PSN: Pensions & Retirement (Topic)最新文献

{"title":"Retirement Security: Improved Guidance Could Help Account Owners Understand the Risks of Investing in Unconventional Assets","authors":"Charles A. Jeszeck, Christopher Falcone, D. Lehrer, E. Gruenwald, Jay McTigue, Jessica Moscovitch, John P. McMurray, MaryLynn Sergent, Tom Moscovitch","doi":"10.2139/SSRN.2900913","DOIUrl":"https://doi.org/10.2139/SSRN.2900913","url":null,"abstract":"Federal data collection efforts to date have captured little information on retirement accounts holding unconventional assets — such as real estate, precious metals, private equity, and virtual currency — making the prevalence of such accounts unknown. In tax year 2015, the Internal Revenue Service (IRS) began requiring that custodians or trustees of individual retirement accounts (IRA) — including banks or other institutions approved to hold account assets — report selected information on unconventional assets in their clients' accounts to IRS. As of November 2016, IRS plans to begin compiling the new IRA asset data in 2017, but has not specified when the new IRA asset data will be available for analysis. Seventeen of the 26 custodians, who GAO identified as allowing retirement accounts with unconventional assets and who participated in GAO's data collection effort, reported having nearly half a million of these accounts in their custody at the end of calendar year 2015. IRAs made up the vast majority of accounts and assets reported.An IRA owner's decision to invest in unconventional assets can expand their role and responsibilities substantially. GAO's review of industry documents found that individuals wanting to invest in unconventional assets through their IRA generally agree to be responsible for overseeing the selection, management, and monitoring of account investments and shoulder the consequences of most decisions affecting their accounts. For example, owners of such accounts assume a fiduciary role, which makes them assume greater responsibility for overseeing the selection, management, and monitoring of account investments, and shoulder the consequences of most decisions affecting their accounts.Current IRS guidance provides little information to help IRA owners understand their expanded responsibilities and potential challenges associated with investing in unconventional assets. Targeted IRS guidance for these IRA owners may help them navigate the potential compliance challenges associated with certain types of unconventional assets. For example, GAO found that some IRA owners can experience challenges in the following areas:• Monitoring for ongoing federal tax liability: IRA owners are not always aware of the need to monitor the gross income from certain unconventional assets in their accounts for ongoing federal tax liability. For example, IRA owners who invest in active businesses or debt-financed properties need to monitor their accounts for ongoing tax liability that must be paid from the IRA. Failure to do so can result in underpayment penalties.• Obtaining annual fair market valuations for nonpublicly traded assets: IRA owners investing in hard-to-value unconventional assets can face challenges meeting their responsibilities to provide updated fair market value information to their custodian to meet IRS's annual reporting requirement. Failure to provide an updated fair market value in a timely manner can result in a custodian ","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-12-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131014218","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 Effects of Non-Contributory Pensions on Material and Subjective Well Being","authors":"Rosangela Bando, S. Galiani, P. Gertler","doi":"10.2139/ssrn.2881558","DOIUrl":"https://doi.org/10.2139/ssrn.2881558","url":null,"abstract":"Public expenditures on non-contributory pensions are equivalent to at least 1 percent of GDP in several countries in Latin America and is expected to increase. We explore the effect of non-contributory pensions on the well-being of the beneficiary population by studying the Pension 65 program in Peru, which uses a poverty eligibility threshold. We find that the program reduced the average score of beneficiaries on the Geriatric Depression Scale by nine percent and reduced the proportion of older adults doing paid work by four percentage points. Moreover, households with a beneficiary increased their level of consumption by 40 percent. All these effects are consistent with the findings of Galiani, Gertler and Bando (2016) in their study on a non-contributory pension scheme in Mexico. Thus, we conclude that the effects of non-contributory pensions on well-being in rural Mexico can be largely generalized to Peru.