...Contributions to 401(k) Retirement Plans. (Pension Research Council Working Paper). Retrieved from http://www.archetype-advisors.com/Images/Archetype/Participation/how%20much%20is%20too%20much.pdf. Gering, J., & Conner, J. (2002). A Strategic Approach to Employee Retention. Healthcare Financial Management, 40-44. Retrieved from http://www.library.armstrong.edu/eres/docs/eres/MHSA7650-1_CROSBY/7650_employee_satisfaction_retention_1.pdf. Kotlikoff, L., Wise, D. (1987). Employee Retirement and a Firm's Pension Plan (Working Paper, 2323). National Bureau of Economic Research. Retrieved from http://www.nber.org/papers/w2323.pdf Milkovich, G. T., Newman, J. M., & Milkovich, C. (2013). Compensation (11th Ed). Burr Ridge, Ill.: Irwin/McGraw-Hill. Wise, D., Stock, J. (1988). Pensions, the Option Value of Work, and Retirement. (Working Paper, 2686). National Bureau of Economic Research. Retrieved from http://www.nber.org/papers/w2686.pdf. Stock, J. H., & Wise, D. A. (1990). The pension inducement to retire: An option value analysis. In Issues in the Economics of Aging (pp. 205-230). University of Chicago Press, 1990. Bodie, Z., Marcus, A. J., & Merton, R. C. (1988). Defined benefit versus defined contribution pension plans: What are the real trade-offs?. In Pensions in the US Economy (pp. 139-162). University of Chicago Press. Choi, J. J., Laibson, D., Madrian, B. C., & Metrick, A. (2002). Defined contribution pensions: Plan rules, participant choices...
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...THE IMPACT OF PENSION SECTOR REFORMS ON THE FINANCIAL VIABILITY OF PENSION PLANS IN KENYA By Akwimbi Ambaka William March 12, 2011 Department of Business Administration, School of Business, University of Nairobi, Kenya Electronic copy available at: http://ssrn.com/abstract=1784297 TABLE OF CONTENTS Declaration List of Tables List of Figures Appendices Abbreviation CHAPTER ONE: INTRODUCTION 1.0. 1.1. 1.2. 1.3. 1.4. 1.5. 1.6. Background of the Study The Conceptual Basis of Social Security Schemes The Kenyan Contextual Basis of Social Security Problem Statement Research Questions and Objectives Research Hypotheses Importance of the study 1 3 10 19 22 22 23 CHAPTER TWO: LITERATURE REVIEW 2.0. Introduction 2.1. Review of Theoretical Literature on Financial Viability of Pension Schemes 2.2. Review of Empirical Literature of Studies on the Solvency of Pension Schemes 2.3. Models for Evaluating the Financial Viability of Pension Schemes 2.4. A Summary of the Knowledge and Research Gaps 25 25 46 60 68 REFERENCES APPENDICES i Electronic copy available at: http://ssrn.com/abstract=1784297 GLOSSARY CAC CALPERS CAPSA CBS C-D CEO CGE CSR DB DC E.T.I EME ERISA FMA GASB GDP GSP INPFRS INSS IPD IRA IRBS KNAO KNBS LUPFUND NSE NSSF NYSCRF OECD OSFI PBGC PLC PPF PPR PROST PRPOPS PSPS PSSS RBA SAM SIPO SOX SSNIT SSS Commonwealth Authorities and Companies Act CEO California Public Employees Retirement System The Canadian Association of Pension Supervisory Authorities Central Bureau...
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...Pension costs draining Miami C. Esquijarosa Master of Public Administration Capstone MMPA 6910, Section 2 Instructor Anne Hacker February 21, 2010 Table of Contents The City of Miami……....……………………..………………………………………………….1 The City of Miami vs. Gates Case………………………………………………………………..2 The retirement systems………………………...………………………………………………….2 The Research Question………..…………………………………………………………………..4 Stakeholders…………………………………...…………………………………………………..5 Ethical Issues…………………………..….………………………………………………………8 Data Gathering Methods….……………………………………………………………………..10 Data Analysis…….……………..………………………………………………………………..12 Conclusions and Recommendations.…………………………………………………………….13 Annotated Bibliography………………………………………………………………………… Pension costs draining Miami In 1896, the City of Miami (the “City”) became the first city to be incorporated in Miami-Dade County. It is the largest of 35 local municipalities within the County; has an estimated population of 404,048 people; and has a land area of 35 square miles (US Census Bureau, 2006). Miami employs 3,408 full-time positions and several hundred part-time positions (Miami, 2010, p.73). The City of Miami has three single-employer defined benefit pension plans: The City of Miami Firefighters’ and Police Officers’ Retirement Trust (FIPO); the City of Miami General Employees’ Retirement Trust (GESE); and the City of Miami Elected Officers’ Retirement Trust (EORT). With the exception of the EORT...
