retirement wealth outcomes for a hypothetical female and male worker under different assumptions about breaks in employment, superannuation contribution rates, and asset allocation strategies. We argue that modest changes in contribution and asset allocation strategy for the female plan participant are necessary to ensure an equitable wealth outcome in retirement. The findings provide strong evidence against gender-neutral default contribution and asset allocation policy currently institutionalized in Australia and other countries. In the third study we examine the efficacy of lifecycle asset allocation models which allocate aggressively to risky asset classes when the employee participants are young and gradually switch to more conservative asset classes as they approach retirement. We show that the conventional lifecycle strategies make a costly mistake by ignoring the change in portfolio size over time as a critical input in the asset allocation decision. Due to this portfolio size effect, which has hitherto remained unexplored in literature, the terminal value of accumulation in retirement account is critically dependent on the asset allocation strategy adopted by the participant in later years relative to early years. The final essay extends the findings of the previous chapter by proposing an alternative approach to lifecycle asset allocation which incorporates performance feedback. We demonstrate that strategies that dynamically alter allocation between growth and conservative asset classes at different points on the investment horizon based on cumulative portfolio performance relative to a set target generally result in superior wealth outcomes compared to those of conventional lifecycle strategies. The dynamic allocation strategy exhibits clear second-degree stochastic dominance over conventional strategies which switch assets in a deterministic manner as well as balanced diversified strategies.
18
Lang, Joel B. "The defined benefit pension plan System : financial problems and policy responses /." Thesis, Monterey, Calif. : Springfield, Va. : Naval Postgraduate School ; Available from National Technical Information Service, 2004. http://library.nps.navy.mil/uhtbin/hyperion/04Jun%5FLang.pdf.
Full text
19
Hong, Wonku. "The Effect of Defined Contribution Plans on the Retirement Decision." Digital Archive @ GSU, 2006. http://digitalarchive.gsu.edu/rmi_diss/19.
Full textAbstract:
This study examines the effect of pensions on the timing of retirement, focusing on the differences between defined benefit (DB) plans and defined contribution (DC) plans. I find that DC plans have different effects on the accumulation of retirement wealth, the incentives for retirement and the risk of retirement benefits than DB plans. Thereby, DC plans have different effects from DB plans on the decision to retire. This paper is the first empirical study to investigate the effect of longevity risk in pension plans on retirement. It is an important addition to the literature on retirement behavior since longevity risk will become more important as individuals have longer life expectancies and bear more longevity risk due to increasing likelihood of coverage by DC plans or Social Security personal accounts. Previous research has found that DB plans have an age-incentive effect on retirement. That is, the structure of DB plans may induce individuals to retire at a specific age. By contrast, the structure of DC plans does not have age-incentive effects. Thereby, individuals with DC plans may retire either earlier or later on average than individuals with DB plans because of the absence of age-related incentives in DC plans. To shed further light on these issues, this study introduces risk factors, and particularly longevity risk, to an option value model of the retirement decision. Longevity risk is important to DC participants since DC plans usually offer a lump-sum benefit at retirement. Since payouts are not guaranteed over life expectancy, retirees with DC plans bear a greater risk of outliving their resources, i.e., longevity risk. The additional risks in DC plans may make workers save more, and retire later. This paper extends a standard intertemporal model of consumption and retirement by incorporating risk factors for different pension types into the retirement decision problem. Comparative statics from the optimal solution show that increases in risk factors (i.e. longevity risk) during retirement induce workers with DC plans to retire later than workers with defined benefit (DB) plans. This study then test the predictions of this model empirically, using the data from the Health and Retirement Study (HRS). Empirical results confirm the predictions of the theoretical model. First, workers with DC plans expect to retire later than workers with DB plans. Next, increase in pension option value, measured as the difference between the maximum pension value and the pension value of 1992, decreases the probability of retirement, thereby increasing the expected retirement wage. By contrast, greater pension wealth increases the probability of retirement, reducing the expected retirement age. Considering that pension wealth in DC plans is about half of pension wealth in DB plans, it is reasonable to conclude that workers with DC plans retire later than workers with DB plans. Finally, longevity risk, as measured by the Annuity Equivalent Wealth (AEW), decreases probability of retirement, increasing the expected retirement age.
20
Park, Heejin. "Company Stock in Defined Contribution Plans: Evidence from Proxy Voting." Thesis, University of Oregon, 2014. http://hdl.handle.net/1794/18377.
Full textAbstract:
This study examines whether firms' decisions to offer company stock in defined contribution (DC) plans are explained by managers' corporate control motives. Using a large sample of proxy voting outcomes, I find that employee ownership in DC plans is significantly and positively associated with the level of voting support for management sponsored proposals. This suggests that managers encourage employee DC holdings in company stock in order to receive higher voting support in favor of management. The effects of employee ownership on voting outcomes are significantly greater in subsample tests than in full sample tests: management proposals opposed by Institutional Shareholder Services, management proposals of close votes, director election votes receiving more than 20% of votes withheld, and say-on-pay frequency proposals.
21
MacDonald, Bonnie-Jeanne. "The impact of defined contribution pension plans on population retirement dynamics." Thesis, Heriot-Watt University, 2007. http://hdl.handle.net/10399/72.
