Pension Risk Management eJournal最新文献

{"title":"Taxing Pensions","authors":"H. Cremer, P. Pestieau","doi":"10.2139/ssrn.2799616","DOIUrl":"https://doi.org/10.2139/ssrn.2799616","url":null,"abstract":"There exists a wide variety of tax treatments of pensions across the world. And the reasons for such a range of regimes are not clear. This note reviews the general principles of pension taxes and analyses the theoretical foundations of why pension incomes ought to be taxed specifically. To do this, one has to distinguish between public and private pensions. The design of public pensions cannot be separated from the one of taxation. Regarding private pensions, the key issue is whether or not pension saving ought to be treated differently from other forms of saving.","PeriodicalId":407792,"journal":{"name":"Pension Risk Management eJournal","volume":"66 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123482083","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Labor Force Transitions at Older Ages: Burnout, Recovery, and Reverse Retirement","authors":"Lindsay Jacobs, Suphanit Piyapromdee","doi":"10.17016/FEDS.2016.053","DOIUrl":"https://doi.org/10.17016/FEDS.2016.053","url":null,"abstract":"Partial and reverse retirement are two key behaviors characterizing labor force dynamics for individuals at older ages, with half working part-time and over a third leaving and later re-entering the labor force. The high rate of exit and re-entry is especially surprising given the declining wage profile at older ages and opportunities for re-entry in the future being uncertain. In this paper we study the effects of wage and health transition processes as well as the role of accrues work-related strain on the labor force participation on older males. We find that a model incorporating a work burnout-recovery process can account for such reverse retirement behavior that cannot be generated by health and wealth shocks alone, suggesting re-entry patterns result in large part from planned behavior. We first present descriptive statistics of the frequency and timing of re-entry and characteristics of those who re-enter using Health and Retirement Study (HRS) panel data. We then develop and estimate a dynamic model of retirement that captures the occurrence and timing of re-entry decisions observed in the data-as well as the transition to part-time work-while incorporating uncertainty in earnings, health, and stress accumulation. The burnout-recovery process allows us to account for about 40 percent of re-entry, and one-quarter of the shifts to part-time work with age. We also consider the lower exit and re-entry rates after 2008, and attribute this to high option values of work in an environment where future re-entry is less certain. Consistent with our burnout-recovery model, we see that respondents are more likely to report high levels of job stress as they continue to work when they would have otherwise stopped working, recovered, and re-entered. This offers us some information about the relative option value of work versus the burnout-recovery process.","PeriodicalId":407792,"journal":{"name":"Pension Risk Management eJournal","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132061744","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"State Pension Plans for Public Employees: A Rough Road Ahead","authors":"James R. Barth, Jitka Hilliard, J. Jahera, Sung-Sik Joo, K. Lee","doi":"10.2139/SSRN.2766997","DOIUrl":"https://doi.org/10.2139/SSRN.2766997","url":null,"abstract":"Many public pension funds face serious funding shortfalls. In fact, more than half of the states currently have public pension funds with funded ratios that are less than 80 percent, a level many prefer. In this paper we examine factors important in explaining the funded ratios of state and local pension funds for public employees. We extend the study of Munnell et al. (2011) by (1) considering additional factors that may affect the funded ratio, (2) using panel data from 2001 to 2013, and (3) using different statistical methods. We demonstrate the importance of using the lagged funded ratio in our regressions to explain the current level of the funded ratio and its impact on the statistical significance of other coefficients.","PeriodicalId":407792,"journal":{"name":"Pension Risk Management eJournal","volume":"136 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-04-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128570295","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The 80 Percent Pension Funding Target, High Assumed Returns, and Generational Inequity","authors":"Robert M. Costrell","doi":"10.2139/ssrn.2761042","DOIUrl":"https://doi.org/10.2139/ssrn.2761042","url":null,"abstract":"Generational