Pension design Archives - Page 46 of 60 - Pension Policy International

07MayMay 7, 2018

The Use of Locally Imposed Selective Taxes to Fund Public Pension Liabilities

By Thad Calabrese (New York University (NYU) - Robert F. Wagner Graduate School of Public Service) This chapter examines a growing phenomenon in pension funding in which jurisdictions enact a new selective tax or fee, or increase an existing one, to reduce unfunded pension liabilities. Selective sales tax refers to a sales tax confined to a particular commodity or a limited number of commodities, such as a tax on sales of liquor, cigarettes, gasoline, or other petroleum products. Because this...

May 7, 2018

Articles, Pension design2018, Public Policy

07MayMay 7, 2018

Designing Pension Systems with Coherent Funded Private Pillars Including Issues for Notional Defined Contribution Schemes

By William Joseph Price (World Bank) This paper reviews the factors that should guide the design of private funded pensions to create a complete pension system alongside a notional defined contribution -- or public -- component. It argues that a mix of public and private pensions is the most effective option to deliver the best combination of pension outcomes. Pension design should start with a vision for five core outcomes: coverage, adequacy, sustainability, efficiency, and security. Thinking through these outcomes...

May 7, 2018

Articles, Pension design, Savings2018, DC schemes

25AprApril 25, 2018

Do pension participants want the freedom to choose or the freedom to snooze?

By Hendrik P. van Dalen and Kène Henkens Individual freedom of choice is a much heralded and cherished principle in democracies. Milton Friedman and colleagues at his alma mater, the University of Chicago, made this a cornerstone of their belief (Friedman & Friedman, 1990). The freedom of choice is the antidote to excessive government interference and an instrument which enables people to realize their goals and discipline agents and organizations. The call for freedom is getting louder as individualization of...

April 25, 2018

Articles, Investing, OP Ed, Pension design, PPI’s original Op-Eds, Savings, Slider-LeftBehavior, Public Policy, Reform

23AprApril 23, 2018

Portfolio Choice, Trading, and Returns in a Large 401(K) Plan

By Pierluigi Balduzzi (Boston College), Julie R. Agnew (College of William and Mary) & Annika E. Sundén (Stockholm University) This paper examines portfolio choice, trading behavior, and realized rates of return of more than seven thousand 401(k) retirement accounts during the April 1994-August 1998 time period. The evidence on equity allocations is indicative of prudent behavior: on average our investors hold 40% of their 401(k) portfolios in stocks. In addition, patterns of stock allocations by marital status, age, and earnings...

April 23, 2018

Pension designBehavior, US

23AprApril 23, 2018

Do People Really Want Freedom of Choice? Assessing Preferences of Pension Fund Participants

Reforms in private pension plans across the world are opening up more options for pension participants to make choices to suit their preferences. Freedom of choice is however not a unidimensional concept as it is commonly perceived by policy makers. People can value both the freedom to choose as well as the freedom not to choose This observation can have far-reaching implications for pension policy design. By using a unique panel survey among Dutch employees we are able to...

April 23, 2018

Articles, Labor Market, Pension design, SavingsBehavior

23AprApril 23, 2018

Freedom and choice in pensions

The government’s long-term economic plan is providing the foundations for the UK’s future economic security. A key part of this is to foster a new culture of saving. Saving must be flexible and attractive in order to encourage people to take greater responsibility for their financial future. And people need to have access to the best advice. Nowhere is this more important than in saving for a pension and planning for retirement. When this Government took office the pensions system...

April 23, 2018

Management, Pension designBehavior

23AprApril 23, 2018

Defined Contribution Pensions: Plan Rules, Participant Choices, and the Path of Least Resistance

By James J. Choi, David Laibson, Brigitte C. Madrian & Andrew Metrick Over the last 20 years, defined-contribution pension plans have gradually replaced defined benefit pension plans as the primary privately sponsored vehicle to provide retirement income. At year-end 2000, employers sponsored over 325,000 401(k) plans with more than 42 million active participants and $1.8 trillion in assets.1 The growth of 401(k)-type savings plans and the associated displacement of defined benefit plans have generated new concerns about the adequacy of employee...

April 23, 2018

Pension designBehavior, DC schemes, Public Policy

23AprApril 23, 2018

“Rethinking Pension Reform: Ten Myths About Social Security Systems”

By Peter R. Orszag & Joseph E. Stiglitz Averting the Old Age Crisis, the World Bank's path-breaking publication on pensions, trenchantly notes that "myths abound in discussions of old age security."2 This paper examines ten such myths in a deliberately provocative manner. Our hope is not only to spur debate during this "New Ideas About Old Age Security" conference, but more broadly to ensure that policy-makers understand the complexity of pension reform. It is testimony to the power of Averting the Old...

April 23, 2018

Pension designReform, Regulation

23AprApril 23, 2018

Employee Saving and Investment Decisions in Defined Contribution Pension Plans: Survey Evidence from the UK

By Alistair Byrne (University of Edinburgh) This paper uses data from a survey of the members of a UK defined contribution pension plan to explore the attitudes and knowledge of employees faced with pension saving and investment decisions. The results are consistent with behavioural economics in that many employees show limited interest in their pension arrangements. Not all members have received advice about their pension, but those who have are more likely to have calculated their savings needs, to have...

April 23, 2018

Pension designDC schemes, Labor Market

23AprApril 23, 2018

Organizing Old Age Pensions for India's Informal Workers: A Case Study of a Sector-Driven Approach

By M.R. Narayana (University of Mysore) About 88 percent of India’s total labor force is composed of informal (officially labeled “unorganized”) workers. As many as 388 million such workers lack old age income security by way of a pension system. The Atal Pension Yojana (APY) is the latest contributory, national-level old age pension scheme for unorganized workers, with an entry age of 18–40 years. In other words, all current unorganized workers above the age of 40 are excluded. How could...

April 23, 2018

Aging, Articles, Labor Market, Pension design2018, Financial Inclusion, India, Public Policy

May 2018

The Use of Locally Imposed Selective Taxes to Fund Public Pension Liabilities

Designing Pension Systems with Coherent Funded Private Pillars Including Issues for Notional Defined Contribution Schemes

April 2018

Do pension participants want the freedom to choose or the freedom to snooze?

Portfolio Choice, Trading, and Returns in a Large 401(K) Plan

Do People Really Want Freedom of Choice? Assessing Preferences of Pension Fund Participants

Freedom and choice in pensions

Defined Contribution Pensions: Plan Rules, Participant Choices, and the Path of Least Resistance

“Rethinking Pension Reform: Ten Myths About Social Security Systems”

Employee Saving and Investment Decisions in Defined Contribution Pension Plans: Survey Evidence from the UK

Organizing Old Age Pensions for India's Informal Workers: A Case Study of a Sector-Driven Approach