Defined Benefit Plan

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Mean-variance optimization problems for an accumulation phase in a defined benefit plan

Mean-variance optimization problems for an accumulation phase in a defined benefit plan

One of the most important characteristic of financial assets returns is their high variability, resulting from the heavy-tailed nature of empirical returns and observ- able large sudden movements in stock prices. The so-called six-standard deviation market moves are repeatedly seen in the financial markets around the world. This properties rule out the possibility that the marginal distribution of an asset return is Gaussian. Moreover, all models of the stock price dynamics which generate continu- ous sample paths are also inadequate. It is now well-known, see chapters 1 and 7 in Cont, Tankov (2005), that Lévy processes can easily reproduce heavy tails, skewness and other distributional properties of asset returns, and, what is very important as well, can generate discontinuities in the price dynamics. As Lévy processes generate more realistic sample paths of stock prices, one should replace, in the celebrated Black-Scholes model, a Gaussian noise by a Lévy noise. This extension is worth the effort, as a "good model" of investment returns is a crucial factor when constructing strategies for an accumulation phase of a retirement plan.
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IAS 26 Accounting and Reporting by Retirement Benefit Plans   A Closer Look

IAS 26 Accounting and Reporting by Retirement Benefit Plans A Closer Look

Under a defined benefit plan, the payment of promised retirement benefits depends on the financial position of the plan and the ability of contributors to make future contributions to the plan as well as the investment performance and operating efficiency of the plan. A defined benefit plan needs the periodic advice of an actuary to assess the financial condition of the plan, review the assumptions and recommend future contribution levels. The objective of reporting by a defined benefit plan is periodically to provide information about the financial resources and activities of the plan that is useful in assessing the relationships between the accumulation of resources and plan benefits over time. This objective is usually achieved by providing financial statements including the following: (a) a description of significant activities for the period and the effect of any changes relating to the plan, and its membership and terms and conditions;
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Defined benefit pensions and homeownership in the post Great Recession era

Defined benefit pensions and homeownership in the post Great Recession era

service 2 . Defined contribution plans – such as an employee sponsored 401(k) or 403(b) – are managed by the employee, who bears all the risk, and receive contributions from the employer. Defined contribution plans often carry more risk than defined benefit plans as they are sensitive to the portfolio and asset allocations the employee makes (Poterba et al. 2006). Thus, without the guaranteed income provided by a defined benefit plan, older (for the purpose of this paper, those age 55+ and in their late working years) and retired households (generally age 65+) were subject to greater losses in savings and wealth during the Great Recession. In this paper, I explore the role of defined benefit plans in homeownership after the Great Recession.
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Defined benefit Pension Plans: Are They as Good as They Seem?

Defined benefit Pension Plans: Are They as Good as They Seem?

Two types of post-retirement pension plans existed that were used to reward employees for their long service to an organization. Defined contribution plans had a set amount paid into a fund on a regular basis by employers, and often employees, and no promise was given with respect to an end amount the employee would have for retirement. Ideally, a trustee administers the plan and contributions were invested according to the contributors’ risk tolerance. This type of plan did not have an undue burden on the company and the payments formed part of the remuneration package. The second type, a defined-benefit plan, specified the amount an employee would be paid from the day they retired until death. Funds were paid to a trustee in accordance with actuarial projections based on factors such as mortality rates, employee turnover, average salary, etc. These plans were very expensive because the payout formula was typically based on years of service. The longer an employee stayed with the organization the higher the pension when they retired. Clark and Monk [9] found defined-benefit pension plans in the U.S. and the U.K. were either curtailed or significantly changed in the last 30 years. As recently as 2005, they found the existence of private sector defined-benefit pension plans restricted to a small percentage of unionized employees in certain industries. Gerrans and Clark [10] found Australian pension plan participants voluntarily switching from defined-benefit to defined contribution plans. Recently, pension plans offered to new employees tended to be defined contribution, if any.
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which the plan sponsor will pay within a particular year. The contribution rate comprise of the aggregate financial resources allocated to the defined benefits plan by either the sponsor or the insured plan members. For a defined benefit plan funding policy, the aggregate contribution requirement is equivalent to the normal cost of providing accrued benefits for plan members in service over the year including the amortization payment schedule of the implicit pension debt representing an unfunded actuarial liability for that year. In other words the employer’s contribution is the sum of normal cost plus amortization less employee contributions. A funding policy is not meant to change significantly on a yearly basis but rather should address the means and period of time through which investment expenses are paid. Since the actuarial cost method such as projected unit method (PUC) technically allocates the subsisting total present value of future benefits over the current plan members’ working careers, the funding policy would then describe the numerical calculation of actuarial accrued liabilities together with the present value of future normal costs. [3] argues that in order to address the problem of disequilibrium, the funding policy together with actuarial cost methods should deal appropriately with cases where there are insufficient assets to fund retirees’ liabilities. It is the funding policy which actually determines the appropriate asset smoothing methods applied to recognize profit and loss in pension assets over the time whether it should be open or closed and deviation of the funding value from the market value of asset.
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Pension insecurity in Ireland

