Planning for retirement and subsequent execution of the plan are difficult, but essential for financial security in old age. To formally analyse the interplay between planning and self-control, I introduce cognitive costs of formulating a plan into the dual-self model of impulse control. The...

We establish 16 good practice principles for modelling defined contribution pension plans. These principles cover the following issues: model specification and calibration; modelling quantifiable uncertainty; modelling member choices; modelling member characteristics, such as occupation and...

This paper derives the optimal asset allocation and contributing strategies in the DC occupational pension scheme of Korea using a goals-based investing approach. Essential and aspirational goals are defined as minimum and target income replacement rates in a DC occupational pension scheme,...

This paper examines whether a tradeoff exists between the level of pension benefits and wages for comparably skilled workers. The 1983 survey of Consumer Finances is used to match detailed information on pension plans to detailed personal characteristics of a random sample of the population. The...

This paper investigates empirical issues related to pensions. It uses the 1983 Survey of Consumer Finances (SCF), a data set with detailed information both on workers and on their pensions. The paper presents new estimates of pension values for various groups. It compares pension values based on...

This paper presents survey results on the incidence of individual retirement account (IRA) ownership in the United States and the contribution, rollover, and withdrawal activity of IRA-owning households. In mid-2021, 37 percent of US households owned IRAs. More than eight in 10 IRA-owning...

Despite widespread support for government policies aimed at improving workplace retirement plans, nearly half of wage and salary workers in the U.S. still lack coverage. The lack of employer-sponsored pensions or other workplace retirement saving plans has led to state-level government...

Because public firms are not required to disclose the monetary value of pension plans in their executive pay disclosures, financial economists have generally analyzed executive pay using figures that do not include the value of such pension plans. This paper presents evidence that omitting the...

If the intent of the Employee Retirement Income Security Act, ERISA, was to assure that beneficiaries of insolvent pension plans receive adequate pension benefits, sharp increases in nominal rates of interest have blunted that purpose. Without an increase in these rates, the Pension Benefit...

We establish 16 good practice principles for modelling defined contribution pension plans. These principles cover the following issues: model specification and calibration; modelling quantifiable uncertainty; modelling member choices; modelling member characteristics, such as occupation and...

We conducted a randomized controlled trial to understand how a web-based retirement saving calculator affects workers’ retirement-savings decisions. In both conditions, the calculator projected workers’ retirement income goal. In the treatment condition, it additionally projected retirement...

This paper uses the theory of "capital as power" to analyze the struggle over public pensions in the United States. While mainstream commentators claim that public pensions must be "reformed" because they are "under funded", I argue that the metrics used to make this argument are unsound....

The paper develops a model of retirement based on the option value of continuing to work. Continuing to work maintains the option of retiring on more advantageous terms later. The model is used to estimate the effects on retirement of firm pension plan provisions. Typical defined benefit pension...

This paper aims to evaluate Pension Benefit Guaranty Corporation (PBGC) insurance values through regime-switching models. We separate periods of the economy with faster growth from those with slower growth to observe long-term trends in the economy. We derive a fair PBGC insurance pricing...

This paper estimates the causal impact of receiving pension payments on debt behavior among older adults, with a natural experiment around China's New Rural Pension Scheme (NRPS), one of the world's largest social pension programs. Using a fuzzy difference in discontinuity research design and...

We investigate how the Japanese pension market for funded employment-based pensions is changing and how it might be strengthened in order to better serve one of the most rapidly aging populations in the world. Public and private pensions in Japan are estimated to hold around US$3 trillion,...

This paper explores the risks and benefits of holding company stock in employer-sponsored defined contribution (DC) retirement plans. We address three questions: (1) What is the role and function of company stock in such plans? (2) Who might be affected by enhanced portfolio diversification in...

Defined benefit pension plans are a bedrock of the U.S. economy providing guaranteed payment streams at pre-established amounts. Results suggest public plans, sponsored by State and Local governments, and private plans, sponsored by public corporations, are unfunded. State plans were found to...

With millions of US households personally directing their retirement savings, the Investment Company Institute (ICI) has sought to track retirement savers’ actions and sentiment. This report, the 14th in the series, summarizes results from a nationally representative survey of Americans aged...

This report simulates the potential impact on retirement income adequacy of five different proposals. It finds that the combination of Automatic Contribution Plan/Arrangement (ACPA) provisions and enhanced Saver’s Credit are projected to have a material impact on reducing retirement savings...

This study proposes a novel structured product (SP) among the basket of financial products sold to pension fund members. The product offers to hedge defined contribution (DC) pension portfolio members against capital market risk. Based on trading risk-free government bonds and call options on a...

I explore the role of corporate social responsibility (CSR) in mitigating managers' opportunistic behavior related to defined benefit (DB) pension plan management. Strong CSR firms tend to engage less in earnings manipulation associated with executive option granting and CFO's pay sensitivity to...

Employer-sponsored group pension plans offer an unusual window into long-term employment relationships. This is because the pension promise is documented in a set of explicit statements regarding future payment and employment agreements between workers and their employers. In this paper, we show...

