Rethinking Pension Reform
Cambridge University Press, Aug 2, 2004 - Business & Economics - 247 pages
This book is unique as it presents an academic and a practical aspect on managing pension funds to clarify the global debate on social security. The authors establish the basic choices in designating any system to help policy makers develop the system that achieves their many objectives. The success of reforms depends on financial innovation to mitigate key risks and some innovations are discussed, which also demonstrates how pension reform choices affect the achievement of retirement objectives. Finally, the authors examine some proposed hybrid options to show how the beneficial features of these hybrids can be captured through good design in a single fund.
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accounts accumulated achieve additional allocation allow amount annual annuity Appendix assets assume assumptions average balance benefits bonds calculate capital CFDB plan changes Chapter choice cohorts contribution rate cost countries create cuts DC plans debt deficit defined demonstrate developing discussed effect ensure equity expected Figure final finance fixed funded system future given greater growth guaranteed higher impact implemented income increase individuals inflation interest investment issues Italy less lower Muralidhar offer options parameters partially participants path PAYGO payroll tax pension fund pension plan pension system percent performance period political pooled poor population portfolio possible problems productivity projections proposed rate of return ratio reduce reform replacement rate result retirement risk salary savings scheme shows simulations social security system Source structure suggest surplus Table target transition United variable volatility wages wealth World
Page 227 - ... earnings in excess of the exempt amount. These beneficiaries may thus have their benefits ceased in the actual year of excess earnings, rather than receiving overpayments which must then be recouped later. Work effort and the retirement test. The Congressional Budget Office, in its May 23, 1991 testimony before the Committee on Ways and Means Subcommittee on Social Security, made the following comments regarding the work-response of seniors to the retirement test: Eliminating the earnings test...