inequity in pension funding is highly sensitive to the lax policies of 80-percent funding targets and high assumed returns to investment. I develop a simple, powerful relationship between steady-state (SS) inequity in contributions – the percent of extra contributions to fund prior cohorts – and the SS unfunded ratio. I then show how the SS unfunded ratio is governed by x-percent funding targets and the gap between assumed and true returns. The SS degree of inequity is over 60 percent under an 80 percent funding target and over 50 percent with a one point gap between assumed and true returns.","PeriodicalId":407792,"journal":{"name":"Pension Risk Management eJournal","volume":"29 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123034191","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"香港強制性公積金「對沖」機制應當何去何從? ('Offsets' in Hong Kong's Mandatory Provident Fund – Where to From Here?)","authors":"Lawrence J. Lau","doi":"10.2139/SSRN.2748428","DOIUrl":"https://doi.org/10.2139/SSRN.2748428","url":null,"abstract":"Chinese Abstract: 「對沖」是一個具有爭議性的問題。遣散費、長期服務金和強制性公積金計劃，因為設立在不同的時段，難免有些重叠性。它們都含有退休生活保障的元素。除了退休保障功能之外，遣散費實質上是一種失業保險，而長期服務金則是向在職期間因傷殘（disability）而無法繼續工作的僱員提供的補助。假如能引進失業保險和傷殘保險，再加上強制性公積金的存在，遣散費及長期服務金的原來保護僱員的目的，都將能完全滿足。因此，沒有需要讓遣散費或長期服務金繼續存在。如果這兩項計劃都不再存在的話，「對沖」的問題也就自然完全消失了。English Abstract: The question of “offsetting” is controversial. Because severance pay, long service benefits and the Mandatory Provident Fund (MPF) scheme were all designed and implemented at different times, it is hard for them to each avoid some overlap. They are all elements of retirement protection. Aside from being a form of retirement protection, severance pay is actually a form of unemployment insurance, while long service pay is a form of subsidy for those that might suffer a disability during their working lives and become unable to work. If it is possible to introduce unemployment protection and disability protection, combed with the existence of the MPF, then the aims of severance pay and long service pay will have been fulfilled. As such, severance pay and long service pay become unnecessary. Removing these will also make the question of “offsetting” disappear.","PeriodicalId":407792,"journal":{"name":"Pension Risk Management eJournal","volume":"76 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130286978","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Две пенсии или една? (When Two Pensions are Less than One)","authors":"Lubomir Christoff","doi":"10.2139/SSRN.2740262","DOIUrl":"https://doi.org/10.2139/SSRN.2740262","url":null,"abstract":"Bulgarian Abstract: Съгласно влезлите в сила на 1.01.2016 г. изменения и допълнения на Кодекса за социалното осигуряване (КСО) родените след 1959 г. могат да избират да се осигуряват в универсални пенсионни фондове (УПФ) или не. При осигуряване в УПФ те получават право на две пожизнени пенсии – от УПФ и намалена от държавното обществено осигуряване (ДОО), а при отказ от осигуряване в УПФ – право на една пенсия от ДОО в пълнен размер. Конструираме “уравнението на безразличие”, за да отговорим на въпроса “При какви условия две пенсии са равни на една?”. Пресмятаме пенсиите на мъж и жена при сценарий, в който параметрите на пенсионната система остават постоянни в течение на 40 години.Установяваме, че:1. За да се постигне равенство на две пенсии на една, доходността на осигурените в УПФ трябва да изпреварва темпа на нарастване на средния осигурителен доход за страната и2. През периода 2002-2015 г. действителната доходност, получена от осигурените в УПФ, изостава значително от темпа на нарастване на средния осигурителен доход за страната за същия период. 3. Продължаването на тази тенденция означава, че очакваният размер на пенсия от УПФ няма да компенсира намалението на пенсията от ДОО и сумата от две пенсии по необходимост ще е по-малка от пълния размер на пенсията от ДОО.English Abstract: The dominant pension product on the Bulgarian market is the UPF (universal pension funds). As of end-2015 privately owned and operated UPFs manage the equivalent of €3.9 bln. in 3.5 mln. accounts (the total population of Bulgaria is 7.2 mln.) The reason for UPFs “popularity” is the mandatory participation requirement in those funds for employees born after 1959, introduced in 2002. Since August 2015, however, participants can opt out of the UPF. Those who choose to opt out will have the right to a full pension from the public pay-as-you-go pension scheme. Those who remain in the UPF will receive two pensions, one from the public scheme and another form the UPF. There is a catch, however. The public scheme pension for UPF participants will be reduced due to the fact that they invest part of their pension