Public Corruption and Pension Underfunding in the American States

2021 ◽  
pp. 027507402199289
Author(s):  
Cheol Liu ◽  
John Mikesell ◽  
Tima T. Moldogaziev
Keyword(s):  
Pension Funds ◽  
Public Pension ◽  
Lower Percentage ◽  
Policy Makers ◽  
The Public ◽  
Empirical Estimates ◽  
American States ◽  
Investment Returns ◽  
Public Corruption ◽  
Pension Benefits

Unfunded public pension obligations represent a great challenge for policy makers in the American states. We posit that a part of pension underfunding relates to the level of public corruption. Empirical findings in the article show that funding ratios in public pension funds are inversely related to the incidence levels of corruption in the state, with other fiscal, political, and institutional covariates held constant. We show that this can happen through higher pension benefits, lower actuarially required contributions (ARCs), lower percentage of actual ARC contributions, and poorer investment outcomes. Based on empirical estimates, we find that a reduction of corruption by one standard deviation around the mean would permit the states to save on pension benefits by 10.24% annually (or US$1,894.64 per recipient), increase required ARC by 4.40%, increase actual ARC contributions by 8.46%, and improve investment returns by 4.72%. Therefore, policies to reduce public-sector corruption, or to improve the insulation of pension funds in relatively more corrupt environments, can make a significant contribution toward tackling the public pension underfunding crisis in the American states.

Fee Structures of Outsourced CIO and the Operational Efficiency

2019 ◽  
Vol 27 (3) ◽  
pp. 275-296
Author(s):  
Sun-Joong Yoon ◽  
Sangki Lee
Keyword(s):  
Fixed Ratio ◽  
Pension Funds ◽  
Operational Efficiency ◽  
Public Pension ◽  
Profit Margin ◽  
Public Funds ◽  
The Public ◽  
Fee Structure ◽  
Overall Performance ◽  
Fixed Fee

This study examines the problems associated with the management fee on outsourced CIOs in the public pension funds in Korea and proposes a better management fee structure. The main results of this study are summarized as follows. First, the outsourced CIO is likely to make a profit, provided that the management cost of the outsourced CIO is lower than a fixed ratio in a fee structure. Second, the profit margin of public funds increases as the fixed ratio decreases. Third, the outsourced CIOs can make a sure profit under the existence of the fixed fee only, regardless of the performance of public funds. In addition, the profit of outsourced CIOs increases as the level of delegation fees for sub-management firms decreases. However, such a fee structure may result in making worse the overall performance of funds ultimately. Fourth, it is necessary to introduce the performance-linked fee structure when the outsourced CIOs of public pension funds are selected. Such a fee structure can mitigate the possibility that the outsourced CIOs reassigns fund to sub-management firms with low management capacities, thereby lowering the fund’s overall performance.

Accounting for the rise in unfunded public pension liabilities: faulty counterfactuals and the allure of simple gain/loss summations

2016 ◽  
Vol 17 (1) ◽  
pp. 23-45 ◽  
Author(s):  
ROBERT M. COSTRELL
Keyword(s):  
Public Pension ◽  
Rate Of Return ◽  
Policy Makers ◽  
Funding Formula ◽  
Investment Returns ◽  
Funding Formulas ◽  
Gain Loss ◽  
Pension Liabilities ◽  
The Impact ◽  
Over Time

AbstractThis paper provides a methodological critique of an influential method for assessing the impact on the Unfunded Accrued Liabilities (UAL) of the gap between assumed and actual investment returns over extended periods, and offers a sound replacement. The method in question simply sums over time the components of the annual actuarial gain/loss report. This implicitly assumes that in the counterfactual exercise, the interest on the additional UAL is covered dollar-for-dollar by amortization. But under actual funding formulas amortization usually varies less than interest. This means there are large intertemporal interactions between the gap in investment returns and subsequent shortfalls between contributions and interest. Using the actual funding formula in the counterfactual can lead to much higher estimates of the UAL impact of the gap in investment returns because it does not assume away these interactions. This method can more accurately inform policy-makers, regarding the importance of cutting the assumed rate of return.

The Impact of the Public Expenditure Cuts Policy on the Labor Market in Vietnam

2012 ◽  
pp. 22-46
Author(s):  
Huong Nguyen Thi Lan ◽  
Toan Pham Ngoc
Keyword(s):  
Labor Market ◽  
Computable General Equilibrium ◽  
Impact Evaluation ◽  
Public Expenditure ◽  
Computable General Equilibrium Model ◽  
Living Standard ◽  
Input Output ◽  
Policy Makers ◽  
The Public ◽  
The Impact

The purpose of this study is to evaluate the impact of public expenditure cuts on employment and income to support policies for the development of the labor mar- ket. Impact evaluation is of interest for policy makers as well as researchers. This paper presents a method – that is based on a Computable General Equilibrium model – to analyse the impact of the public expenditure cuts policy on employment and income in industries and occupations in Vietnam using macro data, the Input output table, 2006, 2008 and the 2010 Vietnam Household Living Standard Survey.

