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...

Aufgrund der bekannten Probleme der umlagefinanzierten gesetzlichen Rentenversicherung versucht der deutsche Gesetzgeber seit einiger Zeit, die eigenverantwortliche Altersvorsorge zu fördern. Häufig steht dabei die betriebliche Altersversorgung (bAV) im Fokus. In dieser Arbeit wird mittels...

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...

I theoretically analyze and empirically identify the optimal default savings rate in automatic enrollment retirement saving plans. I derive a formula for the optimal default as a function of sufficient statistics that can be empirically identified. I estimate individual adherence to the default...

Demographic changes increase the necessity to base the pension system more and more on the second and the third pillar, namely the occupational and private pension plans; this paper deals with Target Date Funds (TDFs), which are a typical investment opportunity for occupational pension planners....

Early retirement options alter the accrual of pension benefits, increasing the fraction of total benefits accrued in the early years of work. This is true regardless of whether de facto no worker exercises the early retirement option. No currently used actuarial method correctly calculates the...

This paper analyzes a randomized experiment to shed light on the role of information and social interactions in employees' decisions to enroll in a Tax Deferred Account (TDA) retirement plan within a large university. The experiment encouraged a random sample of employees in a subset of...

This paper provides novel evidence on the labor supply response to negative income shocks in retirement, exploiting an institutional feature that caused differential and unexpected income losses among otherwise identical individuals in a sharp regression discontinuity design. We conclude that...

One problem for sustainability of systems pensions is how people without specialized financial training could manage their resources and their actual personal intentions towards retirement. Research objective is to analyse the relationship among several factors that affect the behaviour towards...

Die Familienunternehmen in Deutschland brauchen andere Rechnungszinsen für die Bildung von Pensionsrückstellungen. Der seit Jahrzehnten geltende Zinssatz von 6 Prozent im Steuerrecht sollte auf ein marktkonformes Niveau gesenkt werden. Für die Handelsbilanz wäre ein fester Zinskorridor...

Aufgrund der bekannten Probleme der umlagefinanzierten gesetzlichen Rentenversicherung versucht der deutsche Gesetzgeber seit einiger Zeit, die eigenverantwortliche Altersvorsorge zu fördern. Häufig steht dabei die betriebliche Altersversorgung (bAV) im Fokus. In dieser Arbeit wird mittels...

Target date funds in corporate retirement plans grew from $5B in 2000 to $734B in 2018, partly because federal regulation sanctioned these as default investments in automatic enrollment plans. We show that adopters delegated pension investment decisions to fund managers selected by plan...

This paper studies the elimination of traditional pensions and subsequent adoption of 401(k) plans by U.S. employers. Using thousands of firm-level natural experiments, it shows that unexpected losses in future compensation engendered by pension plan transitions induce premature retirement for...