Journal articles on the topic 'Guaranteed Lifetime Withdrawal Benefits'

AbstractWe examine the value of guaranteed lifetime withdrawal benefit (GLWB) options embedded in variable annuities in two different tax regimes. The New Zealand (NZ) system taxes investment income when it is earned, whereas the system in the United States defers taxes on annuity investment income until it is paid out. We examine the effects of these tax differences on the charges collected by the issuer as well as on the value of the contract to the policyholder. We find that the issuer’s charges are typically lower (higher) in the NZ tax regime when the expected fund earnings are low (high) or the fund volatility is high (low). On the other hand, the value to the policyholder is always lower in the NZ tax regime due to the earlier tax payments.We also find that the value of the GLWB in the NZ tax regime is nearly always below the value of an ordinary payout annuity with the same tax rules.

The extant literature on the Guaranteed Lifetime Withdrawal Benefits (GLWB) financial risk is abundant, however, few articles investigate the option offered to the policyholder with respect to the initiation of the contract and examine this impact on the profitability of the product for the insurer. We extend the analysis carried out by Huang et al. (IME, 2014) on the optimal initiation of the product with GLWB. First, we add an additional dimension in the analysis to account for the insurer losses as a function of the age for disbursement chosen by the policyholder. Then, we develop a novel analytical framework to determine by numerical methods the extent to which an insurer, expecting his client to choose when to receive benefits to maximize the value of his variable annuity contract, should change its actuarially fair fee structure. We show that the fair premium is a function of the insured policyholder age when he bought the contract. This result runs counter to the current fee structure and practice in the Canadian insurance industry with insurers charging a uniform level of fees regardless of the policyholder biological age when the contract is issued.

AbstractThis paper introduces the Fourier Space Time-Stepping algorithm to the valuation of variable annuity (VA) contracts embedded with guaranteed minimum withdrawal benefit (GMWB) riders when the underlying fund dynamics evolve under the influence of a regime-switching model. Mortality risk is introduced to the valuation framework by incorporating a two-factor affine stochastic mortality model proposed in Blackburn and Sherris (2013). The paper considers both, static and dynamic policyholder withdrawal behaviour associated with GMWB riders and assesses how model parameters influence the fees levied on providing such guarantees. Our numerical experiments reveal that the GMWB fees are very sensitive to regime-switching parameters; a percentage increase in the force of interest results in significant decrease in guarantee fees. The guarantee fees increase substantially with increasing volatility levels. Numerical experiments also highlight an increasing importance of mortality as maturity of the VA contract increases. Mortality has less impact on shorter maturity contracts regardless of the policyholder's withdrawal behaviour. As much as mortality influences pricing results for long maturities, the associated guarantee fees are decreasing functions of maturities for the VA contracts. Robustness checks of the Fourier Space Time-Stepping algorithm are performed by making numerical comparisons with several existing valuation approaches.

AbstractThis paper analyzes the framework of German participating payout life annuities (PLAs), which offer guaranteed minimum benefits as well as participation in insurers' surpluses. We show that the process of sharing surpluses between shareholders and policyholders follows transparent and consistent rules. Subsequently, we develop an asset-liability model for a stylized German life insurer that offers PLAs to evaluate benefit variability and insurer stability given stochastic mortality and capital market developments. Our results suggest that guaranteed benefits can be provided with high credibility via PLAs, while, at the same time, annuitants receive attractive money's worth ratios. Moreover, we show that it might be difficult to offer a fixed benefit annuity providing the same lifetime utility as a PLA for the same premium and a comparably low insolvency risk. Overall, PLA schemes may be an efficient way to deal with risk factors that are highly unpredictable and difficult to hedge over the long run, such as systematic longevity and investment risks.

