September 2023
08Sep

Policy Forum: Pensions, Retirement Incentives, and the Role of Inflation

By Tammy Schirle This article describes the role of wage and price inflation for the retirement plans and well-being of registered pension plan members. The federal Public Service Pension Plan is used as an example to illustrate how wage and price inflation can be accounted for in pension design. Alternative scenarios illustrate the importance of pension plan provisions for the standard of living afforded retirees as well as incentives to delay retirement and continue working at older ages. Source @SSRN

September 8, 2023
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01Sep

Minimum eligibility age for social pensions and house hold poverty: Evidence from Mexico

By David Escamilla Guerrero, Clemente Avila Parra & Oscar Gálvez Soriano This paper examines the impact of social pensions on old-age poverty. To achieve causal identification, we leverage the reduction in the minimum eligibility age of Mexico's flagship non-means-tested social pension program. We find that the program's expansion significantly reduced extreme poverty, mainly among indigenous seniors and in rural areas. However, it had negligible effects on labor force participation, suggesting that social pensions were not effective in ensuring minimum...

September 1, 2023
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August 2023
18Aug

Labor Mobility and the Problems of Modern Policing

By Jonathan S. Masur, Aurelie Ouss & John Rappaport  We document and discuss the implications of a striking feature of modern American policing: the stasis of police labor forces. Using an original employment dataset assembled through public records requests, we show that, after the first few years on a job, officers rarely change employers, and intermediate officer ranks are filled almost exclusively through promotion rather than lateral hiring. Policing is like a sports league, if you removed trades and free...

August 18, 2023
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July 2023
23Jul

Mortality Regressivity and Pension Design

By Youngsoo Jang, Svetlana Pashchenko & Ponpoje Porapakkarm How should we compare welfare across pension systems in presence of differential mortality? A commonly used standard utilitarian criterion implicitly favors the long-lived over the short-lived. We investigate under what conditions this ranking is reversed. We clearly distinguish between the redistribution along mortality and income dimensions, and thus between mortality and income progressivity. We show that when mortality is independent of income, mortality progressivity can be optimal only when (i) there is...

July 23, 2023
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23Jul

Accounting for Pension and Post-Retirement Benefits in Companies

By Anetha Kumanireng, Reniati Marimpan & Veronika Tombi Layuk After leaving work, retirement is an importan phase in one's life. Companies must prepare for retirement well. One of the elements that must be considered is the accounting for pensions and post-retirement benefits. This article will discuss the importance of this accounting for companies. Source @SSRN

July 23, 2023
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21Jul

Pension Reform, Incentives to Retire and Retirement Behavior: Empirical Evidence from Swedish Microdata

By Lisa Laun & Mårten Palme This paper investigates to what extent the 1998 reform of Sweden’s public old-age pension system contributed to the increase in extensive margin labor supply among older workers seen in the country in recent decades. We use a large data set containing all males and females born in Sweden between 1927 and 1950 and observe their retirement behavior during 1991–2012. The data show that the reform changed the incentives to remain in the labor force...

July 21, 2023
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07Jul

Pensions for all. Proposals for more inclusive pension systems in Latin America.

Edited by David Tuesta y Gautam Bhardwaj One of the pending tasks in Latin America is the development of a pension system that is widely accessible, sufficient and financially sustainable over time. Beyond the different degrees of progress in each of the countries, they all face similar internal and global challenges. In particular, the problems of high informality of institutions and labor markets make the road even more uphill. The recent Covid19 pandemic scenario has highlighted the structural weaknesses of pension...

July 7, 2023
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June 2023
30Jun

‘InDIAs’: Innovative Retirement Security Bonds for India

By Arun Muralidhar A commonly-accepted retirement goal for a healthy pension is for it to sustain the relatively higher standard-of-living of the latter part of one’s working life throughout retirement. A recent innovation implemented by Brazil in January 2023 might provide a solution to the pension challenges faced by India, and, more importantly, satisfy the key goals identified by the Reserve Bank of India in respect of debt management and a stable debt structure as also self- reliance and financial...

June 30, 2023
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30Jun

Linear Risk Sharing in Intergenerational Pension

By Michail Anthropelos, An Chen, Steven Vanduffel & Morten Wilke  We introduce and analyze a novel collective defined contribution plan (CDC) which guarantees upon retirement at least a target benefit as a lump sum. The guarantee is provided by the remaining working generations under a pre-determined linear intergenerational risk sharing (IRS) rule. Through a simulation-based study, we show that the CDC scheme consistently outperforms the comparable individual DC scheme in terms of risk-adjusted performance. An extensive sensitivity analysis indicates that this...

June 30, 2023
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23Jun

A review of gender differences in retirement income

By Jennifer Curtin & Yanshu Huang  A research report prepared for the Commission for Financial Capability’s Review of Retirement Income Policy, July 2019. This review seeks to answer the following questions: How wide is the Gender Pension Gap in New Zealand? What is the coverage of KiwiSaver by gender? How does this compare with international trends? Is the Gender Pension Gap reducing (as gender pay gaps are) over time (drawing on both international and NZ data where available)? What accounts...

June 23, 2023
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