Penguatan Wilayah Perbatasan: Studi Kasus Pulau Sebatik Kabupaten Nunukan Provinsi Kalimantan Timur

2015 ◽  
Vol 12 (2) ◽  
pp. 110
Author(s):  
Baskoro Wicaksono
Keyword(s):  
Central Government ◽  
Secondary Data ◽  
Well Being ◽  
Research Strategy ◽  
Management Policy ◽  
Infrastructure Development ◽  
Policy Makers ◽  
The Public ◽  
East Kalimantan ◽  
Border Policy

This study describes the border management policy conducted by the central government, provinceof East Kalimantan and Nunukan. Policies such as the establishment of regulatory, institutionalstrengthening, programs and infrastructure development. The policy is getting good responsefrom the elite and the masses. On the other hand policy makers have expectations of localcommunities border synergism Sebatik Island in order to build and develop the border areas so asto break the chain of dependence on Malaysia. The research was conducted in Sebatik Island,East Kalimantan province Nunukan with the formulation of the problem (a) what policies areoriented to maintain borders, (b) How is the public response to government policy, (c) What areyour expectations of policy makers in local communities to regional border. This study usedqualitative methods to phenomenological research strategy. Techniques of data collection in thisstudy using two ways, namely in-depth interviews and secondary data view Results indicate thatthe existing policy of both the central and provincial to district borders do not solve the problembecause it is made on the island of Sebatik with other border regions. The policy does not includelocal knowledge, where it is desperately needed by the people Sebatik. In addition to policies onprograms and infrastructure development of the center, the district adopted a policy of inactionagainst the illegal cross-border trade, which on the one hand against the rules but if enforced thenpeople can not perform economic activities that impact well-being. Policies like this gets a positiveresponse from the public. Expectations for the future border policy is to load local content orlocal knowledge.Keyword: border policy, local knowledge, dependent relationship

Partisipasi Masyarakat dalam Proses Kebijakan Daerah

2012 ◽  
Vol 10 (2) ◽  
pp. 163-177
Author(s):  
Abdullah Manshur
Keyword(s):  
Public Policy ◽  
Public Participation ◽  
Policy Evaluation ◽  
Policy Process ◽  
Policy Formulation ◽  
Problem Situation ◽  
Policy Cycle ◽  
Policy Makers ◽  
The Public ◽  
Policy Making Process

Public policy is a decision to deal with a particular problem situation, that identifies the objectives, principles, ways, and means to achieve them. The ability and understanding of policy makers in the policy-making process is very important for the realization of public policy of rapid, accurate and adequate. The product to suit the needs of the public policy, public participation in the policy process is needed in the policy cycle, from policy formulation to policy evaluation. This paper attempts to review the importance of community participation and other forms of public participation in the policy process, in particular, policy areas.

Deferring Receipt of Public Pension Benefits: A Tool for Flexibility

2018 ◽  
Author(s):  
Antoine Genest-Grégoire ◽  
Luc Godbout ◽  
René Beaudry ◽  
Bernard Morency
Keyword(s):  
Public Pension ◽  
Pension Benefits

scholarly journals Anxiety Level of University Students During COVID-19 in Saudi Arabia

2020 ◽  
Vol 11 ◽  
Author(s):  
Heba Bakr Khoshaim ◽  
Areej Al-Sukayt ◽  
Karuthan Chinna ◽  
Mohammad Nurunnabi ◽  
Sheela Sundarasen ◽  
...  
Keyword(s):  
Saudi Arabia ◽  
University Students ◽  
Anxiety Level ◽  
Educational Systems ◽  
Policy Makers ◽  
Level Of Education ◽  
Future Studies ◽  
The Public ◽  
Public Enemy ◽  
Anxiety Levels

COVID-19 is the worst pandemic of this millennium, and it is considered to be the “public enemy number one.” This catastrophe has changed the way we live in the blink of an eye. Not only has it threatened our existence and health status, but the damage associated with it could equally affect our economic, social, and educational systems. The focus of this study was on the anxiety level of university students during the COVID-19 pandemic in Saudi Arabia. The study was conducted between March and June 2020. A questionnaire was administered online, and 400 completed questionnaires were returned. In this study, the Zung self-rating anxiety scale was used to determine the anxiety levels among the respondents. The results indicated that about 35% of the students experienced moderate to extreme levels of anxiety. Anxiety was highly associated with age, sex, and level of education. These findings can enlighten government agencies and policy makers on the importance of making prompt, effective decisions to address students' anxiety during the COVID-19 pandemic. Researchers are encouraged to focus their future studies on how to develop strategies to boost students' resilience and enhance their adaptability skills for similar disasters in the future.

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