Purpose The life insurance industry has been exposed to high levels of longevity risk born from the mismatch between realized mortality trends and anticipated forecast. Annuity providers are exposed to extended periods of annuity payments. There are no immediate instruments in the market to counter the risk directly. This paper aims to develop appropriate instruments for hedging longevity risk and providing an insight on how existing products can be tailor-made to effectively immunize portfolios consisting of life insurance using a cointegration vector error correction model with regime-switching (RS-VECM), which enables both short-term fluctuations, through the autoregressive structure [AR(1)] and long-run equilibria using a cointegration relationship. The authors also develop synthetic products that can be used to effectively hedge longevity risk faced by life insurance and annuity providers who actively hold portfolios of life insurance products. Models are derived using South African data. The authors also derive closed-form expressions for hedge ratios associated with synthetic products written on life insurance contracts as this will provide a natural way of immunizing the associated portfolios. The authors further show how to address the current liquidity challenges in the longevity market by devising longevity swaps and develop pricing and hedging algorithms for longevity-linked securities. The use of a cointergrating relationship improves the model fitting process, as all the VECMs and RS-VECMs yield greater criteria values than their vector autoregressive model (VAR) and regime-switching vector autoregressive model (RS-VAR) counterpart’s, even though there are accruing parameters involved. Design/methodology/approach The market model adopted from Ngai and Sherris (2011) is a cointegration RS-VECM for this enables both short-term fluctuations, through the AR(1) and long-run equilibria using a cointegration relationship (Johansen, 1988, 1995a, 1995b), with a heteroskedasticity through the use of regime-switching. The RS-VECM is seen to have the best fit for Australian data under various model selection criteria by Sherris and Zhang (2009). Harris (1997) (Sajjad et al., 2008) also fits a regime-switching VAR model using Australian (UK and US) data to four key macroeconomic variables (market stock indices), showing that regime-switching is a significant improvement over autoregressive conditional heteroscedasticity (ARCH) and generalised autoregressive conditional heteroscedasticity (GARCH) processes in the account for volatility, evidence similar to that of Sherris and Zhang (2009) in the case of Exponential Regressive Conditional Heteroscedasticity (ERCH). Ngai and Sherris (2011) and Sherris and Zhang (2009) also fit a VAR model to Australian data with simultaneous regime-switching across many economic and financial series. Findings The authors develop a longevity swap using nighttime data instead of usual income measures as it yields statistically accurate results. The authors also develop longevity derivatives and annuities including variable annuities with guaranteed lifetime withdrawal benefit (GLWB) and inflation-indexed annuities. Improved market and mortality models are developed and estimated using South African data to model the underlying risks. Macroeconomic variables dependence is modeled using a cointegrating VECM as used in Ngai and Sherris (2011), which enables both short-run dependence and long-run equilibrium. Longevity swaps provide protection against longevity risk and benefit the most from hedging longevity risk. Longevity bonds are also effective as a hedging instrument in life annuities. The cost of hedging, as reflected in the price of longevity risk, has a statistically significant effect on the effectiveness of hedging options. Research limitations/implications This study relied on secondary data partly reported by independent institutions and the government, which may be biased because of smoothening, interpolation or extrapolation processes. Practical implications An examination of South Africa’s mortality based on industry experience in comparison to population mortality would demand confirmation of the analysis in this paper based on Belgian data as well as other less developed economies. This study shows that to provide inflation-indexed life annuities, there is a need for an active market for hedging inflation in South Africa. This would demand the South African Government through the help of Actuarial Society of South Africa (ASSA) to issue inflation-indexed securities which will help annuities and insurance providers immunize their portfolios from longevity risk. Social implications In South Africa, there is an infant market for inflation hedging and no market for longevity swaps. The effect of not being able to hedge inflation is guaranteed, and longevity swaps in annuity products is revealed to be useful and significant, particularly using developing or emerging economies as a laboratory. This study has shown that government issuance or allowing issuance, of longevity swaps, can enable insurers to manage longevity risk. If the South African Government, through ASSA, is to develop a projected mortality reference index for South Africa, this would allow the development of mortality-linked securities and longevity swaps which ultimately maximize the social welfare of life assurance policy holders. Originality/value The paper proposes longevity swaps and static hedging because they are simple, less costly and practical with feasible applications to the South African market, an economy of over 50 million people. As the market for MLS develops further, dynamic hedging should become possible.

In this paper, we study the valuation of variable annuities for an insurer. We concentrate on two types of these contracts, namely guaranteed minimum death benefits and guaranteed minimum living benefits that allow the insured to withdraw money from the associated account. Here, the price of variable annuities corresponds to a fee, fixed at the beginning of the contract, that is continuously taken from the associated account. We use a utility indifference approach to determine the indifference fee rate. We focus on the worst case for the insurer, assuming that the insured makes the withdrawals that minimize the expected utility of the insurer. To compute this indifference fee rate, we link the utility maximization in the worst case for the insurer to a sequence of maximization and minimization problems that can be computed recursively. This allows to provide an optimal investment strategy for the insurer when the insured follows the worst withdrawal strategy and to compute the indifference fee. We finally explain how to approximate these quantities via the previous results and give numerical illustrations of parameter sensitivity.