Full textAbstract:
Defined contribution pension (DC) plans are on the rise around the world, in both the private pension plan domain as well as in state pension systems. Our study investigates the risks this trend poses to the economic well-being of individuals and the welfare of the aggregate population. Through stochastic simulation, we investigate the potential implications of DC pension plans dominating the income support system for the retired members of a population. We make the assumption that workers retire when they can afford to replace a reasonable proportion of their wages. Our main focus is the demographic retirement dynamics. We also explore, however, consequential changes in the retirement conduct of individuals through the use of structural retirement-behavior models. We find that the retirement age of an individuals with a DC pension plan is extremely unpredictable, even under various investment strategies and retirement models. At the aggregate population level, we find that this uncertainty of the average retirement age over time does not get dampened to any great extent by the heterogeneity of the population. Instead, the central role played by the market in determining retirement dates causes significant variation in the dependency ratio (the ratio of retirees to workers) over time. In addition, various attempts to ameliorate the outcome by introducing additional realistic features in the DC population modeling, such as feedback among the aggregate retirement patterns and macroeconomic variables, do not successfully reduce the volatility to a reasonable level. Our findings suggest that countries dominated by DC schemes of this type may, over time, be exposed to significant risk in the size of its labour force.
22
SANTOS, BERNARDO QUEIMA ALVES DOS. "BEHAVIORAL FINANCE: NAIVE DIVERSIFICATION IN DEFINED CONTRIBUTION SAVINGS PLANS IN BRAZIL." PONTIFÍCIA UNIVERSIDADE CATÓLICA DO RIO DE JANEIRO, 2007. http://www.maxwell.vrac.puc-rio.br/Busca_etds.php?strSecao=resultado&nrSeq=11392@1.
Full textAbstract:
Os estudos realizados no campo das finanças
comportamentais demonstram
que as decisões financeiras dos indivíduos não são
elaboradas num contexto
plenamente racional. Esta afirmação diverge dos modelos
clássicos financeiros
que utilizam a premissa de um agente econômico plenamente
racional, o qual
toma suas decisões de acordo com a curva de utilidade,
buscando maximizar seu
bem estar. Finanças comportamentais incorporam psicologia
e sociologia para
ampliar o conhecimento sobre o processo decisório dos
indivíduos. Diversos
trabalhos realizados neste campo de pesquisa evidenciam
que as decisões
financeiras também são construídas por agentes que
possuem: otimismo
demasiado, excesso de autoconfiança, aversão à perda e
outros vieses
comportamentais enraizados em nossa cultura. As grandes
mudanças
demográficas ocorridas nos últimos anos, destaque para a
ampliação da
expectativa de vida dos indivíduos, tem exercido uma
enorme pressão sobre as
estruturas previdenciárias. A principal tendência mundial
para responder a estas
mudanças demográficas tem sido a alteração de planos de
beneficio definido para
planos de contribuição definida. Esta modificação tem
resultado num incremento
de responsabilidade aos participantes, e uma das
principais obrigações é a decisão
de alocação dos seus investimentos. O objetivo deste
trabalho é pesquisar os
aspectos comportamentais destes indivíduos na tarefa de
escolher os seus
investimentos. A ocorrência de uma diversificação ingênua
dos investimentos em
previdência pode significar sérias dificuldades na
aposentadoria dos participantes.
Para verificar a ocorrência da diversificação ingênua na
escolha de um plano de
previdência foram encaminhados quatro questionários para
grupos de indivíduos.
Os testes realizados sobre as respostas evidenciaram a
ocorrência de
diversificação ingênua e também a utilização da estratégia
1/n, que significa a
divisão dos investimentos em partes parecidas de acordo
com o número de opções
disponíveis.Behavioral finance researches indicate that individual financial decisions are not made based on a completely rational context. This assumption disagrees from the classical economic models that believe in a rational financial agent, which takes its decisions according to the utility curve to maximize its wealth. Behavioral finance incorporates psychology and sociology to better understand the individual process of decision. Different studies done in this field of research became evident that these kinds of decision are built up by agents that have excessively optimism, high self-confidence, aversion to losses and other aspects that are deep-rooted in our culture. Huge demographic changes in the past few years, specially the increase in life expectancy, impacted the pension plan structures. The main global trend to address these changes has been the movement to migrate from the defined benefit saving plans to defined contribution saving plans. As a result of this trend, we can observe an increase in the participants` responsibilities, with emphasis to the decision about the asset allocation. The objective of this research is to analyze the behavioral aspects of the individuals related to the task of asset allocation. The occurrence of a naïve diversification of investments in defined contribution saving plans can hardly affect the individual retirement. To verify this assumption, four different questionnaires were sent to different groups of individuals. Post Tests were ran to evince the occurrence of a naïve diversification of investments, as well as the use of 1/n strategy - divide savings in similar parts according to the amount of available options of investments.
23
Mashruwala, Shamin D. "The impact of accounting smoothing on asset allocation in corporate pension plans : evidence from the U.K. /." Thesis, Connect to this title online; UW restricted, 2007. http://hdl.handle.net/1773/8835.
Full text
24
Wang, Ke. "Long-term investment and asset allocation strategies in defined contribution pension plans." Thesis, University of Exeter, 2012. http://hdl.handle.net/10871/10504.
