Search engine for discovering works of Art, research articles, and books related to Art and Culture
Javascript must be enabled to continue!
A comparison of state university de®ned bene®t and de®ned contribution pension plans
View through CrossRef
This paper examines investment risk in comparing de®ned benefit (DB) and de®ned contribution (DC) plans by employing a Monte Carlo simulation. Using a bivariate normal distribution, two general types of risk are associated with a DC-plan. The ®rst is that not enough is being earned by an allocation rule to cover DB-plan out ̄ows. Secondly the portfolio may experience runs of losses that can't be overcome by waiting for a better year because the money runs out. The general result is that higher stock allocations allow the higher earning potential of stocks, even if the losses are occasionally experienced, to accumulate enough wealth to see a DC portfolio match the promised bene®ts of a DB-plan. Copyright 2001 Published by Elsevier Science Inc.
Title: A comparison of state university de®ned bene®t and de®ned contribution pension plans
Description:
This paper examines investment risk in comparing de®ned benefit (DB) and de®ned contribution (DC) plans by employing a Monte Carlo simulation.
Using a bivariate normal distribution, two general types of risk are associated with a DC-plan.
The ®rst is that not enough is being earned by an allocation rule to cover DB-plan out ̄ows.
Secondly the portfolio may experience runs of losses that can't be overcome by waiting for a better year because the money runs out.
The general result is that higher stock allocations allow the higher earning potential of stocks, even if the losses are occasionally experienced, to accumulate enough wealth to see a DC portfolio match the promised bene®ts of a DB-plan.
Copyright 2001 Published by Elsevier Science Inc.
.
Related Results
ACCOUNTING AND FINANCIAL REPORTING ISSUES OF PENSION FUNDS IN GEORGIA
ACCOUNTING AND FINANCIAL REPORTING ISSUES OF PENSION FUNDS IN GEORGIA
In Georgia, A pension fund includes pension contributions made by employers, employees, the government, as well as any investment returns, gains or losses accrued on pension assets...
PECULIARITIES OF THE FUNCTIONING OF NON-STATE PENSION FUNDS
PECULIARITIES OF THE FUNCTIONING OF NON-STATE PENSION FUNDS
The article is devoted to the research of peculiarities of the functioning of non-state pension provision. A theoretical analysis of methodical approaches to the organization of ac...
Pension Reforms in Viet Nam: Voices of Local Citizenry
Pension Reforms in Viet Nam: Voices of Local Citizenry
<p><b>Many developing countries have reformed their national pension systems in response to ageing populations and to increase pension scheme participation. The World B...
Study on the Spatial Distribution Characteristics and Influencing Factors of Pension Service Institutions in Shijiazhuang City of China
Study on the Spatial Distribution Characteristics and Influencing Factors of Pension Service Institutions in Shijiazhuang City of China
As the capital city of Hebei Province in China, Shijiazhuang faces the problem in the aging of the population that has never been occurred before. In order to optimize the allocati...
Private pension funds: pragmatics and problems of activity in Ukraine
Private pension funds: pragmatics and problems of activity in Ukraine
Introduction. Nowadays, the pension system in Ukraine is being transformed, which necessitates analytical research on the activities of private pension funds, namely, open-ended, i...
Essays on Defined Benefit Pension Plans in the USA
Essays on Defined Benefit Pension Plans in the USA
<p><b>This thesis contains three fundamental and empirical essays with the aim of finding the optimum full funding limit policy for the defined benefit (DB) pension pla...
THE NECESSITY OF INVESTING PENSION SAVINGS
THE NECESSITY OF INVESTING PENSION SAVINGS
In Georgia, the amount of state pension is determined by law and is assigned to men after reaching the age of 65 and women after reaching 60. Each person tries to have a happy and ...
Focus 28 - février 2022
Focus 28 - février 2022
Le défi de l’avenir de nos pensions, un moment occulté par la crise sanitaire, revient au cœur de l’actualité. Après des décennies marquées par une succession de réformes ponctuell...