This study aims to determine the perspective of Islamic law regarding the implementation of the system of buying and selling tupperware products that have a lifetime guarantee at PT. Nazila Jambi Nugraha Simpang Kawat, Jambi City. Another purpose of the research is to find out the positive impact of this system for sellers and buyers of tupperware products. Using a qualitative approach with data collection methods through interviews, documentation, and observation, the results of the study found: first, the distributor company has given books or catalogs to retail sellers or resellers as well as members or members to sell these products at prices listed for each product . Distributors give a discount of 30% for the resseller or member. Second, the view of Islamic law on the sale and purchase of tupperware products that are guaranteed, according to Islamic law there is still an element of openness regarding providing a lifetime guarantee. In the contract there must be openness between the two parties to avoid the existence of elements of fraud. Third, the positive impact on sellers and buyers is equally beneficial. For sellers to benefit and add friendship, buyers get the benefits of tupperware products.

Phase-type (PH) distributions are defined as distributions of lifetimes of finite continuous-time Markov processes. Their traditional applications are in queueing, insurance risk, and reliability, but more recently, also in finance and, though to a lesser extent, to life and health insurance. The advantage is that PH distributions form a dense class and that problems having explicit solutions for exponential distributions typically become computationally tractable under PH assumptions. In the first part of this paper, fitting of PH distributions to human lifetimes is considered. The class of generalized Coxian distributions is given special attention. In part, some new software is developed. In the second part, pricing of life insurance products such as guaranteed minimum death benefit and high-water benefit is treated for the case where the lifetime distribution is approximated by a PH distribution and the underlying asset price process is described by a jump diffusion with PH jumps. The expressions are typically explicit in terms of matrix-exponentials involving two matrices closely related to the Wiener-Hopf factorization, for which recently, a Lévy process version has been developed for a PH horizon. The computational power of the method of the approach is illustrated via a number of numerical examples.

5507^ Background: Annual transvaginal ultrasound (TVS) and serum CA125 screening for women at high-risk of Ovarian/Fallopian tube cancer (OC/FTC) in Phase 1 of UKFOCSS lacked sensitivity for early stage disease but downstaged disease volume and may have improved optimal debulking rates. More frequent screening might provide greater benefits. Here we report the final results of 4-monthly screening in one of the largest such trials worldwide. Methods: Between 14/06/2007 and 29/03/2012, 4,531 women at an estimated ≥10% lifetime risk of OC/FTC were recruited and screened by 42 UK centres for 14,263 women screen years. Screening comprised 4-monthly CA125 tests analysed by a risk of ovarian cancer algorithm, adjusted for menopausal status. TVS was annual in those with normal algorithm results, but was triggered sooner if results were non-normal. Women with suspicious scan and/or algorithm results were referred for consideration of surgical intervention. Participants were followed prospectively by centres, questionnaire and national cancer registries. Data was censored 365 days after final screen, withdrawal or death. Clinical trial information: 32794457.

Purpose The purpose of this study is to develop new type of reverse mortgage contract. How to provide adequate services and housing for an increasing number of people that are dependent on the help of others is a crucial question in the European Union (EU). The housing stock in Europe is not fit to support a shift from institutional care to the home-based independent living. Some 90% of houses in the UK and 70%–80% in Germany are not adequately built, as they contain accessibility barriers for people with emerging functional impairments. The available reverse mortgage contracts do not allow for relocation to their own adapted facilities. How to finance the adaptation from housing equity is discussed. Design/methodology/approach The authors have extended the existing loan reverse mortgage model. Actuarial methods based on the equivalence of the actuarial present values and the multiple decrement approach are used to evaluate premiums for flexible longevity and lifetime long-term care (LTC) insurance for financing adequate facilities. Findings The adequate, age-friendly housing provision that is appropriate to support the independence and autonomy of seniors with declining functional capacities can lower the cost of health care and improve the well-being of older adults. For financing the development of this kind of facilities for seniors, the authors developed the reverse mortgage scheme with embedded longevity and LTC insurance as a possible financial instrument for better LTC services and housing with care in assisted-living facilities. This kind of facilities should be available for the rapid growth of older cohorts. Research limitations/implications The numerical example is based on rather crude numbers, because of lack of data, as the developed reverse mortgage product with LTC insurance is a novelty. Intensity of care and probabilities of care in certain category of care will change after the introduction of this product. Practical implications The model results indicate that it is possible to successfully tie an insurance product to the insured and not to the object. Social implications The introduction of this insurance option will allow many older adult with low pension benefits and a substantial home equity to safely opt for a reverse mortgage and benefit from better social care. Originality/value While currently available reverse mortgage contracts lapse when the homeowner moves to assisted-living facilities in any EU Member State, in the paper a new method is developed where multiple adjustments of housing to the functional capacities with relocation is possible, under the same insurance and reverse mortgage contract. The case of Slovenia is presented as a numerical example. These insurance products, as a novelty, are portable, so the homeowner can move in own specialised housing unit in assisted-living facilities and keep the existing reverse mortgage contract with no additional costs, which is not possible in the current insurance products. With some small modifications, the method is useful for any EU Member State.