Full textAbstract:
As the most influential factor driving investment performance, asset allocation has received a considerable amount of attention from researchers since the introduction of the mean variance framework by Markowitz; however, as far as is known, there has been little agreement on asset allocation for multi-period long-term investors. Therefore, this doctoral research investigates the performance of long-term investment over major asset classes and explores some issues in terms of asset allocation for individual retirement plan participants from an international prospective. The first essay investigates the relative performance of stocks, long-term government bonds and treasury bills for various investment horizons across seventeen nations and considers whether or not investment risk decreases over time, i.e. whether or not the notion of time diversification is valid. It was observed that investment outcomes at short horizons were quite different from outcomes at longer horizons and investment outcomes are different with the different asset classes. The results indicate that the benefits of time diversification are apparent for stocks as evidenced by the reduction of investment risk over longer holding periods. The diminishing relative riskiness of stocks over bills/bonds with investment horizon implies that equity weights in optimal asset allocation should depend on investment horizon. Therefore, the conventional wisdom of increasing equity exposure with an increasing investment horizon is strongly supported. Drawing on the results of the previous study, the second essay examines the asset allocation strategies of individual retirement participants and investigates the lifecycle investment strategy that is most widely used in DC pension plans. The conventional lifecycle strategies are shown to underperform the alternative buy and hold strategies. Furthermore, two dynamic lifecycle asset allocation strategies, which incorporate performance feedback, are introduced, and these are found to be responsive to past performances of stock returns or portfolios, with more superior wealth outcomes than the conventional lifecycle strategy, which is currently most commonly used. The final study extends the previous study by using various savings rates and varying investment horizons rather than fixed numbers. In addition, since most previous research on pension investment completely ignores tax, this study examines the tax effect on retirement outcomes over various tax regimes. The results indicate that a relatively shorter savings period and a lower savings rate significantly reduce the probability of achieving the target retirement income. Additionally, investment strategies for a relatively shorter investment period are crucial for the success of retirement planning because of the huge differences in the success rates of various strategies. Moreover, countries that apply an EET tax regime have less significant reduction in success rates than those that operate an ETT or TTT tax regime. Thus, retirement participants in countries with an EET regime have more incentive to invest their savings in pension funds and countries under other tax regimes need to contribute more to achieve their target retirement wealth outcomes.
25
Kiosse, Paraskevi. "Accounting for Defined Benefit Pension Plans in the US : Evidence on value relevance and earnings management." Thesis, Lancaster University, 2007. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.514457.
Full text
26
Mitrou, Evisa. "Defined benefit plan retentions and pension buy-ins/buy-outs : evidence from the UK." Thesis, University of Exeter, 2017. http://hdl.handle.net/10871/32820.
Full textAbstract:
This thesis consists of three self-contained papers on defined benefit (DB) pension provision in the United Kingdom (UK). In particular, in the first paper, I examine the effect that labour market incentives, managerial incentives and the adoption of FRS17 by UK firms, have on DB plan retention decisions. In this paper, I also examine the role of insider trustees, defined as trustees that are also company executives, on the firm’s decision to keep DB plans open. I find that firms for which human capital is especially important are more likely to retain their defined benefit plans. In addition, CEO and CFO membership in the same pension plan that is provided for other employees positively influences the retention of defined benefit pension plans. Additional analysis using a sub-sample for which data on pension plan trustees are available suggests that being a CEO and a trustee increases the probability of DB plan retentions. Moreover, being a CEO/CFO trustee and a member of the DB plan offered to all employees increases the likelihood of DB plan retention. However, I do not find any evidence that voluntary adoption of FRS 17 influences DB plan retention. In addition, I find that insider-trustees have a positive influence on the decision to maintain DB plans, especially when they are members of these plans. In the second paper, I look at the effect of DB plan retentions and executive membership in them, on corporate credit ratings and the investment and dividend decisions. Empirical findings suggest that firms which continue to sponsor DB plans are more likely to have lower credit ratings which are exacerbated when these plans are underfunded. Despite the above effect however, I find that if the CEO is a member of the DB plan, it positively affects credit ratings. In addition, I find some evidence that the participation of CEOs in the main DB plans in conjunction with overfunded pension plans, negatively affect investment decisions when these schemes remain open. I do not find any association between CEOs membership in the main DB plan and dividend payments which may be explained by the market signalling effects of dividends. Finally, in the third paper, I provide a thorough analysis of the pension buy-in and buy-out market in the UK, and I empirically examine the determinants of such transactions from a firm and plan perspective. I find that firms that implement buy-ins have larger and more funded pension plans, are more profitable and have higher union densities. Moreover, firms that complete buy-outs have larger pension plans and allocate less pension assets in equity. Moreover, the number of employees is negatively associated with both transactions implying it is costlier for firms to conduct either a buy-in or buy-out transaction. While union density is positively associated with buy-ins, it has a negative effect on the likelihood of buy-outs suggesting that unions support buy-in but not buy-out transactions. This may be potentially explained by the fact that the latter are associated with with plan winding-ups.
27
Guchshina, Yekaterina. "Pension system in the United Kingdom and the shift from DB to DC scheme." Master's thesis, Instituto Superior de Economia e Gestão, 2018. http://hdl.handle.net/10400.5/18466.
Full textAbstract:
Mestrado em Actuarial ScienceThis paper examines the key issues relating to the UK pension system. It reviews the current system of pension provision, describes the recent reforms, and checks the legal regulatory and actuarial framework for occupational pension schemes. Also, it outlines the different types of risks and returns from membership of defined benefit and defined contribution pension schemes and advantages and disadvantages of transferring out from the defined benefits scheme to defined contribution one. The main point was to examine if the financial regulatory guidance that "an adviser should start from the assumption that a transfer will be unsuitable" is outdated and whether a transaction is right for the individual and should be assessed on a case by case basis from a neutral starting position.
info:eu-repo/semantics/publishedVersion
28
Zhang, Ting. "Three essays on corporate pension underfunding , securities valuation and market efficiency /." View online ; access limited to URI, 2009. http://0-digitalcommons.uri.edu.helin.uri.edu/dissertations/AAI3368009.
Full text
29
Johnson, Robert L. Jr, and Peter R. Shepard. "Defined contribution pension plans : can the real estate industry tap this growing pool of capital?" Thesis, Massachusetts Institute of Technology, 1996. http://hdl.handle.net/1721.1/67643.
Full textAbstract:
Thesis (M.S.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 1997 [first author]; and, Thesis (M.S.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 1996 [second author].Includes bibliographical references.
by Robert L. Johnson, Jr. & Peter R. Shepard.
M.S.
30
Zhao, de Gosson de Varennes Yuwei. "Benefit Design, Retirement Decisions and Welfare Within and Across Generations in Defined Contribution Pension Schemes." Doctoral thesis, Uppsala universitet, Nationalekonomiska institutionen, 2016. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-274253.
