...Pension plans offered at different organizations are different but typically follow one of two main types. The defined benefit plan and the defined contribution plan are the two main types of pension schemes. The focus is always on helping the people when they retire. The state of Florida could benefit from re-opening the defined benefit plan for the state employees. The organizations should focus on a plan and be forced to keep it open for employees as long as they are with that organization. These pension plans often become the subject of budget cuts to save the organizations money and the employees suffered because of it. The defined benefit plan had the potential to pay a specific amount of retirement income for life. It may be based on the formula that takes into account your salary and years of service with your organization. In most plans, both employee and employer contribute. The company is...
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...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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...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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...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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...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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...editors, S. P. Kothari, Tom Lys, and Jerry Zimmerman, for helpful comments and suggestions. We appreciate funding from the Financial Research Initiative, Graduate School of Business, Stanford University, and Center for Finance and Accounting Research at UNC-Chapel Hill, Stanford GSB Faculty Trust, and the Bank of America Research Fellowship. Corresponding author: William H. Beaver, Graduate School of Business, Stanford University, 518 Memorial Way, Stanford, CA 94305-5015, (650) 723-4409, fbeaver@leland.stanford.edu The Relevance of the Value Relevance Literature For Financial Accounting Standard Setting: Another View Abstract This paper explains that value relevance research assesses how well accounting amounts reflect information used by equity investors, and provides insights into questions of interest to standard setters. A primary focus of financial statements is equity investment. Other uses of financial statement information, such as contracting, do not diminish the importance of value relevance research. Value relevance questions can be addressed using extant valuation models. Value relevance studies address econometric issues that otherwise could limit inferences, and can accommodate and be used to study the implications of accounting conservatism. 1. Introduction This paper offers a view of the relevance of value relevance research for financial accounting standard setting that contrasts...
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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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...Policy Research Institute, Ministry of Finance, Japan, Public Policy Review, Vol.8, No.1, June 2012 45 Public Sector Accounting - An Interdisciplinary Field Involving Accounting, Economics, and Jurisprudence 1 Ryosuke Tao Research Fellow, Institute of Administrative Management Abstract Public sector accounting has recently been improved. Currently, there are requirements to disclose stock information in addition to the flow information presented in budget statements or accounts statements. Public sectors have prepared and disclosed their financial statements (including balance sheets and income statements) based on business accounting approaches. Moreover, as a matter of policy, the government tends to prepare and disclose cost information along with the financial statements for the individual ministries and governmental agencies. The objectives of clarifying the fiscal conditions in a state through the preparation and disclosure of financial statements are to fulfill the state’s accountability to its citizenry and market participants and to optimize and enhance the efficiency of its fiscal activities. Most importantly, the improved information should contribute to democratic decisions on public finance. A perspective different from the business accounting is that public sector accounting places more emphasis on inter-generational fairness. With respect to the inter-generational benefits and burdens, however, various factors must be considered, and the differences between...
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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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...Youth with Financial Literacy so that they can manage their own finances and securing their financial future. The present study is carried out with the objective to find out the determinants of financial literacy of the youth. The major determinants that influence the financial literacy are required to be sought in order to deal with the complexities of current financial markets and products. Data has been collected through primary sources by framing questionnaire answered by 100 respondents in Amritsar. Factor Analysis has been used to analyse the data. The analysis revealed five underlying dimensions namely Interest in Financial Issues, Financial Behaviour, Saving habits, Financial Attitude and Financial Awareness. The results of this paper will be helpful for making people more financially literate. Keywords : Financial Literacy, Youth, Factor Analysis INTRODUCTION Financial Literacy is the ability of individual to understand and analyze the required information necessary for making decisions with the awareness of likely financial consequences. It is basically a process in which skills, resources and...
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...them in your work place .Human resources is an increasingly broadening term with which an organization, or other human system describes the combination of traditionally administrative personnel functions with acquisition and application of skills, knowledge and experience, Employee Relations and resource planning at various levels. It is the responsibility of human resource managers in a corporate context to conduct these activities in an effective, legal, fair, and consistent manner. Human resource management serves these key functions., This paper Impact of Human Resource Management in Indian Banking Sector unfolds the key dimensions of HRM with a focus on ICICI Banks. This paper deals with the changing concepts of :- 1. Recruitment & Selection 2. Training and Development 3. Performance Evaluation and Management 4. Promotions. 5. Industrial and Employee Relations 6. Record keeping of all personal data. 7. Compensation, pensions, bonuses etc in liaison with Payroll 8. Confidential advice to internal customers in relation to problems at work development 9 Performance appraisal 10....
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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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...Introduction The objective of this research is to determine the convergence, divergence and cross-vergence of culture in IHRM, by looking at recruitment and selection in Nigeria as well as the Pension Scheme. It will also focus on the political, economic, social, technical and legal environment a number of factors that influence human resource policies and practice in Nigeria. International human resource management(IHRM) is the term used to refer to the instance where an organisation`s HRM entails managing employees in more than one nation .(Ngo et al 1998 cited in Lloyd and Hartel ,2004, pg60) .According to( Dowling et al, 2008) IHRM covers a wide range of human resource issues faces MNCs in different parts of their organizations additionally ,we include comparative analysis of HRM in different countries.(Capelli and Croker, 1996) argues that international human resource practices is a crucial factor in creating unique organisational competences ,in turn help companies differentiate their products and services and thus build competitive advantage. International HRM refers to relatively separate areas of practice and research (Dowling and Welch ,2004) HRM policies and practices are carried out within an economic, social, political and legal environment .Thus there is a need for considerable historical and cultural insights into local conditions to understand the processes, philosophies and problems of national models of HRM (Hofstede, 1993) .The indigenous Nigeria system is...
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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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