Pension insecurity in Ireland

Two views can be taken on this issue. First, the state could demand, in exchange for the tax subsidy, that benefits in respect of past service be secured with the asset-backing equivalent to the fair value of a guaranteed pension. This would put members of defined benefit schemes in the private sector in the same position as their public sector counterparts. However, such a requirement would entail a very material funding burden (see Figure 4), as it brings the pension promise up from junk status to sovereign status. The extra funding burden, in turn, will accelerate the widespread closure of such schemes in the private sector. So the result that can be anticipated is that making the pension sovereign-secure in the private sector will mean that there will be few, if any, such pensions. The alternative is a compromise: to demand a lower level of asset-backing to the pension promise, with the reduced security that this implies. This reduced security of the pension promise is perhaps expressed as a percentage of the fair value of a state guaranteed pension. In this later case, the member should be made aware of their relative lack of security and informed of the actual percentage of the fair value of their individual entitlement that enjoys asset support. This would incentivise the individual to make additional pension provision for himself. So what level of asset-backing is reasonably achievable?
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Innovative operation in A Private University of Technology-An Application of Strategy Map on Balanced Scorecard

Innovative operation in A Private University of Technology-An Application of Strategy Map on Balanced Scorecard

Yin (2008) indicated three conditions of using case study properly: (1) the research questions of the study were “how” and “why” questions, (2) the researcher can’t control on the subject obviously, (3) the research focuses on the present event, not the past. Furthermore, in the process of the research, the research design can be adjusted and modified, not limited to the original research plan. Due to being consistent with the above conditions, this study applied the case study research method. The reasons of applying case study were described carefully below:
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How Interlinks Influence Federated over SPARQL Endpoints

How Interlinks Influence Federated over SPARQL Endpoints

By categorizing the availability of link of data integration in Federated over SPARQL Endpoints, we define benefit and cost that arise as result of the existence of link as well as the type of link. Hartig [4] proposed query execu- tion time as cost and number of result as benefit in Link transversal. In the Link Traversal environment, the data knowledge is hard to know in advance and the data could be change dynamically. Contrast to Link Traversal envi- ronment, the data in the Federation over SPARQL End- points can be observed before query execution. Therefore, we consider query completeness and soundness as bene- fit instead of number of result. The high number of result does not mean better result because that might be redun- dant result or invalid result. The query completeness is defined as number of true answer that is stored in dataset, whereas the query soundness refers to number of retri- eved of true answer. We adopt completeness and sound- ness metric combination from LUBM [10]. Let S q be
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Europeanisation through elective affinities: Active social policy model and national control policies of the unemployed. GSPE Working Paper 05/05/2009

Europeanisation through elective affinities: Active social policy model and national control policies of the unemployed. GSPE Working Paper 05/05/2009

