Understanding the Defined Benefit versus Defined Contribution Choice
نویسندگان
چکیده
منابع مشابه
Aggregate Implications of Defined Benefit and Defined Contribution Systems
One of the most significant fiscal challenges facing governments in the next few decades is the financing of retirement benefits. Due to this challenge, governments are considering a variety of social security reforms. This paper investigates the implications of different reforms for a nation’s economy and for the welfare of its citizens. Specifically, the authors explore the economic outcomes ...
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The private pension structure in the United States, once dominated by defined benefit (DB) plans, is currently divided between defined contribution (DC) and DB plans. Wealth accumulation in DC plans depends on the participant's contribution behavior and on financial market returns, while accumulation in DB plans is sensitive to a participant's labor market experience and to plan parameters. Thi...
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The Tepper-Black arguments for tax-arbitrage opportunities from overfunding pension plans are critically examined and modifications proposed. Tax status, a function of current marginal tax rates and expected future taxable income, is predicted to determine funding policy. Tests of this modified tax benefits view suggest that 1) tax status declines are associated with pension contribution reduct...
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We consider an asset-liability management (ALM) problem for a defined benefit pension fund (PF). The PF manager is assumed to follow a maximal fund valuation problem facing an extended set of risk factors: due to the longevity of the PF members, the inflation affecting salaries in real terms and future incomes, interest rates and market factors affecting jointly the PF liability and asset p...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2005
ISSN: 1556-5068
DOI: 10.2139/ssrn.755064