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...SEEING THROUGH BRITISH PENSIONS HOW TO INCREASE COST TRANSPARENCY IN UK PENSION SCHEMES DAVID PITT-WATSON HARI MANN JULY 2012 www.thersa.org Contents Acknowledgements Tomorrow’s Investor: introducing fit-for-purpose pensions to the UK Introduction Levels of transparency Why don’t customers demand change? What information should be provided? Summary and recommendations Appendices 3 4 6 9 15 18 22 24 Contents 1 Acknowledgements The authors would like to thank the many people involved in this work. In particular, the advisory board of Tomorrow’s Investor: its chair, Sir John Banham, and its members, Robin Ellison, Philip Goldenberg, Alwin Oerlemans, Matthew Taylor and Lindsay Thomas. Thanks also to Pinsent Masons for its help in resolving legal issues and APG, the leading Dutch pension fund, for sponsoring the work. Acknowledgements 3 Tomorrow’s Investor: introducing fit-forpurpose pensions to the UK Three years ago, the RSA began investigating the efficacy of the UK investment system. After in-depth research, including the use of ‘citizen juries’, we concluded that it was not fit for purpose. Private pension saving in particular was found to be patchy, costly and poorly structured. However, we suggested that, with some modest changes, the private pension system in Britain could be radically improved. This requires two things: first, a system of low-cost, auto-enrolled pension provision; second, a recreation of collective pension structures which share...
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...Evanston, IL 60208 Telephone: (847) 491-2662, Fax: (847) 467-1202 E-mail: c-chapman@kellogg.northwestern.edu SSRN Research Page: http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=417740 Education HARVARD BUSINESS SCHOOL, BOSTON, MA Doctor of Business Administration degree, Accounting and Management, 2008. Dissertation Committee: Professors Paul M. Healy, V.G. Narayanan & Thomas J. Steenburgh. HARVARD BUSINESS SCHOOL, BOSTON, MA Master of Business Administration degree, 2003. Graduated with High Distinction as a George F. Baker Scholar. UNIVERSITY OF OXFORD – MAGDALEN COLLEGE, ENGLAND Master of Arts degree in Mathematics, 1995 Bachelor of Arts degree in Mathematics, 1989. Graduated with Honors. Publications “Buy-Side vs. Sell-Side Analysts’ Earnings Forecasts” with Boris Groysberg and Paul M. Healy. The paper examines relative accuracy and bias of different analysts and proposes a number of possible explanations for the findings that the analysts at the Buy-side firm studied appear significantly less accurate and more optimistic than those working for sell-side firms. Financial Analysts Journal, July/August 2008, Vol. 64, No. 4: 25-39. “An Investigation of Earnings Management through Marketing Actions” with Thomas J. Steenburgh. Combining new, hand-collected data regarding firm performance with an existing and widely studied dataset, the paper examines how firms use marketing actions to manage earnings. We identify predictable changes in the frequency of...
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...FACTORS INFLUENCING PENSION MANAGERS’ INVESTMENT DECISION A CASE STUDY OF ZANZIBAR SOCIAL SECURITY FUND (Z.S.S.F) By: ABDULAZIZ M. RAMIA REG. NO: ZU/MBA/0001/12 FACULTY OF BUSINESS ADMINISTRATION PROPOSED SUPERVISOR: DR. MASOUD A Concept Paper Submitted in Partial Fulfillment of the Requirement for the Degree of Master of Business Administration in Finance (MBA- Finance) of Zanzibar University 1.0 INTRODUCTION AND BACKGROUND OF THE STUDY 1.1 Introduction In most economies value is presently obtained through a market process where supply meets demand. Here is where finance and financial markets come into play. They provide the tools to optimize the allocation of resources through time and space and to manage risk. Finance is by nature quantitative like economics but it is subject to a large level of risk. It is the measurement of risk and the implementation of decision-making processes based on risk that makes finance a quantitative science and not simply accounting. Pension is a benefit promised to an employee by an employer during employment and is payable on leaving or retiring from the employer’s service. In the developed countries, pension plans are established and managed through creation of trust. In many cases, the fund is invested by the employer and pension is payable from the recurrent revenue of the employer. In general the main purpose of pension is to provide people with an income when they are no longer earning a regular income from employment...
