Meeting The Communication Challenge

1998 ◽  
Vol 30 (6) ◽  
pp. 32-37
Author(s):  
Dennis R. Ackley
Keyword(s):  
Pension Plans ◽  
Financial Resources ◽  
Retirement Plans ◽  
New Approach ◽  
Retirement Plan ◽  
Communication Challenges ◽  
Communication Challenge

For the most part, account-based pension plans are not traditional long-service retirement plans. They are "when your service ends" plans, whether the employee leaves to retire or start a new job or vocation, and they are much like savings plans. They are also a new approach to helping employ-ees understand and accumulate their financial resources. Easier to explain to employees than more traditional pension plans, account-based plans still present stumbling blocks in terms of how to successfully introduce them to your orga-nization. Why the new plan is being introduced and what it is intended to do and not to do are the toughest and most important communication challenges that need to be met. Key communica-tion elements include proper naming of the bene-fit (don't call it a retirement plan) and demonstrating your organization's intended people strategy.

scholarly journals Worker Choices About Payouts in Public Pensions

2017 ◽  
Author(s):  
Robert L. Clark ◽  
Janet Raye Cowell
Keyword(s):  
Local Governments ◽  
Pension Plans ◽  
Policy Implications ◽  
Empirical Literature ◽  
Defined Benefit ◽  
Retirement Plans ◽  
The Public ◽  
State And Local ◽  
State Employees ◽  
State Pension

This chapter reviews available data on the annuity choices offered to retirees who participate in defined benefit (DB) plans. DB plans are most commonly offered by state and local governments to their employees, and information on annuity options is readily available. The authors examine all state pension plans that cover general state employees and teachers, and develop a table showing the similarities and differences across these approximately eighty separate state retirement plans. The authors determine the proportion of retirees selecting each of the annuity options. Where possible, annuity options in the public sector are compared to those offered by private sector employers. The chapter also reviews the empirical literature on who chooses the various annuity options offered in DB plans. Finally, the authors consider the policy implications of plan design and how this affects the types of annuities offered to retirees.

Retirement and Pensions in American Economic History

2018 ◽  
pp. 354-374
Author(s):  
Robert Clark ◽  
Lee A. Craig
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Economic History ◽  
Pension Plans ◽  
Federal State ◽  
Defined Benefit ◽  
Retirement Plans ◽  
The Us ◽  
Defined Benefit Plans ◽  
State And Local

The proportion of the US population that survives to retirement age has increased over time, as has the share of the older population that retires. Higher incomes at older ages explain the increase in the incidence of retirement. Pensions provide much of that income. In general, public-sector workers, especially military personnel, were covered by pensions before their private-sector counterparts, and coverage in the public sector remains more widespread, and generous, than it is in the private sector. Public-sector pension plans are more likely to be defined benefit plans than are private-sector plans. Many public-sector employers have promised their employees more in benefits than they have set aside to pay for those benefits. Estimates suggest that the federal, state, and local retirement plans currently in operation are underfunded by as much as $5 trillion.

Selection of Retirement Saving Plan for a Private-sector Employee in Pakistan

2020 ◽  
pp. 097282012093936
Author(s):  
Bushra Naqvi ◽  
Syed Kumail Abbas Rizvi ◽  
Arsalan Shahzad
Keyword(s):  
Private Sector ◽  
Asset Management ◽  
Yield Curve ◽  
Pension System ◽  
Assistant Professor ◽  
Pension Plans ◽  
Retirement Plans ◽  
Retirement Benefits ◽  
Private And Public ◽  
Sector Employee