Full textAbstract:
Essay 1 (with Juha Alho and Edward Palmer): All around the world, public pension schemes are moving in the direction of non-financial (NDC) and financial defined contribution (DC) schemes. Both rely on accurate projections of life expectancy in the creation of annuities. Accurate projections are critical for system stability, individual utility and inter-generational welfare. This paper suggests a path-breaking innovation that changes the perspective from the Lee-carter (LC) family of trend models which assume a constant rate of change in mortality over time. Our approach is to project the cohort life expectancy on basis of the specific cohort rate of change in mortality. This relaxes the strong trend assumption underlying the LC model, which is the reason why LC model does not work well in the phase of accelerating or decelerating mortality. We use unisex mortality data for $8$ countries to test the performance of our approach both ex-post and ex-ante. The ex-post experiment shows that our approach generally performs better when the rate of change in mortality is accelerating and performs as well as LC model when the rate of change is time-invariant. The ex-ante experiment, on the other hand, shows that our model almost always delivers higher projection of remaining life expectancy than the LC model for the more recent cohorts, which is consistent with the ex-post experimental results.Essay 2: Due to the systematic underestimation of cohort life expectancy, NDC pension schemes face a financial risk that can leads to inter-generational unfairness, given the current practice. This paper proposes an alternative method of computing annuity to address this problem. The proposal is to adjust the annuity based on re-estimations of the remaining life expectancy at intervals after retirement, but only up to a ceiling age. The scheme is assessed using 208 cohort annuity pools from eight sample countries. This experiment shows that the proposed scheme succeeds in reducing the inter-generational unfairness for 60-80% of the cohort annuity pools, compared to current practice of fixing the annuity at age 65. Because the adjustment is borne by the relatively large group of younger persons, the per capita change in utility is rather small assuming risk neutrality.
Essay 3: This paper studies how the incentive to retire in a DC (NDC) scheme is influenced by engaging private information on life expectancy. This is an important question since the decisions made under the two scenarios, optimizing using the private life expectancy or the cohort average made available by the pension provider, create different welfare and financial outcomes. The analytical framework is a standard life-cycle model, accounting for monetary gain from work and non-monetary gain from leisure. The unique feature here is that the individual life expectancy is an explicit driver of disutility of work. The theoretical result is that prevailing private information of a longer-than-average life expectancy can lead to both advancing and delaying retirement, depending on other factors determining utility. The numerical example using Swedish data proves the theoretical results and suggests a rather small average impact on the choice of retirement by engaging private information of life expectancy.
Essay 4: Pensions in the increasingly popular Notional Defined Contribution (NDC) Pay-as-You-Go Schemes are granted based on cohort-specific life expectancy, regardless socioeconomic differences. This risks perverse intra-generational and unintended inter-generational transfers. This paper introduces an alternative with separate annuity pools for different socioeconomic classes. Using unique Swedish data and the Swedish NDC pension system as an example, the analysis shows a significant gap in life expectancy between socioeconomic classes defined by occupation. In the Swedish context, this implies a perverse transfer of 5% of the pension capital from the manual workers to the non-manual workers, which can be abolished by using the group plan. In addition, the group plan also lessens the risk of inter-generational transfers resulting from the gap in life expectancy.
31
Anjos, Gustavo Saraiva dos. "Pensions accounting and value relevance." Master's thesis, NSBE - UNL, 2012. http://hdl.handle.net/10362/9588.
Full textAbstract:
A Work Project, presented as part of the requirements for the Award of a Masters Degree in Finance from the NOVA – School of Business and EconomicsThe importance of this research is related with the value of the value relevance literature and its contribution to accounting setters. It is indeed emphasized by the changes in IAS 19 proposed by the IASB in 2010. In this context, the primary objective of this study is to provide a literature review regarding post-retirement benefits with focus in defined benefit plans, taking into consideration the way to account for that and its relation with equity value and also the value relevance from an investor perspective within benefit plans accounting. As conclusion, we identified in previous literature that the full recognition of actuarial gains and losses in equity is more value relevant to the investor, wich is according the last amendment of IAS 19, and its main proposition is the elimination of the corridor approach.
32
Lennox, Peter. "Employer accounting for defined benefit superannuation plans : current practices and the impact of ED 53 "Accounting for employee entitlements" /." Title page, and contents only, 1993. http://web4.library.adelaide.edu.au/theses/09C/09cl568.pdf.
Full text
33
Cong, Yongqing. "Sustainable Public Pension System for Florida Local Governments: Financial Solvency, Paradigm Switch, and Interperiod Equity." FIU Digital Commons, 2014. http://digitalcommons.fiu.edu/etd/1455.
Full textAbstract:
The issue of increasing unfunded pension liabilities of state and local governments has drawn increasing attentions in the last few years, especially after the 2008 stock market downturn. To maintain sustainability many state and local governments have put public pension reform at the top of their priority list. Previous research and practices provide two strategies to reform the current pension systems: Incremental changes to amend the existing defined benefit plans (DB plans), and the pension model switch from the DB model to defined contribution plans (DC plans).
This study aims to uncover reform strategies to cope for public pension systems. It first examined the appropriateness of the incremental reform strategies by identifying the determinants of the financial solvency of DB plans, utilizing the existing panel data of 151 local DB plans in Florida municipalities. Second, it gathered the primary data through the surveys and interviews with the Finance and HR directors in Florida local governments to analyze their perceptions of public pension reform and reveal their readiness to conduct the public pension paradigm switch. These approaches revealed the critical interperiod equity issue along with the impact of the two-tier benefit structure during the recent pension reform.
