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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accumulated achieve allocation annuity Appendix asset returns assumptions bonds capital markets CFDB plan changes Chapter cohorts contribution rate cost ratio countries DC plans DC schemes deficit defined benefit demonstrate diversified downside risk ensure equity ex ante expected debt Figure finance fixed contribution flexible retirement fully funded funded scheme funded system government debt GRRPs guaranteed rate higher Ideal Model impact implemented increase individual accounts INEM surplus inflation intergenerational equity investment policy lower mandatory market portfolio Muralidhar 2001 options parameters partially funded participants PAYGO system payroll tax cuts pension fund pension plan pension reform pension scheme pension system percent of GDP political risk pooled privately managed proposed rate of return real rate real return reduce result retirement wealth return on assets Sainz de Baranda salary growth savings scenario simulations social security system Spain swap Table target wealth transition U.S. dollars variable contributions volatility World Bank Wouden
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...