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...Is the Difference in Accounting Treatment of Post-Retirement Benefits under IFRS Beneficial or Detrimental to the Financial Position of a Company Currently Reporting Under US GAAP? Megan N. Cook, CPA, CFE Accountancy 521 Professor Lawrence March 9, 2009 The first pension plan offered by an American employer was that of American Express in the year 1875. Amex’s plan did not resemble the plans that we see in today’s time; the first “modern” defined benefit plan was created in 1940 by the automotive behemoth General Motors. These plans of the past still do not resemble plans that we are familiar with today. In the past, employers could exercise a “pension put” option and, in essence, close the plan down at the current level of funding and turn the assets over to the retirees. This is not an optimal situation, as many plans at the time were severely under funded and retirees would be left with pennies on the dollar of what they were counting on for retirement. (Fortune, 2005) Post-retirement benefits are volatile on a couple of different fronts; up until the reforms in 1974 which created ERISA and the PBGC, employees had to put blind faith in their employers to secure their futures after their working years were over. (Fortune, 2005) On another front, these benefits pose a significant accounting problem – how should a company account for the costs and liabilities associated with these benefits they had to give their employees at a later and relatively indeterminable...
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...September 19, 2012 ACG 4111 Abstract There is a wide range of different types of compensation and other benefits. This paper will focus on three of many, Share based compensation to include stock options and restricted stock, Base Compensation and Pension Plans. Throughout this research project; there will be observance of the accounting treatments and disclosures along with the benefits, advantages and disadvantages to employees, share holders and investors. This will allow and develop a better understanding as to why compensation and other benefits are so important to employers, employees and shareholders. Understanding Different Types of Compensation and the3 Benefits Compensation and Benefits comes in many different forms. The major goal for compensation and benefits is to reward employees for services provided by an individual for the benefit of the organization. It’s a set of programs, aiming to achieve and attract capable workers to a particular business. Compensation and benefits also helps motivate employees towards superior performance and retaining these services for a long period of time (Ricci, Ignacio Human resource management. Website). The three types of Compensation and Benefits analyzed through this research are Shared Base Compensation dealing with stock option and restricted stock, Regular Base Compensation and Pension Plans. Shared based compensation gives a company’s employees the feel of equity ownership privileges. The purpose of this is...
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...WORKING PAPER SERIES DEFINED CONTRIBUTION PLANS, DEFINED BENEFIT PLANS, AND THE ACCUMULATION OF RETIREMENT WEALTH James Poterba Joshua Rauh Steven Venti David Wise Working Paper 12597 http://www.nber.org/papers/w12597 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 October 2006 We are extremely grateful to Tonja Bowen for extraordinary and tireless research assistance, to Gary Engelhardt and Anil Kumar for graciously providing us with tabulations from their HRS Defined Contribution Plan imputation algorithm, to Paul Bingley, Peter Diamond, Gary Engelhardt, Jon Gruber, Helena Stolyarova, and many seminar participants for helpful comments, and to the National Institute of Aging for research support under grant number P01 AG005842. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. © 2006 by James Poterba, Joshua Rauh, Steven Venti, and David Wise. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Defined Contribution Plans, Defined Benefit Plans, and the Accumulation of Retirement Wealth James Poterba, Joshua Rauh, Steven Venti, and David Wise NBER Working Paper No. 12597 October 2006 JEL No. J14,J26,J32 ABSTRACT The private pension structure in the United States, once dominated by defined benefit (DB) plans, is...
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...Introduction This research paper will analysis and discuss the question of whether the owner of a small business corporation is better off taking a salary or drawing a dividend. The salary vs. dividend question is common among small business corporation owners. Unfortunately, there is no one straight forward answer. There are two types of share holder owners who are eligible to extract funds from a corporation, shareholders that actively work within the corporation and shareholders that are not active within the corporation. The shareholder owner that works within the corporation is given the option of drawing a salary or dividend. The shareholder that own shares but does not actively work in corporation can draw dividends only. This paper will focus on the active owners of a small business corporation. The analysis will compare the methods and the impact on owners as well as the corporation using each approach. The mix method will also be analyzed and discussed. Basic tax concepts are based on the theory of integration. BDO defines Integration in The Tax Factor, they say that” A tax system is said to be integrated if the same amount of overall tax is paid when the income is earned indirectly through a corporation or directly by an individual.” (BDO Dunwoody, 2009, p.1) According to this theory there should be no difference to the individual regardless of the method chosen. But we know that in order for there to be integration the rates have to be perfectly...
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...Communicating and Collaborating Effectively This paper focuses on effective communication and collaboration methods for people with Visual, Kinesthetic, and Auditory learning styles and with NF, SF, and ST personality types from the Myers-Briggs model. Learning Styles Kinesthetic learners are those who learn through experiencing/doing things that help them learn better. We do better when we include hands-on communication and collaboration activities, such as building models, drawing diagrams, writing on a flipchart or white-board, working with visual aids, and taking notes. Auditory get better grades learners learn best through hearing, have strong language skills, a well-developed vocabulary, and follow spoken directions well. Oral presentations are crucial for understanding a subject and written text is hard to follow, but auditory learners can remember lectures and speeches. Personality Types Three of the four personality types from the Myers-Briggs Type Indicator (MBTI) model include NF, SF, and ST along with effective methods for communicating and collaborating effectively within a team. Intuitive Feeling (NF) ' To communicate effectively with NF personality types, team members should focus on the big picture and not spend too much time on specific details, especially if the context is not clear. Team members should be willing to discuss values, details, relationships, ideas, and impacts on people. NFs understand that their ideas and contributions are valued...