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123917267","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":"Converting Retirement Benefit into a Life Care Annuity with Graded Benefits: How Costly Would It Actually Be?","authors":"Javier Pla-Porcel, M. Ventura-Marco, Carlos Vidal-Meliá","doi":"10.2139/ssrn.2801651","DOIUrl":"https://doi.org/10.2139/ssrn.2801651","url":null,"abstract":"This paper deals with life care annuities, i.e. bundled products comprising a life annuity and long-term care insurance. It aims to assess the cost of converting retirement benefit into a life care annuity with graded benefits using a pre-existing public pay-as-you-go pension scheme. With this objective in mind, we present an actuarial method based on array calculus for valuing this type of life care annuity. The health dynamics of the annuitant rely on a reversible illness-death multistate framework. The paper contains a numerical example in which mortality and disability assumptions are based on data from the USA and Australia, although this should be viewed simply as an illustration. In addition, in order to check the coherence of these data, we compute life expectancy for both healthy and dependent persons, and then for dependent persons in each of the states of dependence. The effect of ruling out the recovery assumption on the annuity's cost is also assessed. The analysis provides valuable insights into how much it would cost to introduce these annuities and enables us to make some policy recommendations to help ensure that this combined pension scheme has a good actuarial design. If the data used were the real data, it would be no exaggeration to say that embedding long-term care coverage into the retirement system in the USA might not be very costly, whereas for Australia the opposite would be true.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"206 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-11-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115737098","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":"Adapting Social Security to 21st Century Indian Economy: A Case for Universalisation","authors":"S. Bhattacharjee","doi":"10.2139/ssrn.3060301","DOIUrl":"https://doi.org/10.2139/ssrn.3060301","url":null,"abstract":"Proliferation of social security has been one of the integral features of the modern industrialised world. In India too, social security has not only been enshrined as a constitutional mandate, but has also been embodied in a wide variety of legislation. Yet, multiplicity of legislation has created errors of harmonisation and engendered a regime riddled with variance in legal standards and rights of workers. Along with these inconsistencies and gaps, the centrality of the status of employment in extant regimes has excluded a large number of workers who fall through the crack. Such exclusion has been exacerbated by the occupation-centricity of these schemes that is ill-suited to the ongoing transformation in the labour economy and demographic changes. In view of these shortcomings, a shift to universal citizenship-based social security schemes is advocated. Delinking social security from occupation and predicating it on citizenship would extend these schemes to informal atypical workers and persons out of work and thereby make the constitutional right of social security a substantive entitlement for our citizenry.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126323120","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":"Cohort Changes in Social Security Benefits and Pension Wealth","authors":"Chichun Fang, Charles C. Brown, D. Weir","doi":"10.2139/ssrn.2898212","DOIUrl":"https://doi.org/10.2139/ssrn.2898212","url":null,"abstract":"We utilize three sets of data resources—the Health and Retirement Study (HRS), linked Social Security earnings records of the HRS respondents, and publicly available pension plan descriptions—to study pension wealth accumulations among the recent HRS cohorts. We document the trends in pension wealth over time and across cohorts during a period in which the economic consequences of the Great Recession were significant. However, given that pension wealth of many respondents were imputed in earlier waves due to the lack of information about pension plan provisions, there is the question of how much of the changes in pension wealth should be attributed to errors in imputation. The recently available pension plan descriptions from private employers’ Form 5500 filings and public employers’ websites, which improve the respondent-plan linkage over what was available in previous waves, allow us to examine this exact question. In particular, we show that the newly available sets of information not only reduce the need for imputation, but also enable us to identify the plans not reported by HRS respondents in the survey and the retirement wealth associated with these plans. Finally, we also test the validity of the earnings projection methods used to produce Social Security and pension wealth estimates in the HRS, and we end our report with a discussion over the pros and cons among the projection methods.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132692851","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":"Independence and the Governance of Superannuation Funds","authors":"M. Donald, Suzanne M. Le Mire","doi":"10.2139/SSRN.2747780","DOIUrl":"https://doi.org/10.2139/SSRN.2747780","url":null,"abstract":"The failure of the Federal government’s Superannuation Legislation Amendment (Trustee Governance) Bill 2015 to pass through the Senate in November 2015 means that the political spotlight has for the time being shifted away from the issue of independence on superannuation fund boards. This creates a valuable opportunity for further reflection on precisely what board member independence might offer the superannuation system.This paper aims to contribute to that deliberation. It introduces a