Format:
1 online resource (267 pages)
Edition:
1st ed.
ISBN:
9780521834117
,
9780511211829
Content:
This book presents an academic and a practical aspect on managing pension funds to clarify the global debate on social security. The authors establish the basic choices in designating any system to help policy makers develop the system that achieves their many objectives
Note:
Cover -- Half-title -- Title -- Copyright -- Contents -- Preface -- Acknowledgments -- Disclaimer -- A Tribute to Franco -- 1 A Primer on Pension Reform -- DEFINITION OF TERMS -- DEFINED BENEFIT PENSION PLANS -- DEFINED CONTRIBUTION PENSION PLANS -- FUNDING METHODS -- COMPARING DB AND DC PENSION PLANS -- INDIVIDUAL VERSUS POOLED ARRANGEMENTS -- EXAMPLES OF PENSION SYSTEMS -- Social Security System in the United States -- Chilean DCModel -- 401(K) Plans and Individual Retirement Accounts (IRAs) in the United States -- Italian Scheme (and Australian Superannuation Schemes) -- Mandatory Provident Funds -- Mexico -- Hungary -- SUMMARY -- 2 A Taxonomy of Pension Reform Issues -- INTRODUCTION -- SOCIAL SECURITY: DEFINITION, DESIRABLE PROPERTIES, AND DESIGN FEATURES -- SOCIAL SECURITY -- Macroproperties -- Microproperties -- DESIGN FEATURES -- THE "IDEAL MODEL" (COMPARISON WITH OTHER SCHEMES) -- THE IDEAL MODEL FOR SOCIAL SECURITY -- DESIRABLE PROPERTIES -- Comparison with Other Plans -- SUMMARY -- 3 An Evaluation of Pension Reforms -- THE CHILEAN REVOLUTION AND ITS CONQUEST OF LATIN AMERICA AND THE WORLD BANK -- COMPARING FUNDED SCHEMES WITH PAYGO SCHEMES -- OVERVIEW OF LONG-TERM CONTRIBUTIONS REQUIRED UNDER A PAYGO SYSTEM VERSUS A FUNDED SYSTEM -- The PAYGO Scheme -- The Funded Scheme -- FINANCING THE TRANSITION FROM PAYGO SCHEMES WITH DEFICITS -- MOVING FROM DB TO DC SOCIAL SECURITY SCHEMES -- THE PROBLEM OF MOVING TO "PRIVATE" MANAGEMENT OF FUNDS -- IMPORTANCE OF BENCHMARKS AND GOOD GOVERNANCE -- ABILITY OF PRIVATE MANAGERS TO BEAT PASSIVE BENCHMARKS -- IMPACT OF HIGH FEES -- REGULATION AND POLITICAL RISK -- RISK RELATING TO CONTRIBUTIONS -- RISK RELATING TO INVESTMENTS -- Fraud -- Poor Performance of Markets and Private Managers -- Absence of Good Advice on Asset Allocation or Private Managers -- Insufficient Choice
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Bad Regulation (Political Manipulation) -- SUMMARY -- 4 Welfare Costs of Defined Contribution Schemes -- THE IMPORTANCE OF TARGETS -- THE FRAMEWORK FOR ANALYSIS -- INDIVIDUAL PERSPECTIVE -- THE CONTRIBUTORY, FUNDED, DEFINED BENEFIT (CFDB) PLAN -- COMPARISON BETWEEN CFDB AND DC PLANS -- ASSUMPTIONS FOR THE SIMULATIONS -- ECONOMIC ENVIRONMENT -- ADDITIONAL INVESTMENT ASSUMPTIONS -- RESULTS OF THE ANALYSIS -- DEMOGRAPHIC CHANGES IN THE PLAN -- One Participant in the Plan -- Two Participants in the Plan -- Forty Participants in the Plan -- INVESTMENT REGIME CHANGES IN THE PLAN -- Increase in Volatility -- Diversification in the Investment Portfolio -- SUMMARY -- 5 The Transition from PAYGO to Funding with a Common Portfolio: Application to the United States -- THE PROBLEM OF TRANSITION FROM PAYGO TO PARTIAL OR