In 1981, panic disorder was officially recognized as a separate illness and not merely a component of generalized anxiety disorder. Panic disorder is characterized by panic attacks or unpredictable episodes of sudden and overwhelming feelings of fear or terror. The disorder has a lifetime prevalence rate of 1.6% to 2%, being more common in women than men; many patients do not seek treatment. The majority of patients who have panic disorder develop severe anxiety and agoraphobia; comorbidity with depression occurs in approximately 33%. Panic disorder seems to be chronic with significant morbidity and mortality, including suicide, in patients who are untreated. Fortunately, panic disorder can be successfully treated using several drugs, including antidepressants, imipramine and phenelzine, and the benzodiazepine, alprazolam. It is anticipated that the Federal Food and Drug Administration (FDA) will soon approve the first antipanic drug, alprazolam (Xanax, Upjohn, Kalamazoo, MI). The drug of choice for panic disorder is determined by careful evaluation of several drug and patient characteristics. Although alprazolam has some distinct advantages over the antidepressants, including faster onset of therapeutic response and greater patient acceptance, the major problem is drug dependence and withdrawal, especially after high-dose, long-term use. Alprazolam should never be abruptly discontinued, but slowly tapered according to individual response. The pharmacist can play a valuable role in educating patients regarding the efficacy of drug treatment, risks and benefits of individual therapeutic agents, as well as the risks of untreated panic disorder.

Purpose The purpose of this paper is to investigate how sustainability integrates the business strategy of Brazilian community supported agriculture (CSA) initiatives, and to understand the social, environmental and economic benefits to producers and consumers. Design/methodology/approach A case study was carried out through participant observation, using the techniques of ethnography, in addition to in-depth interviews and access to secondary data. Follow-up was carried out over two years and six months with two CSA initiatives. Findings The results indicated that the analyzed CSA activities address, in an integrated way, the social, environmental and economic dimensions of sustainability by promoting healthy diet, sustainable agriculture and social transformation to producers and consumers. Producers have their sales guaranteed due to previous consumers’ association; they also receive higher incomes, avoiding the rural exodus. In addition, their work conditions do not harm their health and the diversified production meets the consumption of their family group, increasing farmers’ autonomy. Regarding consumers, there is a strong emphasis on education for sustainability. It occurs primarily through face-to-face contact among participants, at times of basket withdrawal, follow-up visits to production and interaction events at farmers’ place. Exchanges of information, recipes, cooking classes, newsletters and internet interactions are also important. As these outputs, verified in a real situation, integrate the mission and the business proposal of these CSAs initiatives, it is possible to conclude that, in these analyzed situations, sustainability is incorporated into a business strategy. Sustainability is a structural component of the strategy, with practices in different levels of the business activity. Research limitations/implications As an exploratory study, the findings cannot be extrapolated to broader populations. To improve generalization, it would be beneficial to broaden the sample and pursue comparative research between countries and regions. Also, studies should examine which incentive structures and programs would relate more to better outcomes in education for sustainability and behavior chances. Practical implications From a managerial point of view, this study contributes by presenting emerging businesses in Brazil, which incorporated sustainability in their strategy, contributing with the need pointed out by Robinson (2004) to provide innovative and creative solutions toward sustainability. It also presents some alternatives to achieve objectives of the 2030 Agenda, especially objective 2 (related to food security) and 12 (improve sustainable production and consumption systems). This study also contributes by elucidating alternatives to promote education for sustainable consumption, presenting cases where consumers reported a more sustainable behavior. Originality/value This study contributes to the literature by filling the gap pointed out by Arzu and Erkan (2010), Nakamba, Chan and Sharmina (2017), Rossi et al. (2017) and Searcy (2016) about addressing all three dimensions of sustainability in an integrated way, by analyzing CSA initiatives (a need indicated by Brown and Miller, 2008), especially evaluating empirical cases of sustainability insertion in the business strategy, as proposed by Claro, Claro and Amâncio (2008) and Franceschelli, Santoro and Candelo (2018). This study also responded to the need pointed out by Benites Lázaro and Gremaud (2016) to further understand the insertion of sustainability in the context of Latin America.

