Adequacy Archives - Page 13 of 14 - Pension Policy International

04FebFebruary 4, 2017

Can International Capital Standards Strengthen Banks in Emerging Markets?

By Liliana Rojas-Suarez Who should determine banks’ capital standards: authorities or markets? What is the right definition of core capital: equity only or equity plus subordinated debt? Can the assessment of banks' individual credit risks by external rating agencies be of equal or better quality than the assessments derived from banks' own internal rating systems? These are some of the key financial regulatory issues currently being discussed by analysts in industrial countries, especially in the context of the proposed modification...

February 4, 2017

Adequacy, Articles, InvestingFunding

04FebFebruary 4, 2017

Security of Retirement Benefits in Canada: You Bet Your Life?

By Ronald B. Davis This paper provides a careful review and analysis of employment-based pensions and other post-retirement benefits that may be available to Canadian workers when they retire, with particular emphasis on the extent to which such benefits are vulnerable to unilateral employer alteration or cancellation, and to the risks which arise in the event of the employer's insolvency. Taking stock of key differences between the rights of unionized employees and non-unionized ones, the author argues that the legal...

February 4, 2017

Adequacy, Articles, Labor Market, RegulationInvesting, Regulation

04FebFebruary 4, 2017

How Should the Adequacy of Pension Coverage Be Balanced Against Financial Sustainability?

By Krzysztof Hagemejer & John Woodall In recent decades many countries have “reformed” their contributory pension schemes, generally strengthening the links between benefit entitlements and the contributions paid over members’ working lifetimes, but primarily seeking to (re)balance them financially, in the face of strains arising from unfavourable labour market or demographic conditions. The result has been reduced benefit entitlements and levels of coverage, however assessed. The impact has been felt, particularly, by those with shorter, broken careers (due for example...

February 4, 2017

Adequacy, Articles, System SustainabilityCoverage, Investing, Sustainability

04FebFebruary 4, 2017

Assessing the Distortions of Mandatory Pensions on Labor Supply Decisions and Human Capital Accumulation: How to Bridge the Gap between Economic Theory and Policy Analysis

By Mukul Rutkowski, David A. Robalino & Andras Bodor Mandatory pension systems play a major role in individual savings and labor supply decisions. In particular, it is well known that defined benefit pension schemes, which are not actuarially fair, can create incentives for early retirement and therefore reduce labor supply and the stock of human capital in a given country. This is an important policy issue in middle-income countries, with still low participation rates in the labor force, where the...

February 4, 2017

Adequacy, Articles, Labor MarketBehavior, Regulation, Sustainability

04FebFebruary 4, 2017

Retirement Security: Better Information on Income Replacement Rates Needed to Help Workers Plan for Retirement

By Charles Jeszeck, Kimberley Granger, Jennifer Gregory, Melinda Bowman & Amrita Sen What GAO Found: Household spending patterns varied by age, with mid-career households (those aged 45-49) spending more than older households. For example, according to 2013 survey data from the Bureau of Labor Statistics (BLS), mid-career households spent an estimated average of around $58,500, while young retiree households (those aged 65-69) spent about 20 percent less. While the share of spending was consistent for some categories, other categories had...

February 4, 2017

Adequacy, Articles, Labor MarketFinancial Education, Labor Market, Replacement Rate

04FebFebruary 4, 2017

Are ‘Voluntary’ Self-Employed Better Prepared for Retirement than ‘Forced’ Self-Employed? The Case of the Netherlands and Germany

By Douglas Hershey, Hendrik van Dalen, Weiteke Conen & Kene Henkens When it comes to financial preparation for retirement, self-employed workers in many European countries face unique challenges not encountered by traditional wage earners. This is particularly true for self-employed workers who do not supervise subordinate personnel. This is the case because many self-employed individuals in nations such as the Netherlands and Germany do not have large-scale access to employer-sponsored pensions, which are a mainstay of pension support for most...

February 4, 2017

Adequacy, Articles, Labor Market, Pension designManagement, Sustainability

04FebFebruary 4, 2017

Adequacy, Fairness and Sustainability of Pay-as-You-Go-Pension-Systems: Defined Benefit Versus Defined Contribution

By Jennifer Alonso-García, María el Carmen Boado-Penas & Pierre Devolder There are three main challenges facing public pension systems. First, pension systems need to provide an adequate income for pensioners in the retirement phase. Second, participants wish a fair level of benefits in relation to the contributions paid. Last but no least, the pension system would need to be financially sustainable in the long run. In this paper, we analyse defined benefit versus defined contribution schemes in terms of adequacy,...

February 4, 2017

Adequacy, Articles, System SustainabilityManagement, Regulation

04FebFebruary 4, 2017

Pension Reform in Britain

By Edward Whitehouse This paper examines the evolution of the pension system in Britain. In particular, it focuses on the shift from pay-as-you-go, state-run defined-benefit pensions to individual, private-sector, funded defined-contribution accounts. It looks at three issues in this reform: the financing of the transition from pay-as-you-go to funded provision; the fiscal impact of voluntary switching and adverse selection; and the question of the degree to which personal pension accounts were 'over-sold' to individuals for whom they were not suitable....

February 4, 2017

Adequacy, Articles, RegulationRegulation

04FebFebruary 4, 2017

Adequacy (2) : Pension entitlements of recent retirees

By Edward Whitehouse & Asta Zviniene This note discusses how expected benefit levels can be assessed. The note points out the measurement of current benefit levels that are observable: they do not depend on any assumptions about the future. However, they do depend on past contribution patterns, macroeconomic developments and parameters and rules of the pension system rules that, in many cases, no longer apply today. This briefing discusses the measurement of empirical average pension levels, minimum pensions and the...

February 4, 2017

Adequacy, Aging, ArticlesAging (and old age), Labor Market

04FebFebruary 4, 2017

Adequacy (1) Pension entitlements, replacement rates and pension wealth

By Edward Whitehouse This note briefly sets out a methodology for calculating prospective pension entitlements promised in the future to todays workers. This method can (and has been) applied to a wide range of countries with very different pension systems. The entitlements shown here are prospective. It looks at theoretical values and so illustrates the way the current parameters and rules of pension systems will work for different example individuals. This can be used to assess the adequacy of future...

February 4, 2017

Adequacy, Articles, RegulationLabor Market, Replacement Rate

February 2017