SOME ASPECTS OF THE PUBLIC/PRIVATE DICHOTOMY IN PENSION PLANS

1980 ◽  
Vol 33 (3) ◽  
pp. 381-389
Author(s):  
GERARD M. BRANNON
Keyword(s):  
Pension Plans ◽  
The Public

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.

La prohibición de realizar aportaciones a planes de pensiones de empleo en la Ley de Presupuestos Generales del Estado para el año 2012

2013 ◽  
pp. 53-80
Author(s):  
Mirari ERDAIDE GABIOLA ◽  
Arantza GONZÁLEZ LÓPEZ
Keyword(s):  
Public Sector ◽  
Public Administration ◽  
Basque Country ◽  
Pension Plans ◽  
The State ◽  
Public Employee ◽  
Autonomous Community ◽  
The Public ◽  
Insurance Policies ◽  
Pais Vasco

LABURPENA: Estatuko Aurrekontu Orokorren Legeak sektore publikoko herriadministrazio eta erakunde guztiei debekatu egiten die ekarpenik egitea enpleguko pentsio-planetan edo aseguru kolektiboko kontratuetan, erretiroagatiko estaldura jasotzen badute. Hain zuzen ere, debeku hori aztertzen da lan honetan. Azterketa Enplegatu Publikoaren Oinarrizko Estatutua eta EK-ko 149.1.13. nahiz 156. artikuluen inguruko doktrina konstituzionala oinarri hartuta egituratzen da, eta debeku haren konstituziokontrakotasuna ondorioztatzen du. Adibidez, Euskal Autonomia Erkidegoaren kasuan, debekuak Euskal Herriko Autonomia Estatutuko 10.4 artikulutik ondorioztatzen den berezko eskumen-esparru esklusiboan dauka eragina. RESUMEN: Este trabajo analiza la prohibición que impone la Ley de Presupuestos Generales del Estado a todas las Administraciones Públicas y entidades integrantes del sector público de realizar aportaciones a planes de pensiones de empleo o contratos de seguro colectivos que incluyan la cobertura de la contingencia de jubilación. El análisis se vertebra a partir del Estatuto Básico del Empleado Público y de la doctrina constitucional en torno a los artículos 149.1.13.ª CE y 156 CE, concluyendo en la inconstitucionalidad de aquella prohibición, que en la Comunidad Autónoma de Euskadi incide en el ámbito competencial propio y exclusivo que deriva del artículo 10.4 del Estatuto de Autonomía del País Vasco. ABSTRACT: This work analyzes the prohibition imposed by the State Budget’s Act to every public administration and entity part of the public sector to contribute to pension plans or collective insurance policies that cover the retirement contingency. This analysis has as essential structure the Basic Statute of the Public Employee and the constitutional doctrine regarding articles 149.1.13 and 156 of the Constitution and it concludes with the unconstitutionality of that prohibition which in the Autonomous Community of Euskadi has an impact on the very own and exclusive powers that derive from article 10.4 of the Statute of Autonomy of the Basque Country.

The trade-off between pension costs and salary expenditures in the public sector

2020 ◽  
Vol 20 (1) ◽  
pp. 151-168
Author(s):  
Dongwoo Kim ◽  
Cory Koedel ◽  
P. Brett Xiang
Keyword(s):  
Public Sector ◽  
Great Recession ◽  
Pension Plans ◽  
Teacher Salary ◽  
The Public ◽  
The Great Recession ◽  
Pension Costs ◽  
Crowd Out ◽  
Pension Contribution ◽  
Effect Heterogeneity

AbstractWe examine pension-cost crowd out of salary expenditures in the public sector using a 15-year data panel of state teacher pension plans spanning the Great Recession. While there is no evidence of salary crowd out prior to the Great Recession, there is a shift in the post-recession years such that a 1% (of salaries) increase in the annual required pension contribution corresponds to a decrease in total teacher salary expenditures of 0.24%. The effect operates through changes to the size of the teaching workforce, not changes to teacher wages. An explanation for the effect heterogeneity pre- and post-recession is that public employers are less able to shield the workforce from pension costs during times of fiscal stress. This problem is exacerbated because unlike other benefit costs, such as for health care, pension costs are countercyclical.

scholarly journals A DC Scheme to Maximize the Benefits of the Public Sector Employees Based on Behavioral Finance

2021 ◽  
Vol 3 (2) ◽  
pp. 44
Author(s):  
Yueling Zhao
Keyword(s):  
Behavioral Finance ◽  
Questionnaire Survey ◽  
Pension Plans ◽  
Risk Tolerance ◽  
Automatic Registration ◽  
Contribution Rate ◽  
The Public ◽  
Tolerance Level ◽  
Investment Choice ◽  
Public Sector Employees

This paper introduces DB and DC pension plans, reviews the literature of DC pension plans, and puts forward three application strategies: automatic registration default contribution rate and annual automatic growth contribution rate, the risk tolerance level of different employees was evaluated by questionnaire survey, and individual investment choice of employees with different risk tolerance.