Summary Time-lapse three-dimensional, or four-dimensional (4D), seismic has been under consideration by the industry for reservoir monitoring for more than a decade. It offers the possibility of identifying the interwell distribution of bypassed and untapped oil, of monitoring displacement heterogeneity, and of detecting uneven pressure depletion away from wells. If obtained, these detailed observations could be used to increase ultimate recovery, reduce production costs, and prevent surprises such as unexpectedly early breakthrough. But these benefits are not easily obtained, and are certainly not guaranteed. There are a number of factors that impact whether a 4D project will be successful, and a careful study of these is required to give a realistic expectation of what 4D can do for a specific reservoir. Numerous 4D seismic projects have been active over oil fields world wide, and successes, relative to each project's objectives, have been realized by field operators using a wide variety of data acquisition techniques (land, streamer, and seabed methods), and over a variety of field types, including both clastics and carbonates. This paper draws from this experience to present a generalized 4D project workflow, and reviews results from some of these recent projects as illustrations. In general, sufficient software tools, rock physics data, and experience now exist to conclude that 4D is a low-risk/high-benefit reservoir management tool. The key to a successful project, however, is determining what 4D can do in a specific field, which requires a careful feasibility study, clear reservoir management objectives, and high-quality and experienced seismic processing and interpretation. Introduction Time-lapse three-dimensional (3D), or four-dimensional (4D), seismic has received a great deal of industry attention and activity over the past few years, as evidenced by the number of conferences organized specifically for 4D seismic and by the number of papers presented at more general conferences. In addition, both the Society of Exploration Geophysicists (SEG) and Society of Petroleum Engineers (SPE) designated Distinguished Lecturers in 1998 that presented excellent material regarding 4D techniques1 and the integration of 4D data with other types of data to improve reservoir description.2 These presentations have been well attended all over the world as the industry seeks to learn more about 4D seismic. What's All the Excitement About? The majority of people are probably interested in the ability of 4D to monitor fluid movement within the reservoir, and subsequently to identify bypassed reserves that can be produced through targeted offset drilling. Another commonly stated benefit of 4D is improved characterization of the reservoir to allow more reliable predictions from reservoir simulation studies, especially as it relates to the effectiveness of water or gas injection processes. These are but two of the extremely valuable reservoir management benefits of 4D seismic; others can be found in the numerous papers on the subject. Is the Excitement Justified? As with most things, the answer is both yes and no. As concluded by several authors,1,3-13 4D has potential, and several case histories to date have shown 4D to work to some degree. It is important to recognize that 4D is a simple idea based on physically limited measurements, difficult processing, and a complex earth. In some sense, it is amazing that it ever works, but experience shows that it can work, and it is that experience that forms the basis for the cautious optimism presented in this paper. Planning for Success Western Geophysical and its predecessors have been doing 4D seismic research, development, planning, and commercial projects, since the early 1980's. From that experience has grown a sound understanding of what it takes to do a successful 4D project. This paper is a collection of brief case histories within the framework of the following systematic and generalized 4D work flow: establish a clear reservoir objective; perform a careful feasibility study on the field of interest; do a rapid analysis of existing overlapping datasets; characterize the static reservoir properties; acquire and (re)process new 3D seismic data; analyze time-lapse differences; and characterize the dynamic reservoir properties using 4D results. Most of the cases have been published or presented at recent conferences, to which the reader is referred for more detailed description and analysis. Establish a Clear Reservoir Objective. Two of the general reservoir objectives were mentioned previously, and repeating a longer list would only serve to heighten the expectation that 4D will solve all problems. In fact, there are a large number of problems that surface seismic cannot address because of the physical limitations of the measurement. For example, 4D will never be able to see the movement of a heavy oil/water interface in a 10 ft thick carbonate at 15,000 ft depth under a large gas cloud. Even if it could, that information would only be of use to you if that was the condition in your reservoir. The goal here is to define what needs to be learned about the reservoir so that the 4D project can be properly planned and the results can be measured against whether the needed information was, in fact, provided by the seismic data. To date, most 4D projects have been performed primarily as a geophysical exercise, rather than with a primary reservoir objective, in order to "test" the 4D technique. For these studies, the stated objective is to take two existing 3D datasets, which happen to have some overlap, and see what the difference between them shows. An example of such a rapid analysis is shown in a later section. The most common result is a suggestion of a difference and a recommendation that the datasets be reprocessed, because the acquisition and processing were of different vintages and for different purposes. However, because the objective is not driven by a reservoir need, there are few examples of even a good geophysical result being used to influence a development or production decision. The important point in setting the reservoir objective is that it be set by the reservoir engineer or asset team to gain needed information. Not only is every reservoir different, but the objective for a particular reservoir will change during its development and production lifetime. Once set, the objectives need to be evaluated as part of the feasibility study that follows to avoid unrealistic expectations.