The results suggest that incremental reform strategies that reduce benefits and increase contributions are not effective in improving the financial solvency of public DB plans. The alternative reform approach—the DB-to-DC transition—is attractive to local governments because it will relieve the employer of the pension cost burden and transfer the investment risk to employees themselves. The transition is also politically palatable because the taxpayer sentiment is not supportive of what are perceived to be generous retirement benefit of public employees. Meanwhile, local governments are hesitant to implement the paradigm switch due to prohibitive transition costs, political pressure, and perhaps more importantly, the potential negative impacts to public recruitment and retention. Local officials do not perceive a reduction of morale with the two-tier benefit structure at the present time; they believe this issue will solve itself along the retirement of senior employees.
34
Barras, Rita Andreia Capelinha. "What is the best accounting policy for gains and losses in pensions?" Master's thesis, NSBE - UNL, 2011. http://hdl.handle.net/10362/10052.
Full textAbstract:
A Work Project, presented as part of the requirements for the Award of a Masters Degree in Finance from the NOVA – School of Business and EconomicsThe importance of this research is emphasized by the changes in IAS 19 proposed by the IASB in 2010. In this context, the primary objective of our analysis is to provide a comparison between the three allowed methods to account for the recognition of actuarial gains and losses, taking into consideration their value relevance for the investor, within defined benefit plans accounting. Our results provide evidence that full recognition of actuarial gains and losses in equity is more value relevant to investors than full recognition in the income statement, and than the recognized smoothed net pension liability through the corridor approach.
35
Stoycheva, Rayna L. "Sustainable governance and management of defined benefit plans in the pubic sector: lessons from the turbulent decade of 2000-2009." Diss., Georgia Institute of Technology, 2011. http://hdl.handle.net/1853/41227.
Full textAbstract:
This study examined the determinants of public pension fund performance through the lens of agency theory. The study sought to answer the following questions: (1) How much of the fluctuation in the performance of pension plans is due to political interference - either directly from decisions made by legislatures or through the governance structure of the pension boards, after controlling for asset allocation, plan size, and other external factors? (2) Do pension board expertise, education and training, and information disclosure requirements improve the performance of pension plans? (3) Do pension trustees strategically determine the actuarial rate of return (discount rate) in order to reduce contributions in times of fiscal stress for the pension sponsor? Using longitudinal data of pension fund performance over the period 2000 to 2009 and instrumental variables methods to address endogeneity issues, the study found partial support for the agency theory hypotheses. The results indicate that political interference through reduced contributions was the main factor explaining pension performance. There was no direct evidence about the negative impact of politically appointed trustees on pension performance. The impact of these findings for current policy and future research are discussed.
36
Stoycheva, Rayna L. "Sustainable Governance and Management of Defined Benefit Plans in the Public Sector: Lessons From the Turbulent Decade of 2000-2009." Digital Archive @ GSU, 2011. http://digitalarchive.gsu.edu/pmap_diss/44.
Full textAbstract:
This study examined the determinants of public pension fund performance through the lens of agency theory. The study sought to answer the following questions: (1) How much of the fluctuation in the performance of pension plans is due to political interference - either directly from decisions made by legislatures or through the governance structure of the pension boards, after controlling for asset allocation, plan size, and other external factors? (2) Do pension board expertise, education and training, and information disclosure requirements improve the performance of pension plans? (3) Do pension trustees strategically determine the actuarial rate of return (discount rate) in order to reduce contributions in times of fiscal stress for the pension sponsor? Using longitudinal data of pension fund performance over the period 2000 to 2009 and instrumental variables methods to address endogeneity issues, the study found partial support for the agency theory hypotheses. The results indicate that political interference through reduced contributions was the main factor explaining pension performance. There was no direct evidence about the negative impact of politically appointed trustees on pension performance. The impact of these findings for current policy and future research are discussed.
37
Durtschi, Cindy 1953. "The influence of changes in accounting and tax regimes on the emphasis placed by firms on defined benefit pension plans." Diss., The University of Arizona, 1998. http://hdl.handle.net/10150/288854.
Full textAbstract:
During the last ten years, the number of workers covered by defined benefit retirement plans has fallen precipitously. At the same time the number of workers covered by defined contribution plans has climbed to record levels. This study examines whether the changes in accounting and tax regimes contributed to the decreasing emphasis by firms on defined benefit pension plans. I control for economic variables identified in prior studies as determinants of pension choice. I also control for variables identified in the popular press as being responsible for the change in emphasis. This study extends prior pension choice literature by looking at previously identified pension determinants over an extended period of time and interacts those determinates with changes in accounting and tax regimes. I find that both the changes in accounting and tax regimes motivated firms to de-emphasize defined benefit plans.
38
Lu, Bei Economics Australian School of Business UNSW. "Economic impacts of China's pension reform: provincial and national contexts." Publisher:University of New South Wales. Economics, 2009. http://handle.unsw.edu.au/1959.4/43590.
Full textAbstract:
This thesis provides a range of analyses to examine the current Chinese pension reform in both provincial and national contexts, with special emphasis on coverage increase and its long term financial implications. Quantitative assessment includes econometric analysis of survey data initiated and organized by the author and her colleagues. Special models are designed to reflect the transitional characteristics of the current Chinese pension system. The results confirm that the coverage increase delays the system-aging process, through labor migration and urbanization, by about 20 years. But a funding crisis is inevitable if no parametric reforms could be made in the current system and if the system is not well managed. Policy suggestions are made in line with the empirical analysis and model results. In addition, some structural pension reform options are discussed. Two Notional Defined Contribution (NDC) applications are presented and simulations indicate that an NDC system may be effective in smoothing the financial pressure for government while maintaining adequate levels of individual retirement benefit. In the final part of the thesis, a hypothetical safety net is assessed in the context of the current policy framework, and its cost is examined. The thesis introduces new data and first hand information about Chinese pension reform in a provincial context to reflect the features of the national system.