variety of seminal concepts drawn from independence theory, reviews the growing literature on pension fund governance and maps the ways in which the regulatory regime currently aims to promote cognitive independence on the part of superannuation fund board members. It uses that as a foundation for deriving a more sophisticated, nuanced and ultimately more compelling rationale for the imposition of structural independence on superannuation fund boards. That rationale encompasses both a desire for improved decision-making by superannuation fund boards and a recognition of the valuable role that structural independence can play in inspiring confidence in the system. This confidence, in turn, can contribute to the legitimacy of a system in which participation, as a result of the Superannuation Guarantee, is almost compulsory. A second, complementary paper will evaluate the practical issues associated with using structural regulation specifically to achieve cognitive independence on superannuation fund boards.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"58 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116012991","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":"Government Transfers, Work and Social Norms: Evidence from the Russian Old-Age Pension, 1990-2011","authors":"L. Grogan, F. Summerfield","doi":"10.2139/ssrn.2605574","DOIUrl":"https://doi.org/10.2139/ssrn.2605574","url":null,"abstract":"Social norms about work evolved substantially in Russia following the collapse of the Soviet Union and the end of full employment. However, amongst the subpopulation of older workers, whose views were formed under labour hoarding, ideas about working life remained similar. The resulting environment facilitates a natural experiment. The causal impact of attaining pension age on labour market outcomes is here identified using the World Values Surveys and Russian Longitudinal Monitoring Surveys spanning 1990-2011, and regression discontinuity estimators with individual fixed effects. Older individuals now re- tire earlier with more income and leisure time, but are not necessarily happier.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-11-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126441780","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":"Final Report on Connecticut's State Employees Retirement System and Teachers' Retirement System","authors":"J. Aubry, A. Munnell","doi":"10.2139/SSRN.2692038","DOIUrl":"https://doi.org/10.2139/SSRN.2692038","url":null,"abstract":"The report’s key findings are:• Connecticut’s pension systems for state employees and teachers face large unfunded liabilities, despite recent efforts by the State to fund.• A significant source of the problem is the \"legacy debt\" built up before the State began pre-funding its pensions in the 1970s.• Since pre-funding began, inadequate contributions from the State and low investment returns have added to the problem.• One way to address the problem is through a two-step approach:1. separately finance the legacy debt over multiple generations; and2. fund ongoing benefits using a level-dollar amortization method over a reasonable rolling period; and reduce the long-term assumed return.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"61 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126291240","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 State of Public Pension Funding: Are Government Employee Plans Back on Track?","authors":"Andrew G. Biggs","doi":"10.2139/SSRN.3024261","DOIUrl":"https://doi.org/10.2139/SSRN.3024261","url":null,"abstract":"The public-sector pension industry is claiming a comeback from losses suffered during the Great Recession. But this recovery is greatly exaggerated: even years past the end of the recession, most pension sponsors are unable to make their full annual contributions, and pensions are taking as much investment risk as ever. The first step to effective pension reforms is an honest, accurate view of the costs and risks that public plans impose on government budgets and taxpayers.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"137 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116392409","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 Role of Wealth in the Start-Up Decision of New Self-Employed: Evidence from a Pension Policy Reform","authors":"Yue Li, M. Mastrogiacomo, S. Hochguertel, Hans G. Bloemen","doi":"10.2139/ssrn.2651104","DOIUrl":"https://doi.org/10.2139/ssrn.2651104","url":null,"abstract":"We study whether wealth affects transitions from wage-employment to self-employment using a large sample from administrative panel data for the Netherlands. To isolate the causal effect of wealth, we rely on a reform of the pension system that abolished preferential tax treatment of early retirement for cohorts born after January 1, 1950. This exogenous reduction in pension wealth has a significant negative effect on the transition into self-employment. We compute that the average reduction of net future pension wealth by 16,000 euros in our sample, triggered by the reform, reduces the transition rate into self-employment by 38%.","PeriodicalId":430314,"journal":{"name":"PSN: Pensions & Retirement (Topic)","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131728558","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}