AbstractThis study proposed and evaluated a new insurance product, i.e., the variable annuity product, accompanied by the health status and the guaranteed lifelong withdrawal benefit (GLWB). Due to specific problems, the insurance sector is now one of the riskiest industries. The aging of the population and rising medical service costs as a result of technological advancements are to blame for this. Thus one of the most basic needs in the health insurance sector is to design an innovative product. In this article, a mixed discrete-continuous time model is proposed to calculate the fair fee of the product, calculated using equilibrium condition between premium and benefits. We considered constant volatility and rate of interest along with health status benefits and hospitalization coverage. For an illustration of the capability of this product and some possible improvements in the product, a numerical study, and sensitivity analysis have been conducted. The results showed that the withdrawal amount and age have a significant impact on the cost. A rise in the initial insured age and withdrawal amount increases the fair fee of the product. The GLWB rider’s guaranteed amount and medical expenses are included in the withdrawal amount.

Abstract Decumulation Pathways are proposed to help achieve better retirement outcomes for those with Defined Contribution (DC) pensions. The DC fund is split into two parts, in proportions of the consumer’s choice. Most is allocated to the Pension Fund to provide a lifetime income, while the rest is placed in the Flexible Fund for flexible access and/or to leave as a legacy. The Flexible Fund is invested in flexi-access drawdown. The Pension Fund is invested in a guaranteed annuity, Collective Defined Contribution, or a Pooled Pension Fund which maintains individual DC funds but pools longevity risk between participants. An illustrative standard Decumulation Pathway is intended as a default solution, or can be tailored by the consumer. It uses the Pooled Pension Fund, an automated withdrawal strategy which ensures a lifetime income is provided and one that aims to increase in line with inflation, and a moderate risk investment strategy. The standard approach is evaluated using various metrics, indicating that it has as a strong chance of providing a higher income than could be obtained from an annuity or drawdown, with limited downside risk.

This study has been conducted to understand the Sukanya Samriddhi Yojana (SSY) scheme launched by the Government of India (GOI) for the girl child, to take care of their education and marriage. A composite index for measuring the performance of Indian states on SSY scheme investment was developed. It attempts to identify socioeconomic and psychological factors determining the SSY investment. A mixed method approach has been used to conduct the study. Normalized inverse Euclidean distance is applied for computing the composite index. We found that there exist significant regional differences between means of composite index of SSY in India. Male literacy, labor force participation, and women’s empowerment are significant positive predictors of composite index of SSY. The various motivating factors driving SSY investment are wealth creation for future of girl child, risk-free guaranteed return, and tax benefits. Based on the qualitative in-depth interviews, we found that the respondents expect a higher rate of interest on their SSY investment. They felt that the maximum limit for the investment should be removed, and there should be provision for premature withdrawal for urgent needs of girl child. Some felt that there should be equitable contribution in the scheme from the side of the government.

