Pension design Archives - Page 63 of 64 - Pension Policy International

04FebFebruary 4, 2017

What Enron Means for the Management and Control of the Modern Business Corporation: Some Initial Reflections

The Enron case challenges some of the core beliefs and practices that have underpinned various positions in the debates about corporate law and governance, including mergers and acquisitions, since the 1980s. In particular, Enron raises at least the following problems for the received model of corporate governance: First, it provides another set of reasons to question the strength of the efficient market hypothesis, here, the company's dizzyingly high stock price despite transparently irrational reliance on its auditors' compromised certification. Second, it...

February 4, 2017

Articles, Investing, Pension designCorporate Governance, Management, Social Protection

04FebFebruary 4, 2017

Longevity Risk Management for Life and Variable Annuities: Effectiveness of Static Hedging Using Longevity Bonds and Derivatives

By Michael Sherris & Andrew Ngai For many years the longevity risk of individuals has been underestimated as survival probabilities improved across the developed world. The uncertainty and volatility of future longevity has posed significant risk issues for both individuals and product providers of annuities and pensions. This paper investigates the effectiveness of static hedging strategies for longevity risk management using longevity bonds and derivatives (q-forwards) for the retail products: life annuity, deferred life annuity, indexed life annuity and variable...

February 4, 2017

Articles, Investing, Pension designInvestment

04FebFebruary 4, 2017

Technical Review Panel for the Pension Insurance Modeling System (PIMS)

By Olivia S. Mitchell, Christopher Geczy, Robert Novy-Marx, Raimond Maurer, Donald E. Fuerst, Christopher Bone, Donald J. Segal, Martin G. Clarke, Frank J. Fabozzi, Deborah Lucas & David F. Babbel In April of 2013, the Pension Research Council of the Wharton School at the University of Pennsylvania convened a Technical Review Panel, comprising ten experts whose task it was to review the Pension Benefit Guaranty Corporation’s (PBGC) Pension Insurance Modeling System (PIMS), including inputs, outputs, and model assumptions. The review...

February 4, 2017

Articles, Corporate Governance, Pension designInvesting, Labor Market

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

Workplace-Linked Pensions for an Aging Demographic

By Olivia S. Mitchell & John Piggott Pensions and population aging intersect in two ways. First, demographic change threatens the sustainability of traditional pay-as-you-go social security pensions, leaving workplace-linked pensions with a greater role in retirement provision. Second, as the Baby Boom generation enters retirement, new challenges arise around its retirement support. This chapter reviews some of the implications of population aging for workplace pensions in this new environment, outlines market considerations important for workplace-related pension design for the future,...

February 4, 2017

Aging, Articles, Labor Market, Pension designAging (and old age), Labor Market, Occupational Pensions, Social Protection, Voluntary pensions

04FebFebruary 4, 2017

Optimal Social Security Claiming Behavior under Lump Sum Incentives: Theory and Evidence

By Raimond Maurer, Olivia S. Mitchell, Ralph Rogalla & Tatjana Schimetschek People who delay claiming Social Security receive higher lifelong benefits upon retirement. We survey individuals on their willingness to delay claiming later, if they could receive a lump sum in lieu of a higher annuity payment. Using a moment-matching approach, we calibrate a lifecycle model tracking observed claiming patterns under current rules and predict optimal claiming outcomes under the lump sum approach. Our model correctly predicts that early claimers...

February 4, 2017

Articles, Pension design, RegulationBehavior, Labor Market, Social Protection

04FebFebruary 4, 2017

Uber Retirement

By Paul Secunda The rise of the gig economy with its part-time, itinerant, independent workers, in conjunction with the employee-centric nature of occupational retirement benefits under ERISA, has led to gig employees largely lacking meaningful retirement benefits. Current proposals to provide portable benefits to gig workers as independent workers or independent contractors are unacceptable because such benefits would not be secured by the fiduciary consumer protections of ERISA. However, two developments with regard to the retirement security of the gig workers...

February 4, 2017

Articles, Labor Market, Pension designRegulation

04FebFebruary 4, 2017

Inside Debt

By Alex Edmans & Qi Liu Existing theories advocate the exclusive use of equity-like instruments in executive compensation. However, recent empirical studies document the prevalence of debt-like instruments such as pensions. This paper justifies the use of debt as efficient compensation. Inside debt is a superior solution to the agency costs of debt than the solvency-contingent bonuses and salaries proposed by prior literature, since its payoff depends not only on the incidence of bankruptcy but also firm value in bankruptcy....

February 4, 2017

Articles, Investing, Pension designManagement, private pension management, public pension management)

04FebFebruary 4, 2017

Can Low Income Countries Afford Basic Social Protection? First Results of a Modelling Exercise

By Karuna Pal, Christina Behrendt, Florian Leger, Michael Cichon & Krysztof Hagemejer This report presents the methodology and the results of a modelling exercise that demonstrates that basic social protection benefits are not out of reach for low-income countries in Sub-Saharan Africa, even though some international assistance would be necessary for a transitory period. The Social Protection Sector of the International Labour Organization (ILO) has estimated the cost of basic social protection benefits education, health, pensions) for a selected number...

February 4, 2017

Articles, Pension design, System SustainabilityRegulation, Social Pensions, Sustainability

04FebFebruary 4, 2017

The Norway Model

By David Chambers, Elroy Dimson & Antti Ilmanen The Norwegian Government Pension Fund Global was recently ranked the largest fund on the planet. It is also highly rated for its professional, low-cost, transparent, and socially responsible approach to asset management. Investment professionals increasingly refer to Norway as a model for managing financial assets. We present and evaluate the strategies followed by the Fund, review long-term performance, and describe how it responded to the financial crisis. We conclude with some lessons...

February 4, 2017

Articles, Pension design, RegulationInvestment, Management, private pension management, public pension management)

February 2017