Le renforcement du contrôle des chômeurs observable depuis la fin des années 1990 dans les pays d’Europe occidentale soulève deux questions. Comment le contrôle, à la fois ancien et traditionnellement marginal dans les politiques du chômage, a-t-il été promu comme un enjeu majeur ? Pourquoi des politiques nationales d’indemnisation du chômage différenciées convergent-elles à cet égard, alors même que l’Union européenne n’a en la matière pas de compétence directe ? Trois niveaux d’analyse sont esquissés pour répondre à ces questions. Tout d’abord, la mise en évidence des évolutions historiques qui ont affecté le chômage et son traitement public, avec en particulier le processus de désobjectivation du chômage et l’instauration de rapports de force socio-politiques défavorables aux chômeurs, que l’on retrouve largement à l’échelle européenne. Ensuite l’établissement d’affinités électives, au sens de Max Weber, entre le modèle de l’Etat social actif promu au plan supranational, et les orientations rigoristes du traitement des chômeurs au plan national. Enfin l’analyse, à partir du cas français, des usages du comparatisme international, montre comment des politiques obéissant à des logiques nationales peuvent s’autoriser de tendances européennes qu’elles contribuent en retour à réaliser.
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Implementation of an E-Government Plan in the Peruvian Public Sector: a Case Study

Implementation of an E-Government Plan in the Peruvian Public Sector: a Case Study

The mission of the E-Government Plan is: to provide a unified technology direction and transverse processes of all the internal and external organization for the benefit of citizens and strengthening the Ministry, ensuring the protection of information dissemination and access to knowledge sources in relation to the tangible and intangible cultural heritage.

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Contingent Workers: A Full Time Job for Employers, Benefit Plan Administrators and the Courts

Contingent Workers: A Full Time Job for Employers, Benefit Plan Administrators and the Courts

Contingent Workers A Full Time Job for Employers, Benefit Plan Administrators and the Courts SMU Law Review Volume 52 | Issue 4 Article 15 1999 Contingent Workers A Full Time Job for Employers, Benefi[.]

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Essays in economics

Essays in economics

The data collected include information on all ocoipatioual pensions both defined benefit and defined contribution, it focuses on the allocation of pension funds’ assets and investments, [r]

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Reformen der Alterssicherung und der sozioökonomische Status Älterer in Großbritannien und Deutschland

Reformen der Alterssicherung und der sozioökonomische Status Älterer in Großbritannien und Deutschland

Die betriebliche Alterssicherung, die vormals in Großbritannien als eine „Erfolgsgeschichte“ galt, ist durch die Zunahme der Lebenserwartung und schlechter Verzinsung unter Druck geraten. Ei- nige Unternehmen erhöhten ihre Beitragszahlungen um dies zu kompensieren, wohingegen andere durch den Wechsel zu beitragsorientierten Formen ihr finanzielles Risiko begrenzt haben. Gleich- zeitig reduzierten sie ihre Beitragszahlungen, so dass die vorausberechneten Renten etwa 30% niedriger sind. In einigen der leistungsorientierten Systeme ist ein weiterer Anspruchserwerb aus- geschlossen worden, während in anderen Arbeiter nach jahrelangen Beitragszahlungen nur niedri- ge Rentenansprüche verbleiben. Zwischen 2000 und 2004 ist über die Hälfte der privaten leis- tungsorientierten Altersicherungssysteme für neue Mitglieder geschlossen worden und rund ein Drittel nahm anderweitige Leistungseinschränkungen vor (GAD 2005). Ein finanzielles Unter- stützungssystem wurde auf geringem Niveau eingerichtet, um zumindest eine teilweise Kompen- sation für die verlorenen Rentenansprüche zu gewährleisten; zudem wird seit April 2005 eine ge- wisse Kompensation von dem neu eingerichteten Pensionssicherungsfond (Pension Protection Fund) zur Verfügung gestellt werden. Wie auch die Pension Benefit Guaranty Corporation in den USA oder der Pensionssicherungsverein in Deutschland wird dieser Fond durch eine Abgabe von Firmen, die ein betriebliches Alterssicherungssystem eingerichtet haben, finanziert. Es ist aller- dings wahrscheinlich, dass der Fond von Ansprüchen überschwemmt wird und dass staatliche fi- nanzielle Hilfen in der Zukunft notwendig sind.
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Economic and Financial Establishment Must Be Primary Analysis for Public Policy like Aral Pension Yojana