“I’m saying let’s make it 84 percent turnout in two years, and then see what happens!” …“Oh, yes! Vote! Dress yourself up, and vote! Even if you only go into the voting booth and pray. Do that!” Bernice Johnson Reagon and Toni Morrison on the 2000 Presidential election in June Jordan’s essay, “The Invisible People: An Unsolicited Report on Black Rage” (2001) On September 17, 2003, Citizenship Day, the United States was to adopt a new version of its Oath of Allegiance. The updated version would modernize the oath by removing cumbersome words like “abjure” and dropping anachronistic references like “potentate.” Thus the oral recitation marking the entrance into citizenship would become more meaningful—and more manageable—for the millions of immigrants eligible for naturalization. The revised version, however, was quickly canned after conservative organizations, senators, and other loud political leaders decried what they saw as an attack on a timeless document and a weakening of the military obligation foundational to entrance into the American citizenry. The Heritage Foundation, one such organization opposing the perceived attack on citizenship, issued an executive statement decrying “the Department of Homeland Security's misguided attempts to make U.S. citizenship more ‘user-friendly’ for those who want the benefits of our country, but don't care to accept the responsibility” (n.pag.). Indeed, the thwarted attempt to make citizenship procedures more welcoming arose at a curious time. Though the proposed changes arose from a long, rather mundane administrative initiative to reconsider various procedural issues, the debate over the Oath of Allegiance politicized the issue within the context of the war on terror and the constriction of entrances into the national turf. The Bush administration responded to events referred to as 9/11 with vigorous efforts to shore up national borders within a language of terrorism, evildoers, and the dire need for domestic security. The infamous Immigration and Naturalization Services (INS) became the consumerist, welcome-sounding Bureau of Citizenship and Immigration Services when it was placed it under the newly formed Department of Homeland Security. The consolidation of citizenship services and disparate border policing programs further bolsters the longstanding scrutiny of immigrants—especially those considered not-white—for their ideological commitment and adherence to current national ideals. Naturalization requires a uniform recitation of unhesitant adherence to official doctrines—and a stated commitment to fight and die for those ideals. War, it seems, and its necessary division of friends and foes (“evildoers”), occupies the dead center of official ceremonies of citizenship. Naturalization procedures demonstrate how the figure of the immigrant undergoes rigorous scrutiny and thus defines the bounds of American citizenship. However, as immigration scholars like Bonnie Honig, Mai Ngai, Linda Bosniak, and Judith Shklar have shown, the specter of the immigrant also serves as an exculpatory device for preexisting inequities by obscuring internal division. While immigrants perform allegiance publicly to obtain citizenship status, birth-right citizens are presumed to have been born with a natural allegiance that precludes multiple allegiances to ideologies, projects, or potentates outside national borders. Ideas about the necessity of pairing exclusive ideological commitment with citizenship are as old as the American nation, notwithstanding the tremendous volume of announcements of a new world order in the wake of 9/11. In all incarnations of the citizenship oath, full membership in the nation-state via naturalization requires a simultaneous oath of allegiance and renunciation. Entrance into the nation-state requires exit—from ideological turf more than geographic turf—from the newly naturalized citizen’s former home country. Though scholars of diasporic and cosmopolitan identities like Aihwa Ong, Phengh Cheah, Bruce Robbins, and Brent Edwards have questioned the viability of the nation-state in postmodernity, official American articulations of citizenship adhere to a longstanding phenomenon whereby inclusion within the polity requires a simultaneous exclusion or renunciation. Or, in the realm of rhetoric, any articulation of a “we” requires a simultaneous citation of a “not-we.” At the heart of citizenship is a cleavage: a coming together made possible by a splitting apart. It is not mere historical curiosity that the notorious utterance of “We” in the Action of the Second Continental Congress popularly known as the Declaration of Independence is forged in direct opposition to a “He” (King George III)—repeated no less than nineteen times in the short document. In contrast, “we” appears only eleven times. What the Declaration shows, and what the Oath of Allegiance insists, is that the constitution of a bounded polity in America emphasizes external difference in order to create the semblance of an internally homogeneous “we.” Thus arises the potency of national documents that announce equality amidst a decidedly unequal social order. These documents provide the ring of broad inclusion for what Rogers M. Smith has described as “civic myths”: ideals of full equality that politicians cite enthusiastically without worrying about their veracity in the everyday lives of the citizenry. Yet American archives and literary histories teem with protest writing that makes visible the internal divisions of American publics. In these literatures arises a figure that threatens the fragile story of a finished “we” based on uniform allegiance: the partial citizen speaking. The partial citizen speaking—from experience, on behalf of others—and addressing the real divisions within