This paper begins by examining the ways in which pension liabilities are and are not like corporate bonds. Some conceptual issues involved in valuing future pension obligations are then discussed. The second section considers the advantage to firms of fully funding their pension obligations and...

When analyzing tax and related issues, financial economists typically invoke the simplest and the most tractable model of the labor market. This is the spot model, in which the worker's cash wage plus accruing pension benefit must equal the value of the worker's marginal product in each and...

Varity Corporation V. Charles Howe, Robert Wells, Ralph W Thompson, Patrick Mousel, On Behalf Of Themselves And As Representatives Of A Class Of Persons Similarly Situated, And John Altomare, Charles Barron, Alexander Charron, Charlotte Chiles, Anita Crowe, Ray Darr, Doris Guidicessi, Barnett...

Tax-preferenced retirement plans are designed to be vehicles for saving for retirement, not massive tax shelters for wealthy individuals. Because tax preferences for retirement savings cause a loss in federal tax revenue, and are one of the largest sources of tax expenditures, it has long been a...

Subchapter D of the Internal Revenue Code endows certain advance-funded, employer-sponsored retirement arrangements with the advantage of relatively pure income tax deferral. Most of the deferral is at least originally traceable to contributions to employer-sponsored plans, although individuals...

Under ERISA, an employer who withdraws from an underfunded multiemployer pension plan must pay its share of the plan's unfunded vested benefits. ERISA directs that this liability be calculated as of the last day of the year immediately prior to the year of withdrawal. The resulting liability is...

As we approach the third decade of the Employee Retirement Income Security Act ("ERISA")' era, to what extent is it fair to say that ERISA is a statute that sounds in equity? What difference does the answer make in terms of the statute's success in reforming the delivery of employee benefits?If...

In 1947, Congress enacted the Taft-Hartley Act, which was designed to curb perceived abusive conduct by organized labor. One of Congress's concerns in 1947 was mismanagement of union-sponsored pension plans. Taft-Hartley made it illegal for an employer to transfer money to a union pension plan...

Defined benefit retirement plans are systematic programs in which employers promise to pay employees a specified benefit at retirement, generally in the form of a life annuity. During the period from 1980 through 1987, employers terminated and recovered assets not obligated for pension benefits...

Unsustainable defined-benefit public pension scheme, rising life expectancy, and high level of unemployment endanger the socioeconomic and political stability of Uganda’s economy. This research approaches the problem from labor supply point of view by: (i) analyzing the effect of the public...

This study examines the relation between employee incentives and corporate innovation. We find that firms with a higher defined benefit (DB) pension value secure more patents and patent citations. We further show that pension freezes, which stop the accumulation of pension obligations,...

Alt-labor and the sharing economy have recently come to dominate the writings of labor and employment law scholars. Misclassification, union organizing, and wage and hour issues, have all been scrutinized as emerging issues for those who engage in alt-labor activities. In all this scholarship,...

A board’s ability and disposition to monitor management, estimated as Board Co-option, affects the firm’s pension policy. I implement a novel board monitoring measure as the percentage of directors appointed after the CEO assumes office, Board Co-option, and find that as Board Co-option...

The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) of 2019 made very significant changes to required minimum distributions (RMDs) paid to beneficiaries of defined contribution retirement plans, including IRAs. The Act generally applies to beneficiaries of a defined...

Many firms give post-retirement increases in pension benefits to retirees even though the pension contract does not require such increases. A leading explanation of this behavior is that benefit increases are part of an implicit contract where retirees accept lower initial benefits in return for...

This paper estimates the effects on steady state retirement by men of changes in pension" plans and social security in the 1970's and 1980's. Work incentives associated with pension" coverage and plan characteristics are calculated primarily from the 1969-79 Retirement History" Study and the...

This Working Paper looks at the CJEU’s changing interpretation of Article 8 of Directive 2008/94/EC (protecting pension rights on employer insolvency) over the last 14 years through its decisions in Robins, Hogan, Webb-Sämann, Hampshire and Bauer. The CJEU both decided that pension protection...

This paper estimates a structural model of family retirement using U.S. data from the Health and Retirement Study (HRS) and from the National Longitudinal Survey of Mature Women. Estimates using the HRS benefit from having, for each spouse, earnings histories provided by the respondent and the...

Pensions have played a key role in the transformation of the way workers are paid in the US labor market This paper reviews and synthesizes what is known about the form and function of employer-provided pensions, and identifies areas where further information is most needed. for increasing our...

This study illustrates and interprets changes in pension plan retirement formulas and benefit provisions over the last two decades, using extensive information on private sector pension plans gathered by the U.S. Department of Labor since 1980. Data generated from the Employee Benefits Survey...

Labor force participation of men over age 50 fell sharply in the UK between the early 1970s and early 1990s. Despite the fact that the state retirement pension does not become available to men until age 65, half of men aged 60-64 were economically inactive in the mid 1990s. The main element of...