February 2017

04Feb

The Voluntary Contributions Model–Study Regarding The Completion Of The Length Of Service

By Constantin Anghelache & Ana CARP In this article we present the study on “Buying years of service (seniority)” which is a particular case of the voluntary contributions model proposed by the author in a previous work. In the case study presented in this article, we show the groups of people addressed by Law no.186 / 2016 for “buying years of service”, we quantify the results of applying this legislative measure and we estimate the implications on the evolution of...

February 4, 2017
Articles, Pension design, System Sustainability, ,
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04Feb

The Role of Social Security in Overall Retirement Resources: A Distributional Perspective

By Alice Henriques & John Sabelhaus During recent decades, the US employer-sponsored retirement system has undergone a major shift from primarily defined benefit (DB)-type plans to primarily defined contribution (DC)-type plans. Furthermore, in the past decade, participation in employer retirement plans has fallen, particularly for younger and lower-income families. In light of this, there is growing concern that wealth accumulation through employer-provided pension plans is falling short, especially for the bottom half of the income distribution. However, focusing only on...

February 4, 2017
Articles, Pension design, Regulation, , ,
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04Feb

Non-Contributory Pensions Number-Gender Effects on Poverty and Household Decisions

By Miguel Ángel Borrella, Mariano Bosch & Marcello Sartarelli Non-contributory pensions, designed to reduce old-age poverty particularly in countries with low contributory coverage, may induce a variety of household behavioural responses. This paper tests whether they vary with beneficiaries number and gender in Bolivia, one of the countries with the lowest contributory coverage worldwide. Taking advantage of a discontinuity in eligibility at age 60 in the Renta Dignidad pension, we estimate these effects by using a bi-dimensional regression discontinuity design,...

February 4, 2017
Articles, Pension design, Savings, , ,
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04Feb

Lessons for Public Pensions from Utah’s Move to Pension Choice

By Robert L. Clark, Emma Hanson & Olivia S. Mitchell This paper explores what happened when the state of Utah moved away from its traditional defined benefit pension. Instead, it offered new hires a choice between a conventional defined contribution plan, versus a hybrid plan option having both a guaranteed benefit component and a defined contribution plan shifting investment risk to employees. We show that some 60 percent of new hires failed to make any active choice and, as a...

February 4, 2017
Articles, Regulation, ,
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