a national audience is situated at a strategic site at which to simultaneously claim and critique the inclusive pronouncements of the American Republic in order to make them real. The best example is Frederick Douglass who, having been invited to celebrate the nation in 1848, capitalized on his tenuous claim to citizenship status and delivered the speech “What to the Slave Is the Fourth of July?” In the speech, Douglass excoriates his audience in Rochester, New York on behalf of the slaves absent from Corinthian Hall because they are toiling on Southern plantations. To his “fellow-citizens” Douglass cries, “This Fourth of July is yours not mine. You may rejoice, I must mourn” (116). In contradistinction to leaders’ duplicitous uses of civic myths eschewed by Smith, protesters like Douglass use their partial citizenship to gain a toehold on the viable, but unfinished project of full democracy for all. By claiming the essential American-ness of their projects, protesters like Douglass position their present projects as the fulfillment of previous national promises. In her study of foreigners’ critiques of America, Bonnie Honig shows how “[Foreigners] make room for themselves by staging nonexistent rights, and by way of such stagings, sometimes, new rights, powers, and visions come into being” (101). In the wake of 9/11, we must be interested in the rhetorical means of similar stagings by those already inside presumed national borders who have been denied full access to, or enjoyment of civic, economic, and/or social rights. These partial citizens speaking and writing stage heretofore nonexistent rights by claiming preexisting civic myths by, for, and on behalf of voices that were never meant to speak such civic myths as truths. Sometime after 9/11, President George W. Bush took the virtually unprecedented step of labeling U.S. citizens like Yasir Hamdi and José Padilla “enemy combatants” in order to circumvent the guaranteed legal rights to counsel and trial afforded to all U.S. citizens. The arbitrary nullification of Hamdi’s and Padilla’s citizenship rights was not entirely new given that protest has often been seen as forfeiture of citizenship. In addition to the obvious example of the allegiance-renunciation pairing in the citizenship oath, we can turn to Emma Goldman’s deportation to Russia in 1919, or to the odd favor with which the exit plans of Garveyites and their predecessors have been received. Or, squarely within American borders, Henry David Thoreau’s blueprint of civil disobedience pairs protest with the withdrawal from collectivity (his refusal to pay poll taxes in protest of the Mexican War), a move which bolsters the notion that dissent necessitates a retraction from participation in the public sphere. However, there is another option: collectivity in the face of division. Protesters like Douglass occupy the outposts of real publics that can deliver the ineffable social equality of the modern democratic state. Here, those whose very citizenship is in question are the ones to sift through the promises of the nation-state and to hold them against the evidence of experience—their own and that of others for whom they speak. Participation in the state is more than adherence and renunciation. If Toni Morrison would just as soon have us enter a polling station to pray as to vote; so, too, protesters like Douglass demand hope amidst despairing situations of inequality—often state-sponsored. Their projects are never to simply unveil inconsistency between state promises and the experiences of subsets of its citizenry. Squarely within the circuitous myths that enshroud the state’s turf, these protesters stake claims to the very national myths that threaten their existence. Works Cited Bosniak, Linda. “Citizenship.” The Oxford Handbook of Legal Studies. Eds. Peter Can & MarkTushnet. New York: Oxford UP, 2003. 183-201. Cheah, Phengh, and Bruce Robbins, eds. Cosmopolitics: Thinking and Feeling Beyond the Nation. Minneapolis: U of Minnesota P, 1998. Douglass, Frederick. “What to the Slave Is the Fourth of July?” 1848. Oxford Frederick Douglass Reader. Ed. William L. Andrews. New York: Oxford UP, 1996. 108-30. Edwards, Brent Hayes. The Practice of Diaspora: Literature, Translation, and the Rise of Black Internationalism. Cambridge, MA: Harvard UP, 2003. Govindarajan, Shweta. “Criticism Puts Citizenship Oath Revision on Hold; Conservatives Pan Immigration Officials’ Modernization of the Long-Used Pledge.” Los Angeles Times 19 Sep. 2003, sect. 1:13. The Heritage Foundation. First They Attacked the Pledge, Now the Oath. 10 Sep. 2003. <http://www.heritage.org/Research/HomelandDefense/meeseletter.cfm>. Honig, Bonnie. Democracy and the Foreigner. Princeton: Princeton UP, 2001. Jordan, June. “The Invisible People: An Unsolicited Report on Black Rage.” Some of Us Did Not Die: New and Selected Essays of June Jordan. New York: Basic Books, 2001. 16-19. Ngai, Mae. Impossible Subjects: Illegal Aliens and the Making of Modern America. Princeton: Princeton UP, 2003. Ong, Aihwa. Flexible Citizenship: The Cultural Logics of Transnationality. Durham, NC: Duke UP, 1999. Shklar, Judith N. American Citizenship and the Quest for Inclusion. Cambridge, MA: Harvard UP, 1991. Smith, Rogers M. Civic Ideals: Conflicting Visions of Citizenship in U.S. History. New Haven: Yale UP, 1997. Websites Department of Homeland Security: www.dhs.gov/dhspublic/ Citation reference for this article MLA Style Norman, Brian J. "Allegiance and Renunciation at the Border" M/C: A Journal of Media and Culture <http://www.media-culture.org.au/0403/04-allegiance.php>. APA Style Norman, B. (2004, Mar17). Allegiance and Renunciation at the Border. M/C: A Journal of Media and Culture, 7, <http://www.media-culture.org.au/0403/04-allegiance.php>