scholarly journals Efficiency of the Funded Elements of the Pension System: International Practices

2020 ◽  
Vol 24 (5) ◽  
pp. 24-40
Author(s):  
I. K. Bitkina
Keyword(s):  
Pension System ◽  
Pension Plans ◽  
Theoretical Background ◽  
Economic Stability ◽  
Russian Science ◽  
The Public ◽  
Public Pension System ◽  
Russian Science Citation Index ◽  
National Capital ◽  
Country Analysis

The author summarizes key science theories of the funded pension system and its development. The aim of the article is to review and discuss the studies on the efficiency of the funded elements of the pension system from the perspective of international practices. The research methods included generalization; classification and comparative analysis of theoretical and methodological approaches to evaluating the efficiency of a pension system and its elements; abstraction, which allowed us to classify existing pension plans on the basis of the materials presented in the paper; as well as scientific and grouping methods. The theoretical background of the research is based on the scientific studies indexed in Scopus, Web of Science and RSCI (Russian science citation index) for the period 1981–2019. To organize the presented data this period was divided into four stages depending on the role of the funded elements in the public pension system of the reviewed countries. The results of the research are the systematization and classification of the studies under consideration. Cross-country analysis according to the selected criteria showed that distributive pension systems generally demonstrate a higher level of sustainability and efficiency, as well as are better at ensuring a decent standard of living for the population. The author concludes that in order to increase the efficiency of funded elements it is necessary to reduce their influence on the national economic stability; develop additional regulations for pension investment schemes; implement macroeconomic reforms aimed at the development of funded elements, which require a sustainable national capital market. The conclusions and results of the paper can be useful for further development of the Russian funded pension system and analytical work of the public and research organizations.

scholarly journals Motivation In Public Sector Unionized Organizations

2011 ◽  
Vol 9 (1) ◽  
Author(s):  
Martin D. Carrigan
Keyword(s):  
Public Sector ◽  
Pension Plans ◽  
Work Place ◽  
The Public ◽  
Public Sector Employees ◽  
Public Sector Unions ◽  
Substandard Performance ◽  
Sector Work ◽  
Public Sector Work

Developing creative ways to motivate unionized public sector employees is a growing concern.  The concept of motivation within the public sector work place is something that is generally understood but unfortunately not often practiced.  This paper looks deeper at the perception that public sector unions receive overly generous compensation and pension plans while their members deliver substandard performance.

scholarly journals State and Local Government Pension Funding on the Eve of the COVID-19 Recession

2020 ◽  
Vol 53 (1) ◽  
pp. 16-23
Author(s):  
John G. Kilgour
Keyword(s):  
Accounting Standards ◽  
Pension Plans ◽  
Public Pension ◽  
Asset Valuation ◽  
Governmental Accounting ◽  
The Public ◽  
State And Local Government ◽  
State And Local ◽  
Public Pension Plans ◽  
The Impact

This article examines the funding of public pension plans through 2019. Particular attention is paid to the impact of the Governmental Accounting Standards Board’s Standard No. 68. It addressed (1) discount rates, (2) amortization periods, (3) asset valuation and smoothing, and (4) the actuarial cost method used. The combined effect of these measures has been to increase the amount of public pension underfunding significantly. The actuarial funded ratio of the 126 plans in the Public Plans Database went from 101.9 in 2001 to 71.9 in 2019, on the eve of the COVID-19 recession. It will no doubt continue to worsen in the years ahead. The extent of that likely worsening is also explored.

Critical Questions for the Transition to Defined Contribution Pension Systems in the Public Sector

2011 ◽  
Vol 42 (4) ◽  
pp. 375-399 ◽  
Author(s):  
Howard Frank ◽  
Gerasimos (Jerry) Gianakis ◽  
Milena I. Neshkova
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Local Governments ◽  
Pension Plans ◽  
Political Support ◽  
Work Place ◽  
Defined Contribution ◽  
Potential Cost ◽  
The Public ◽  
Critical Questions

Unfunded liabilities of pension plans sponsored by state and local governments have drastically increased in the past few years. This article examines the potential challenges faced by states and municipalities in meeting their pension obligations and explores the cost and benefits of a switch from traditional defined benefit (DB) plans to defined contribution (DC) plans. The authors draw on the experience of the private sector to depict the potential cost savings for governments and the likely impacts on employees. The authors also identify several issues that are unique to governments if a shift in pension coverage plans is to occur. One of the attractions of public sector employment has been the generous benefits offered; the authors examine whether it will be harder to recruit people in the public sector if the government does not offer DB pensions. The authors explore equity issues and the effects of eroding political support for public sector DB systems in light of their demise in the private sector. The authors also address the issue of financial illiteracy in the work place and its impact on the human resource function in the context of DC plan implementation. Finally, the authors pose critical questions regarding DC plan rollout and its inherent difficulties.

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