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...10.5923/j.ijfa.20130207.04 Role of Pension Funds in Financial Intermediation Ondabu Ibrahim Tirimba Finance and Economics Department, PhD Candidate Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya Abstract This paper aimed at discussing the various roles that pensions play in financial intermediat ion. Descriptive research design was adopted with the population being all the available literature on the online web as pertaining pension funds and also financial intermed iation. Using key word characters, the search in itially identified 50 journals and after a tentative scrutiny, 37 journals were selected in a random sampling manner in o rder to give the birth of this discussion paper. The key objective of this article was to discuss the role of pension funds in financial intermed iation. A mong the roles identified in this paper were; provision of a mechanis m for pooling of funds and subdivision of shares, provision of ways to transfer economic resources, provision of ways to manage uncertainty and control risk, provision of ways to manage uncertainty and control risk, provision of pricing informat ion and the provision of ways to deal with incentive problems. This paper provides practical insights into the roles of pension in financial intermed iation and thus highlighting the key importance of such pension funds into the success of any economy. This paper is one of the very first to recognize the key roles that pension funds play in the 21st century. Keywords...
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...INDIVIDUAL ASSIGNMENT THE ELDERLY POPULATION Niagara College NURS 1270 Amanda Sorrell The Elderly Population How old do you want to live? This is a good question considering that according to research done by Christiansen et. al. (2009), there has been a gain of about 30 years of life expectancy on average, in developed countries globally over the span of the 20th century and Canada is no exception. This increase in life expectancy is primarily due to improvements in health care; an understanding of how disease is transmitted and can be prevented, and a better understanding of the body and how to keep it healthy (Christiansen, et. al., 2009). However, it would seem this extra lease on life comes with some extra concerns as seen in the current overall health of the elderly population which is the vulnerable group I have chosen for this assignment. This is also the group I am working with during my clinical placement this term, which is another reason I have chosen it for this paper. The members within the elderly population, in part due to extended years of life, are a group that is at risk for diminished well-being and compromised health due to changes in the aging process both physically and mentally. Nutrition, mobility and personal safety also become issues in health maintenance as we age, as is the issue of poverty that affect our elderly who are living well past the age of retirement in Canada. When our elderly population are not able to maintain...
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...Motivational Individual Organizational Motivation Plan Introduction In the age of globalization, competition and information technology, the organizations are in a serious dilemma; on one hand the management is considering human capital development and on the other hand they are discussing downsizing and outsourcing. However, more and more companies are realizing that outsourcing and downsizing is not the solution; it destroys organizational culture and demotivates the existing workforce. They are recognizing that the key is to develop motivation plan for the existing workforce and turn them into valuable asset for the organization. Motivation is an internal force of human being that manifests itself through people's performance in the organization. Motivational theories work as measuring tools for those manifestations. For example, an important motivational theory is known as motives and needs. One major area of this theory talks about protestant work ethic (PWE), which represents the degree to which individuals place work at or near the center of their lives (Ambrose & Kulik, 1999, p. 3). Research have shown that an individual who scores high in PWE would more likely to visit the company's fitness center (Mudrack, 1992). In this case PWE is the factor that is used to determine the likelihood of someone going to the fitness center. However, it is important to understand that as organizations change, motivational theories also evolve. For example, a popular...
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...Public Disclosure Authorized WPS6107 Policy Research Working Paper 6107 Public Disclosure Authorized Financial Literacy around the World An Overview of the Evidence with Practical Suggestions for the Way Forward Lisa Xu Bilal Zia Public Disclosure Authorized Public Disclosure Authorized The World Bank Development Research Group Finance and Private Sector Development Team June 2012 Policy Research Working Paper 6107 Abstract Financial literacy programs are fast becoming a key ingredient in financial policy reform worldwide. Yet, what is financial literacy exactly and what do we know of its effectiveness? This paper collects insights from the literature thus far and summarizes global evidence on financial literacy, its correlates, and existing and upcoming causal investigations. The authors conclude with a synthesis of policy advice and practical suggestions for the way forward in this fast growing area of research. This paper is a product of the Finance and Private Sector Development Team, Development Research Group. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The author may be contacted at bzia@worldbank.org. The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development...
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