Economic and Financial Establishment Must Be Primary Analysis for Public Policy like Aral Pension Yojana

Swabalamban scheme since 1 June 2015. In the finance budget of 2015-16, the finance minister announced, Atal Pension Yojana(APY) in order to provide pension benefit to the unorganized sector workers, who are not entitled to any kind of statutory social security benefit. These unorganized sector working population constitute the 88% of total labor force of 472.9 million (Ministry of Statistics and Program Implementation, 2010-11). Under this APY scheme government is guaranteeing defined pension benefit in multiple of 1000 up to 5000 per month to the subscriber of the scheme and in case of death of the subscriber spouse/nominee of the subscriber would be entitled to the monthly pension and the accumulated corpus in the account.
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ERISA Preemption: Will the Elimination of the ERISA Preemption Clause Help or Harm America's Ability to Deal with Its Pending Health Care Crisis

ERISA Preemption: Will the Elimination of the ERISA Preemption Clause Help or Harm America's Ability to Deal with Its Pending Health Care Crisis

on average for their employee for health care. Id. For discussion sake, lets estimate that the employer spends on average $5000 per employee. Id. Self-insured employers are arguing that if the preemption clause is eliminated, they will simply give the employee that $5000 and wipe their hands clean of the health care benefits business altogether. Id. Ruth Coleman states, “employees do not know much about buying insurance for themselves. It is a very complicated process. So how are they going to know how to make and educated decision? How many know what the difference between a best rating of A versus a best rating of B-? How many understand the nature of health care so that they can pace two plans side-by-side and compare the various plan options? Who is going to make those decisions? Furthermore, without the employers purchasing power, the employee will be forced to pay much higher prices and probably have to settle for lower quality. Because, with purchasing power comes an ability to demand quality. The employee is going to get the shaft [if the preemption clause is eliminated].” Id.
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Health of community nurses: a case for workplace wellness schemes

Health of community nurses: a case for workplace wellness schemes

^Choosing Activity: a physical activity action plan' (DH, 2005) resulting from implementation of the Choosing Health White Paper, it is important to ensure that they benefit themselves from the implementation of this policy as strategies adopted by their employers providing opportunity to improve their physical and mental well- being within the workplace, could improve nurses' health and impact on the health care they provide for others. This suggests that health promotion interventions in the health- care setting have the opportunities to impact both directly on the staff and indirectly on patient care.
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Optimal Portfolio and Strategic Consumption Planning in a Life-Cycle of a Pension Plan Member in a Defined Contributory Pension Scheme

Optimal Portfolio and Strategic Consumption Planning in a Life-Cycle of a Pension Plan Member in a Defined Contributory Pension Scheme

The structure of the remainder of the paper is as follows. Section 2 presents the formulation of the problem. In section 3, we presents the description of the model. In section 4, we give the optimal portfolio and consumption processes and expected utility of terminal wealth of the PPM using power utility function. In section 5, we presents the optimal expected value of the PPM’s final wealth and the expected consumption process of the PPM life-cycle in pension plan. Finally, section 6 concludes the paper.

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Thesis

Thesis

participants’ school would benefit from community-wide suicide prevention trainings. There were a few questions that asked for numeric values and also yes/no questions which were quantitatively analyzed in more traditional methods using the same parameters of percentages in relation to the overall sample size, mean, and standard deviation. These questions included whether or not teachers had received formal education in the area of suicide education, if they had received personal development in the area of suicide prevention, if they had sought out education on the topic of suicide intervention, if the teacher had or ever referred a student whom they believed to be suicidal to a counselor (as well as how many students they had referred over the course of their career), and how many students that they had referred had received treatment for suicidal thoughts or tendencies. Whether or not the participant would like to receive more professional development in the area of suicide prevention was also asked and analyzed as a yes or no question as well. Teacher demographics included grade, subject, years of teaching experience, birth year, school system, and levels of degrees were similarly
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