39
Iglesias, Carlos A. Kim Asa D. "Knowledge of the military retirement system among Naval Postgraduate School officers and analysis of associated retirement information sources." Monterey, Calif. : Naval Postgraduate School, 2009. http://edocs.nps.edu/npspubs/scholarly/MBAPR/2009/Jun/09Jun%5FIglesias%5FMBA.pdf.
Full textAbstract:
"Submitted in partial fulfillment of the requirements for the degree of Master of Business Administration from the Naval Postgraduate School, June 2009."Advisor(s): Henderson, David R. ; Eitelberg, Mark J. "June 2009." "MBA professional report"--Cover. Description based on title screen as viewed on July 14, 2009. Author(s) subject terms: Military Retirement, Retirement Information Sources, Retirement Information Systems, General Military Training, Military Compensation, Defined Benefit Plan, Defined Contribution Plan, Military Pension, Military Retirement Fund, and Military Retirement Communication Modes. Includes bibliographical references (p. 73-74). Also available in print.
40
Julie, Elmerie. "A mathematical model for managing equity-linked pensions." Thesis, University of the Western Cape, 2007. http://etd.uwc.ac.za/index.php?module=etd&action=viewtitle&id=gen8Srv25Nme4_1071_1181655014.
Full textAbstract:
Pension fund companies manage and invest large amounts of money on behalf of their members. In return for their contributions, members expect a benefit at termination of their contract. Due to the volatile nature of returns that pension funds attain, pension companies started attaching a minimum guaranteed amount to member&rsquo
s benefits. In this mini-thesis we look at the pioneering work of Brennan and Schwartz [10] for pricing these minimum guarantees. The model they developed prices these minimum guarantees using option pricing theory. We also look at the model proposed by Deelstra et al. which prices minimum guarantees in a stochastic financial setting. We conclude this mini-thesis with new contributions where we look at simple alternative ways of pricing minimum guarantees. We conclude this mini-thesis with an approach, related to the work of Brennan and Schwartz [10], whereby the member&rsquo
s benefit is maximised for a given minimum guaranteed amount, which comprises of multi-period guarantees. We formulate a method to find the optimal stream of these multi-period guarantees.
41
Gomez, Ramon. "Who Can Retire with a 401(k)? Assessing the Effectiveness of Plans in the Changing Environment Around Retirement Planning in the United States." Scholarship @ Claremont, 2017. http://scholarship.claremont.edu/cmc_theses/1661.
Full textAbstract:
Over the past three decades, employer-sponsored 401(k) plans have grown in popularity as they have proved to be a valuable benefit employers can provide to employees and tax-deductible expense that employers can easily account for on their books. However, a major concern around these plans is that they have come to take the place of traditional pension plans offered by employers, forcing employees to assume full responsibility for their retirement savings. This paper evaluates the overall effectiveness of 401(k)s at the top 50 companies in the Fortune 100, examining participation rates, account balances, and employer contributions. It concludes that employees that have 401(k)s at these 50 companies fare much better than the average American with regard to retirement savings. Nonetheless, the substitution of traditional pensions with 401(k) plans by companies in the United States is problematic. Employees, which previously could rely on a company pension in retirement, are unintentionally delaying retirement due to a lack of savings. Furthermore, a growing number of workers without retirement savings will certainly put a strain on Social Security funds in the coming decades.
42
Zhang, Yumeng. "Optimal plan design and dynamic asset allocation of defined contribution pension plans : lessons from behavioural finance and non-expected utility theories." Thesis, City University London, 2009. http://openaccess.city.ac.uk/12031/.
Full textAbstract:
The question of optimal asset allocation strategy for defined contribution (DC) pension plans is addressed. A primary motivation for this study is provided by the recent literature on behavioural finance and intertemporal life-cycle investment theory. In this thesis two alternative utility forms are considered: loss aversion and Epstein-Zin recursive utility. We develop a dynamic-programming-based numerical model with uninsurable stochastic labour income and borrowing constraints. In the loss aversion case, members are assumed to be loss averse with a target replacement ratio at retirement and a series of suitably defined interim target prior to retirement. We also extend the intertemporal life-cycle saving and investment theory to the dynamic asset allocation problem of DC pension schemes. A new approach to model contribution and investment decisions with focus on the member’s desired pattern of consumption over the lifetime (based on Epstein-Zin utility preference) is proposed. The thesis draws on empirical evidence of salary scales and loss aversion parameters from UK households, with labour income progress estimated from the New Earnings Survey and loss aversion parameters estimated on the basis of face-to-face interviews with 966 randomly selected UK residents.
43
van, den Bergh-Mehner Stefanie. "Anlagestrategien für Pensionsvermögen im Rahmen von Contractual Trust Arrangements." Doctoral thesis, Universitätsbibliothek Chemnitz, 2012. http://nbn-resolving.de/urn:nbn:de:bsz:ch1-qucosa-81815.
Full textAbstract:
Die vorliegende Arbeit behandelt die Anlage von Pensionsvermögen im Rahmen von Contractual Trust Arrangements. Es wird untersucht, welche Anlagestrategien sich unter Berücksichtigung bilanzieller, verpflichtungs- und vermögensseitiger Rahmenbedingungen zur Anlage von Pensionsvermögen eignen. Anhand eines geeigneten Anlagemodells für Pensionsvermögen und der Durchführung einer stochastischen Simulation wird analysiert, welchen Einfluss unterschiedliche Anlagestrategien auf die Entwicklung des Pensionsvermögens haben. Die Arbeit geht zunächst auf den Hintergrund der betrieblichen Altersversorgung und Contractual Trust Arrangements in Deutschland ein. Zur Abbildung der Verpflichtungsseite und der Mitarbeiterstruktur des Unternehmens wird unter Einbezug aktuarischer Ansätze ein Mitarbeitermodell entwickelt. Das in der Arbeit entwickelte Portfoliomodell integriert die Verpflichtungs- und Vermögensseite und zeigt, wie das Vermögen zur Deckung leistungsorientierter Zusagen zur betrieblichen Altersversorgung unter Einbezug der Unternehmensperspektive mit Hilfe dynamischer Risikonebenbedingungen geeignet angelegt werden kann.