insurance contributions into an UPF. Thus, to make a rational decision whether to opt out of the UPF or not, pension savers need to estimate whether their UPF pension will offset the reduction of their public pension or not. In this paper I derive the necessary and sufficient conditions for the private pension from an UPF to fully offset the reduction of the public pension and thus make the sum of two pensions equal to one pension from the public scheme only. The results are as follows: 1. The necessary and sufficient condition for the equality of two pensions to one is that the return on savings in the UPF exceeds the growth of the average insurable income over the entire working career of the insured.2. Historically, the opposite has been the case. The annual average real return after fees of the insured in UPFs was 0.53 % between 2002 and 2015, while the average ","PeriodicalId":407792,"journal":{"name":"Pension Risk Management eJournal","volume":"102 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133556407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"We Need a National Narrative: Building a Consensus Around Retirement Income","authors":"D. Blake","doi":"10.2139/ssrn.3618654","DOIUrl":"https://doi.org/10.2139/ssrn.3618654","url":null,"abstract":"The primary purpose of a pension scheme is to provide life-long retirement income security for however long the scheme member lives. This Report will examine retirement income in private-sector pension schemes, principally workplace schemes set up by employers for their employees. The Government’s ‘freedom and choice’ agenda introduced in the Budget on 19 March 2014 is intended to apply to both DC and funded DB schemes, but not to unfunded DB schemes which most public-sector workers have.","PeriodicalId":407792,"journal":{"name":"Pension Risk Management eJournal","volume":"600 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132445626","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Independent Review of Retirement Income: Consultation","authors":"E. Cannon, D. Blake","doi":"10.2139/SSRN.2753689","DOIUrl":"https://doi.org/10.2139/SSRN.2753689","url":null,"abstract":"On 29 May 2014, Rachel Reeves MP, the Shadow Work and Pensions Secretary, launched an Independent Review of Retirement Income to look at how to boost defined contribution (DC) savers’ retirement income. This review is led by Professor David Blake, Director of the Pensions Institute, with Professor Debbie Harrison of the Pensions Institute as a senior consultant.","PeriodicalId":407792,"journal":{"name":"Pension Risk Management eJournal","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122463108","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Efficacy of Publicly-Available Retirement Planning Tools","authors":"Taft Dorman, Barry S. Mulholland, Qianwen Bi, Harold R. Evensky","doi":"10.2139/ssrn.2732927","DOIUrl":"https://doi.org/10.2139/ssrn.2732927","url":null,"abstract":"Publicly-available retirement planning tools are publicized to aid households in their retirement planning efforts, but households are likely overestimating tool effectiveness. The authors conclude that the advice provided from a majority of these tools is extremely misleading to households, and propose a more systematic approach to tool development by improved choice of input variables. Analyzing professional advisor opinion and theory, critical input variables are identified and recommended. A case scenario is developed incorporating these critical variables and used to test the efficacy of 36 publicly-available retirement planning tools.","PeriodicalId":407792,"journal":{"name":"Pension Risk Management eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-02-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130717388","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Is Someone Front-Running You Around News Releases?","authors":"Irene E. Aldridge","doi":"10.2139/ssrn.2727366","DOIUrl":"https://doi.org/10.2139/ssrn.2727366","url":null,"abstract":"This study presents evidence that much of the trading on macro-economic news occurs prior to the scheduled news announcement times. Examining the trading patterns ahead of the ISM Manufacturing Index and Construction Spending announcement, we find that the trading on the not-yet-publicly released embargoed news consistently takes place as long as 30 minutes ahead of the news announcement times. As much as three quarters of the pre-announcement price move appears to be driven by aggressive HFTs.","PeriodicalId":407792,"journal":{"name":"Pension Risk Management eJournal","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116593411","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}