Tehmina Khan, a 35-year-old, married mother of two, had been working as an assistant professor at a private sector university, University of Management and Information (UMI), School of Business. For the last few years, she had been saving for her retirement via a provident fund (PF) with her employer. The fund had been posting generous returns for years up until July 2018, when it posted earnings well below the inflation rate for the same period. Tehmina wanted to be financially self-sufficient in her post-retirement years and sought no financial dependence on her posterity for that matter. The meagre returns heightened her concerns about the future eventualities, so she had to decide if she should switch to another retirement plan. She needed to explore alternative retirement plans and identify how she could participate in a voluntary pension system (VPS) outside her employer’s PF. Also, if she decided to go ahead with VPS, she had to decide which asset management company(s) and portfolio manager(s) to allocate her savings to. The case comprehensively discusses the details about different retirement benefits and mechanisms and distinguishes aspects of private and public sector retirement plans in Pakistan. Most importantly, the case includes data on the performance of seventeen out of a total of nineteen pension plans operating in Pakistan. It also includes data on asset allocations of pension funds; overall macroeconomic, historical and stock market performances; and yield curve for the last 10 years.

Zakat on retirement and pension plans

2015 ◽  
Vol 8 (3) ◽  
pp. 274-290 ◽  
Author(s):  
Shafiqur Rahman
Keyword(s):  
Research Work ◽  
Pension Plan ◽  
Pension Plans ◽  
Mandatory Retirement ◽  
Pension Benefit ◽  
Investment Risk ◽  
Retirement Plans ◽  
Market Place ◽  
Content Type ◽  
Comprehensive Survey

Purpose – This paper aims to compare and contrast alternative pension plans in the market place and their status as zakatable wealth or property. These plans differ in terms of who is responsible for providing funds for pension benefit to the retirees upon retirement and who is responsible for bearing investment risk. Whether a pension plan is subject to zakat immediately or upon receipt at retirement depends on immediate accessibility to and ownership of the funds in the account. It makes no difference whether employer and/or the employee is (are) responsible for funding the plan and who bears the investment risk. Design/methodology/approach – Descriptive and analytical methods were used. Findings – There is consensus among Muslim jurists and shariah scholars that mandatory retirement plans offered as a part of compensation and benefit package for a job are subject to zakat when money is received upon retirement and non-mandatory plans offered as replacement for or supplement to employer-sponsored plans with voluntary employee participation are subject to zakat in each year of employment. Originality/value – There is no prior research work in the extant literature examining zakatability of alternative retirement plans offered in the US marketplace. This paper fills this void and provides a comprehensive survey and analysis of all available retirement plans and their treatment with respect to zakat.

scholarly journals Use of Advisors and Retirement Plan Performance

2020 ◽  
Vol 31 (2) ◽  
pp. 342-356
Author(s):  
Rui Yao ◽  
Weipeng Wu ◽  
Cody Mendenhall
Keyword(s):  
Portfolio Allocation ◽  
Objective Measures ◽  
Retirement Savings ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Retirement Plans ◽  
Cross Sectional ◽  
Retirement Plan ◽  
Research Gap

As defined contribution (DC) plans become more popular than defined benefit (DB) plans, American workers are increasingly responsible for their retirement savings. Because retirement plan participants' portfolio allocation is constrained by the available funds in the plan, the construction of a plan's investment menu has become extremely important. No research has evaluated fund selection in retirement plans or compared plans involving an advisor with self-directed plans. To fill this research gap, this study employs cross-sectional, nationwide data that include 5,570 retirement plans with 100 or more participants in 2013, 2014 and 2015. Results show that in most cases, using advisors is not related to plan performance. Plan sponsors should require advisors to periodically evaluate the performance of plans under their management using objective measures.

Pensions and Late-Career Teacher Retention

2021 ◽  
Vol 16 (1) ◽  
pp. 42-65
Author(s):  
Dongwoo Kim ◽  
Cory Koedel ◽  
Wei Kong ◽  
Shawn Ni ◽  
Michael Podgursky ◽  
...  
Keyword(s):  
Pension Plans ◽  
Public School Teachers ◽  
Retirement Plans ◽  
Qualified Teachers ◽  
Math Teachers ◽  
Long Run ◽  
Rule Changes ◽  
Incentive Policies ◽  
Low Costs ◽  
Career Teacher