44
van, den Bergh-Mehner Stefanie. "Anlagestrategien für Pensionsvermögen im Rahmen von Contractual Trust Arrangements." Doctoral thesis, Universitätsbibliothek Chemnitz, 2011. http://nbn-resolving.de/urn:nbn:de:bsz:ch1-qucosa-79062.
Full textAbstract:
Die vorliegende Arbeit behandelt die Anlage von Pensionsvermögen im Rahmen von Contractual Trust Arrangements. Es wird untersucht, welche Anlagestrategien sich unter Berücksichtigung bilanzieller, verpflichtungs- und vermögensseitiger Rahmenbedingungen zur Anlage von Pensionsvermögen eignen. Anhand eines geeigneten Anlagemodells für Pensionsvermögen und der Durchführung einer stochastischen Simulation wird analysiert, welchen Einfluss unterschiedliche Anlagestrategien auf die Entwicklung des Pensionsvermögens haben. Die Arbeit geht zunächst den Hintergrund der betrieblichen Altersversorgung und Contractual Trust Arrangements in Deutschland ein. Zur Abbildung der Verpflichtungsseite und der Mitarbeiterstruktur des Unternehmens wird unter Einbezug aktuarischer Ansätze ein Mitarbeitermodell entwickelt. Das in der Arbeit entwickelte Portfoliomodell integriert die Verpflichtungs- und Vermögensseite und zeigt, wie das Vermögen zur Deckung leistungsorientierter Zusagen zur betrieblichen Altersversorgung unter Einbezug der Unternehmensperspektive mit Hilfe dynamischer Risikonebenbedingungen geeignet angelegt werden kann.
45
Park, Youngkyun. "Essays on retirement plans and fund commonalities within mutual fund families." Diss., Temple University Libraries, 2008. http://cdm16002.contentdm.oclc.org/cdm/ref/collection/p245801coll10/id/19082.
Full textAbstract:
Business AdministrationPh.D.
This dissertation studies underfunding in defined benefit (DB) pension plans and firms' contribution behavior, 401(k) plan participant investments in lifecycle funds under plan sponsors' initiative, and fund commonalities within mutual fund families. Responding to the recent decline in DB pension funding, firms have increased pension contributions to their underfunded plans. In the first essay I empirically examine firms' contribution behavior to underfunded DB plans and funding choice for pension contributions. I find that firms reveal different sensitivities of pension contributions to underfunding across aggregate funding levels. Furthermore, at a lower funding level firms have the greater sensitivity of pension contributions to underfunding and significantly utilize the tax deductibility of pension contributions. As for a funding choice to fund pension deficits, firms use debt financing at a low funding level, but utilize internal funding by decreasing capital expenditures at a lower funding level. Firms that use the debt financing are likely to have investment-grade credit ratings or high debt leverage, while firms that use the internal funding are likely to be high-levered ones. Recently lifecycle funds have rapidly grown in self-directed retirement plans. Despite the increasing popularity among plan sponsors and participants, there are few empirical studies on lifecycle funds. In the second essay, I examine the recent lifecycle fund adoption behavior of 401(k) plan participants from 2004 to 2006. I find that the likelihood of participants changing an investment strategy to adopt lifecycle funds is not significantly affected by participant demographic characteristics, but by participant account and plan design features. This study extends our understanding of 401(k) plan participants' investment behavior by finding (1) that the substitution of lifecycle funds for balanced funds, as well as the designation of lifecycle funds as a plan default, strongly affect participants' investments in lifecycle funds and (2) that balanced fund holdings of participants are negatively associated with their lifecycle fund investments. Mutual funds account for a significant portion of household financial assets and retirement assets. An understanding of characteristics of mutual funds is crucial to fund investors--especially those whose retirement nest eggs are in mutual funds. In the final essay, I examine the impacts of fund commonalities within mutual fund families on fund characteristics in terms of return residual correlations and fund operating expenses. As fund commonalities within a fund family, I focus on common stock holdings and common management of funds. I find that common stock holdings and an existence of a common manager of funds are positively related to return residual correlations, but negatively related to fund operating expenses. This finding suggests that when investors select low-cost equity funds within a family, they should be aware that there exists an investment risk that the fund commonalities that lower fund operating expenses may additionally increase return correlations of the funds.
Temple University--Theses
46
Segodi, Vusi Oscar. "A law regulating taxation of pension benefits in South Africa." Thesis, University of Limpopo, 2015. http://hdl.handle.net/10386/1435.
Full textAbstract:
Thesis (LLM. (Labour Law)) -- University of Limpopo, 2015This mini-dissertation discusses the legal reform of the taxation of pension benefits under the South African law. This study also discusses how South African pension benefits are taxed in instances wherein the member exits the fund either as a result of resignation, death, dismissal, retrenchment, disability and retirement. It further discusses the comparative study between South Africa, Canada, Australia and United Kingdom
47
Domingos, José Amílcar Neves. "Pension plan funding and market value of the firm : a study on portuguese companies." Master's thesis, Instituto Superior de Economia e Gestão, 2017. http://hdl.handle.net/10400.5/14704.
