Articles Archives - Page 125 of 140 - Pension Policy International

17MarMarch 17, 2017

Life-Cycle Consumption, Investment, and Voluntary Retirement with Cointegration between the Stock and Labor Markets

By Min Dai, Shan Huang & Seyoung Park (National University of Singapore) We present an optimal life-cycle consumption, investment, and voluntary retirement model for a borrowing and short sale constrained investor who faces cointegration between the stock and labor markets. With reasonable parameter values, there exists a target wealth-to-income ratio under which the investor does not participate in the stock market at all, whereas above which the investor increases the proportion of financial wealth invested in the stock market as...

March 17, 2017

Articles, Investing, Labor Market, Pension designInvestment, Risk, Voluntary pensions

17MarMarch 17, 2017

Amicus Brief of National Employment Lawyers Association in Advocate Health Care Network v. Stapleton

By Matthew C. Koski, Brian Wolfman (Georgetown University) & Wyatt Gregory Sassman (Charleston School of Law) The Employee Retirement Income Security Act of 1974 (ERISA) governs the conduct of employers that offer pensions and certain other benefits to their employees. In enacting the law, “Congress’s primary concern was with the mismanagement of funds accumulated to finance employee benefits and the failure to pay employees benefits from accumulated funds.” Gobeille v. Liberty Mut. Ins. Co., 136 S. Ct. 936, 946 (2016)...

March 17, 2017

Articles, Labor Market, Pension designBehavior, Labor Market, Social Protection

17MarMarch 17, 2017

Labor Force Participation in New England vs. The United States, 2007–2015: Why Was the Regional Decline More Moderate?

By Mary A. Burke (Federal Reserve Bank of Boston) This paper identifies the main forces that contributed to the decline in labor force participation in New England between 2007 and 2015, as well as the forces that moderated the region’s decline relative to that of the nation. This exercise contributes to an assessment of the outlook for participation in New England moving forward. Similar to previous findings pertaining to the United States as a whole, the single largest factor in...

March 17, 2017

Articles, Labor MarketBehavior, Labor Market

14MarMarch 14, 2017

Personalized Information as a Tool to Improve Pension Savings: Results from a Randomized Control Trial in Chile

By Olga Fuentes; Jeanne Lafortune; Julio Riutort; José Tessada Félix Villatoro We randomly offer to workers in Chile personalized versus generalized information about their pension savings and forecasted pension income. Personalized information increased the probability and amounts of voluntary contributions after one year without crowding-out other forms of savings. Personalization appears to be very important: individuals who overestimated their pension at the time of the intervention saved more. Thus, a person’s inability to understand how the pension system affects them...

March 14, 2017

Articles, Labor Market, SavingsBehavior, efficiency, Financial Education, Savings, Voluntary pensions

13MarMarch 13, 2017

Is There a Positive Incentive Effect from Privatizing Social Security: Evidence from Latin America

By Truman G. Packard (World Bank) There is increasing concern among policymakers that social security reforms that involve a transition to individual retirement savings accounts may exclude certain groups of workers from coverage against the risk of poverty in old age. While most public pay-as-you-go systems pool the risk of interrupted careers and periods of low earnings over the covered population, the reformed systems shift the burden of these risks to the individual. Adequate coverage under a system of individual...

March 13, 2017

Articles, Labor Market, RegulationFunding, Political economy, Social Protection, Sustainability

10MarMarch 10, 2017

Does Financial Regulation Unintentionally Ignore Less Privileged Populations?

By Maya Haran Rosen & Orly Sade (Hebrew University) In 2014, the Israeli insurance and long term savings regulator reached out to the Israeli population to help individuals find inactive retirement plans and withdraw inactive funds. We find that the government's effort did not result in withdrawals of the majority of the accounts, and did not reach all subpopulations equally. Provident fund records indicate that those who took financial action and withdrew funds following the campaigns live in localities in...

March 10, 2017

Articles, Labor Market, RegulationBehavior, Financial Education, Financial Inclusion, Social Protection

08MarMarch 8, 2017

Problems of Reforming the Institute of Early Pensions for Work in Harmful and Hazardous Conditions

By Yury Mikhailovich Gorlin, Nadezhda Galieva, Elena E. Grishina, Marina A. Eliseeva, Vladimir Kartavtsev & Anna Cheremnykh (RANEPA) One of the main lines of the strategy for long-term development of the pension system of the Russian Federation, approved by the Resolution of the Russian Government is the reform of early retirement institute. In this area Russian Government set an additional tariff of insurance premiums for employers who offer hazardous work; a special assessment of the working conditions is being made,...

March 8, 2017

Articles, Labor Market, Pension design, RegulationAging, Labor Market

08MarMarch 8, 2017

Embedded Flaws of the Bulgarian Pension Funds or the Code Against the Insured

The Bulgarian pay-as-you-go publicly managed pension system is complemented by default and voluntary defined contribution pension funds, managed privately. The regulatory regime of the private pension funds is such that turns them into: unsuitable, uncompetitive and ineffective pension products. Privately managed pension funds are unsuitable, because they are not aligned with the investment horizon and the risk tolerance of individual investors. They are uncompetitive since their track record is of delivering below market returns for above market fees and charges....

March 8, 2017

Articles, Pension design, RegulationFunding, Investment

08MarMarch 8, 2017

Using Panel Tax Data to Examine the Transition to Retirement

By Peter J. Brady & Steven Bass (Investment Company Institute); Jessica Holland & Kevin Pierce (Government of the United States of America - Internal Revenue Service) Using panel data from the Internal Revenue Service’s Statistics of Income (SOI) Division, we find that most individuals do not experience a reduction in inflation-adjusted spendable income after claiming Social Security. We also examine the composition of income after claiming and find that both Social Security benefits and non-Social Security retirement distributions typically represent...

March 8, 2017

Articles, Labor Market, Pension designAdequacy, Aging (and old age), Payment mechanisms

08MarMarch 8, 2017

Automatic Adjustment Mechanisms in Asian Pension Systems?

By Elif C. Arbatli, Csaba Feher, Jack Ree, Ikuo Saito & Mauricio Soto (International Monetary Fund) Automatic adjustment mechanisms (AAMs)-rules ensuring that certain characteristics of a pension system respond to demographic, macroeconomic and financial developments, in a predetermined fashion and without the need for additional intervention-have been introduced in many OECD countries to tackle public pension schemes' deteriorating financial sustainability. Incorporating AAMs-in particular linking retirement age to life expectancy-can be an important part of pension reforms in Asia. If implemented...

March 8, 2017

Articles, Pension design, Regulation, System SustainabilityAdequacy, Investment, Regulation

March 2017