FULL FUNDING: IS IT WORTH DOING, AND IF SO, HOW? -- A GENERALIZED TRANSITION MECHANISM -- DESCRIPTION OF THE BASIC TRANSITION MECHANISM -- A HYPOTHETICAL STATIONARY ECONOMY -- GENERALIZATIONS: ALTERNATIVE PATHS TO FULLY FUNDED EQUILIBRIUM -- MERGING TWO FUNDS INTO ONE -- NEED FOR REFORM AND PROPOSED SOLUTIONS FOR THE UNITED STATES -- THE SOCIAL SECURITY SYSTEM IN THE UNITED STATES: THE NEED FOR REFORM -- A REVIEW OF MAJOR PROPOSALS -- Clinton's Promise - A Missed Opportunity -- The Bush Administration Proposal -- Our Proposal -- Comparing Our Proposal with the Adjustment of the PAYGO System -- FINANCIAL ISSUES -- MANAGING THE TRUST FUND PORTFOLIO -- DESCRIPTION AND OPERATION OF THE SWAP CONTRACT -- A SIMULATION OF THE WORKING OF THE SINKING FUND -- HOW THE RATE OF RETURN AFFECTS THE MERITS OF ALTERNATIVE SCHEMES -- IMPACT OF THE INCREASE IN THE STOCK OF CAPITAL ON THE RATE OF RETURN -- SUMMARY -- 6 Social Security Reform in Spain -- REFORMING THE SOCIAL SECURITY SYSTEM IN SPAIN -- THE SOCIAL SECURITY SYSTEM IN SPAIN
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DESCRIPTION OF THE SOCIAL SECURITY SYSTEM -- Contributions -- Retirement Pensions -- EVOLUTION OF THE ECONOMICS OF THE SYSTEM UP TO THE YEAR 2000 -- SUMMARY OF RECENT DEMOGRAPHIC TRENDS IN SPAIN -- RECENT MACROECONOMIC AND LABOR TRENDS AND PROJECTIONS -- FINANCIAL PROJECTIONS FOR THE CONTRIBUTIVE SOCIAL SECURITY SYSTEM -- BASELINE SCENARIO AND THE NEED FOR REFORM -- PROPOSALS FOR REFORM -- MAINTAINING THE CURRENT PAYGO SYSTEM -- CONVERTING TO A MIXED PAYGO-FUNDED SYSTEM WITH PARTIAL PRIVATIZATION -- APPLICABILITY OF OUR REFORM PROPOSAL FOR SPAIN -- Combining an Investment Fund with Additional Reforms -- Potential Paths for Payroll Tax Cuts -- RESULTS OF DIFFERENT PROPOSALS -- SUMMARY -- IMPLEMENTING A MORE FLEXIBLE RETIREMENT AGE POLICY -- EXTENDING THE CONTRIBUTION YEARS USED TO CALCULATE THE PENSION -- STOCK MARKET -- GOVERNMENT DEBT -- CORPORATE DEBT -- 7 The "Two-Pension Fund" Theorem -- HELPING RETIREES ACHIEVE RETIREMENT OBJECTIVES -- THE OPTIMALITY OF GRRP DB PLANS FOR SOCIAL SECURITY -- THE THEORY OF CHOICE UNDER UNCERTAINTY IN FINANCE -- APPLICATIONS TO PENSION FINANCE -- APPLICATION TO PURE DC PLANS -- THE OPTIMAL INVESTMENT CHOICE MODEL -- THE CASE FOR MIXED PENSION SCHEMES -- CAPITAL MARKET AND INVESTMENT MANAGEMENT ISSUES -- SUMMARY -- 8 The Case for Mixed Systems and Variable Contributions: Improving the Performance of Pension Systems -- INTRODUCTION -- COMBINING PAYGO AND FUNDING THROUGH PARTIAL FUNDING -- THE CASE FOR VARIABLE CONTRIBUTIONS -- SIMULATIONS FOR SYSTEMS WITH VARIABLE CONTRIBUTIONS -- DESCRIPTION OF THE SIMULATION TECHNIQUE -- DATA ASSUMPTIONS -- DEMOGRAPHIC AND PENSION ASSUMPTIONS -- VARIABLE CONTRIBUTIONS - ESTABLISHING FORMAL RULES -- KEY PARAMETERS -- RESULTS -- SUMMARY -- CONCLUSION -- References -- Index
Additional Edition:
Print version Modigliani, Franco Rethinking Pension Reform Cambridge : Cambridge University Press,c2004 ISBN 9780521834117
Language:
English
Keywords:
Electronic books
URL:
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