Full textAbstract:
Mestrado em FinançasO objetivo da presente Tese Final de Mestrado é testar a existência de um efeito direto entre o nível de financiamento do fundo de pensões de uma empresa e o seu valor de mercado. Constituindo uma parte vital do mercado de capitais, o estudo de ativos e passivos associados a planos de pensões é de particular interesse para investidores, shareholders e market makers. Dois métodos distintos, um modelo cross-sectional e um estudo de evento "variable-effect" são utilizados para testar a hipótese de que um aumento do défice do plano de pensões seja incorporado pelo mercado através de um decréscimo de igual dimensão no valor de mercado de uma firma. Para o período 2010-2015 e uma amostra de firmas do PSI Geral, ambos os modelos parecem indicar que o valor de mercado da firma não diminui devido a um aumento do défice no plano de pensões, e que o passivo associado a planos de pensões é apenas mais um componente do passivo. Estes resultados sugerem que os shareholders não têm em conta o nível de financiamento do plano de pensões na avaliação do valor da firma em separado, integrando-o na avaliação do passivo de forma indiferenciada.
The objective of the following Master's Final Work is to test the existence of a direct effect between the funding level of a firm's pension fund and its respective market price. As a relevant part of capital market, the study of pension assets and obligations is of particular importance to investors and market makers. Two distinct methods, a cross-sectional model and a "variable-effect" event study will be used to assess the hypothesis that an increase in pension deficit is reflected in the market value of a firm by a decrease of equal magnitude. For the period between 2010 and 2015, for a selected sample of PSI Geral firms, both models seem to indicate that a firm's market value is not reduced by an increase in pension deficit, and that pension liabilities are already integrated in corporate debt. These results suggest that shareholders do not take in account pension plan funding status when valuing the firm in a way contrasting with the normal evaluation of debt.
info:eu-repo/semantics/publishedVersion
48
Hagen, Johannes. "A History of the Swedish Pension System." Uppsala universitet, UCFS, 2013. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-199825.
Full textAbstract:
This report provides an extensive overview of the history of the Swedish pension system. Starting with the implementation of the world's first universal public pension system in 1913, the report discusses the political as well as the economic background to each major public pension reform up until today. It presents the rules and the institutional details of these reforms and discuss their implications for retirement behavior, the general state of the economy and the political environment. Parallel to the development of the public pension system, a comprehensive and quite complex occupational pension system has emerged. This report describes the historical background and the institutional details of the four largest agreement-based occupational pension schemes in Sweden.
49
Sejanamane, Nkhahle Daniel. "Challenges in distribution of old age pensions in Lesotho." Thesis, Nelson Mandela Metropolitan University, 2017. http://hdl.handle.net/10948/20477.
Full textAbstract:
The research set out to explore the nature of challenges in distribution of old age pensions in Lesotho. Poor institutional capacity failed the implementing agency, the Department of Pensions; to set up competent administrative structures to run run the pensions effectively and efficiently. A number of challenges have been identified, some of which were: inadequate supervision of the paying officers, fraud by workers and community agents, missing funds, insufficient resources, inadequate administrative capacity, overworked employees, faulty targeting, soft and discriminatory approach to non-compliance with rules and multiple use of identity documents by recipients. On the other hand, a number of opportunities have been identified to counteract the challenges. The main recommendation of the study was the engagement of mobile phone-based money transfer facilities to transfer the old age pensions from the government to the recipients. The Department of Pensions should make use of baseline database like information from civil registration agency like the Ministry of Home Affairs to confirm the validity of the pension recipients. Other recommendations included moving the division of old age pensions from the Pensions Department to the Ministry of Social Development which is the controlling body for other forms of social grants in Lesotho. The Ministry of Social Development is regarded as well equipped with qualified staff and facilities to deal with vulnerable people like the elderly.
50
Aguiar, Emílio Júnior Ribeiro. "Early retirement reductions covered by a DC pension plan : case study analysis for Portugal." Master's thesis, Instituto Superior de Economia e Gestão, 2020. http://hdl.handle.net/10400.5/21065.
Full textAbstract:
Mestrado em Actuarial ScienceEm Portugal, o envelhecimento da população desafia a sustentabilidade financeira do sistema de Segurança Social. Ao longo dos anos, muitas emendas legislativas foram introduzidas no sistema de Previdência Social com o objetivo de torná-lo auto-sustentável, todavia existe uma dificuldade para entregá-lo sem restringir os benefícios de aposentadoria devido a evolução demográfica. Inevitavelmente, isso leva a impactos negativos nas pensões de aposentadoria por idade. As administrações anteriores combinaram essas reformas com medidas que reforçam o estabelecimento de esquemas privados de fundos de pensões, dando-lhe um papel mais preponderante, de forma a diversificar as fontes de renda de aposentadoria. No contexto de aumento da responsabilidade individual pela adequação da renda de aposentadoria. Esta dissertação analisa a pensão de velhice com especial enfoque nas reformas antecipadas, dada a forte penalização que existe. Além disso, verifica-se a possibilidade de um plano de contribuição definida para mitigar totalmente essas reduções. Portanto, são descritos os dois sistemas, o público e o complementar.
In Portugal, population ageing is challenging the financial sustainability of the Social Security system. Throughout the years many legislative amendments have been introduced in the Social Security system, with the goal to make it self-sustainable, but it is struggling to deliver it without restricting old-age benefits due to the increase of the elderly population. Inevitably, this leads to negative impacts in the old-age retirement pensions. Past administrations have combined these reforms with measures to reinforce the establishment of the funded private pension sector, giving it a more prominent role, so as to diversify the sources of retirement income. In the context of increasing the individual responsibility for the adequacy of retirement income. This paper analyses the old-age benefits with special focus in the early retirement option, given the heavy penalties inherent to this option. Also, examines the possibility of fund a DC pension plan to fully mitigate those penalties.
info:eu-repo/semantics/publishedVersion