Public school teachers retire much earlier than comparable professionals. Pension rule changes affecting new teachers can be used to close this gap in the long run, but any effects will not be observed for decades and the implications for workforce quality are unclear. This paper considers targeted incentive policies designed to deter retirement among senior, experienced high-need science and math teachers, as a policy to staff classrooms with qualified teachers and improve workforce quality. We use structural estimates from a dynamic retirement model to simulate the workforce effects of targeted late-career salary bonuses and deferred retirement plans (DROPs) using administrative data from Missouri. Although both policies produce additional teaching years at relatively low costs, by forcing teachers to reveal work–retirement preferences, DROPs generally yield incremental teacher years at lower cost per year. More generally, this work highlights the utility of using structural retirement models to analyze fiscal and workforce effects of changes to public sector pension plans, since the effects of pension rule changes cumulate over many years.

Financial Advice, Plan Choice, and Retirement Plan Satisfaction

2020 ◽  
pp. JFCP-18-00050
Author(s):  
Michael P. Ryan ◽  
Brenda J. Cude
Keyword(s):  
Risk Tolerance ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Retirement Plans ◽  
Retirement Plan ◽  
Defined Contribution Plans ◽  
Plan Choice ◽  
Public Sector Employees ◽  
Selection Of

Most private sector employees have access to defined contribution retirement plans while public sector employees often may choose defined benefit or defined contribution plans. This research utilized a survey of faculty to analyze retirement plan satisfaction. Advice from a financial planner was positively associated with satisfaction with portability. Retirement plan knowledge was negatively associated with satisfaction on the decision period. Selection of a defined benefit plan was positively related to four aspects of satisfaction and negatively related to regret. Financial planners assisting individuals who face such choices should acknowledge the decision's challenges and evaluate the client's level of retirement planning knowledge. Focusing on long-term goals and the client's investment and mobility risk tolerance may be helpful, especially after market corrections.

“But the Pension Fund Was Just SITTING There …”: The Politics of Teacher Retirement Plans

2010 ◽  
Vol 5 (4) ◽  
pp. 587-616 ◽  
Author(s):  
Frederick M. Hess ◽  
Juliet P. Squire
Keyword(s):  
Pension Plans ◽  
The Political ◽  
Retirement Plans ◽  
Public Officials ◽  
Short Term ◽  
Policy Makers ◽  
Political Incentives ◽  
Teacher Retirement ◽  
Retirement Systems

The tension at the heart of pension politics is the incentive to satisfy today's claimants in the here and now at the expense of long-term concerns. Teacher pensions, in particular, pose two challenges. The first is that political incentives invite irresponsible fiscal stewardship, as public officials make outsized short-term commitments to employees. The second is that incentives hinder modernization, as policy makers avoid the politically perilous task of altering plans ill suited to attracting talent in the contemporary labor market. The alignment of the political stars has helped some states and localities to address the first challenge, but far too few have demonstrated a willingness to tackle the second. We illustrate the political dynamics through discussions of pension plans in New Jersey, Oregon, and San Diego, California, and suggest several political strategies that could make pension challenges more tractable and encourage public officials to be responsible fiscal stewards or to revisit anachronistic retirement systems.

An Investigation of the Determinants of Investment Risk Behavior in Employer-Sponsored Retirement Plans

2002 ◽  
Vol 28 (1) ◽  
pp. 3-26 ◽  
Author(s):  
James H. Dulebohn
Keyword(s):  
Risk Behavior ◽  
Pension Plans ◽  
Investment Risk ◽  
Defined Contribution ◽  
Retirement Plans ◽  
Risk Propensity ◽  
University Employees ◽  
Investment Allocation ◽  
College And University ◽  
Risky Investment

This paper presents the results of an investigation of the determinants of investment risk behavior in employer-sponsored retirement plans. Using a field survey of 795 college and university employees, I examined the significance of demographic and attitudinal/dispositional variables on employees’ risk behavior in selecting among investment allocation options provided by defined contribution pension plans. The results identified primary causes of risky investment behavior including income, age, other retirement plan participation, self-efficacy, knowledge of investment principles and general risk propensity.

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