Teacher Pension Workshop: Connecting Evidence-Based Research to Pension Reform: How Much Do Teachers Value Deferred Compensation? Evidence from Defined Contribution Rate Choices

Introduction. In order to further move towards the European Economic Area, Ukraine needs to take pension reform measures. Pension provision in Ukraine has to be profoundly reformed in terms of regulatory and legislative framework for calculating pensions in Ukraine. What is of particular importance is improving Ukraine’s laws and methods for calculation and pension payments to citizens. Another important focus of the reform agenda is to define categories of people eligible for old-age pensions, disability pensions, and long- service pensions. Purpose. The purpose of the article is to interpret the regulatory and legislative framework for calculating pensions in Ukraine; to describe changes in pension payments before and after the reform was implemented; to highlight ways of improving pension payments in terms of regulations and legislation. Methods. The research methods used in the article include: analysis; comparison; historical method to consider the legislative framework for calculating pensions at different periods of time. Results. The regulatory and legal framework for calculating pensions in Ukraine is a complex system comprising the Constitution of Ukraine, the Laws of Ukraine, the Labour Code of Ukraine, decrees, Presidential decrees, International agreements and laws of the USSR. Some of these regulations and legislation need to be revised and amended in order to bring them in line with contemporary practices and modern standards. It is claimed that since 2017, Ukraine’s government has been implementing the pension reform aimed at relieving the pressure on the working-age population and improving living standards for retired people. In particular, the retirement age has been raised, eligibility criteria for preferential pensions have been revised, and methods for calculating pensions have been changed. The Ministry of Social Policy of Ukraine argues that the new pension reform is expected to enhance social, labour and post-retirement relations, to increase tax revenues through reporting real salaries, to develop a framework of social justice when calculating pensions. The author points out that the regulatory and legislative framework for calculating pensions is outdated at this stage and it requires changes. The considered changes are as follows: the establishment of a working group for entitlement of preferential pensions; the introduction of wage differentials by industries and occupations; the increase of pensions in line with inflation and age; the implementation of notional defined contribution pension system; the introduction of the new Labour Code and Pension Code, which are expected to regulate labour and post-retirement relations and meet modern standards. It is also indicated that continued employment should be enforced by legislation and a system of granting advantages and social security benefits to those who retire later needs to be developed. In terms of legislation, sufficient regard should be given to non-state pension schemes, defined contribution pension systems, and the principle of fairness when it comes to pension entitlements. It is also crucial to adjust pension amounts and retirement age to align with the sustainability ratio and the average life expectancy. Discussion. Further research of regulatory and legal framework for calculating pensions in Ukraine should be focused on the development of the Pension Code and improvement of the existing laws relative to pension calculation and payment. The author also suggests differentiating minimum wages by industries and regions and countering the illicit labour market and campaigning against payments ‘in envelope’, because official wages are the basis for calculating pensions.

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Retirement concerns and financial literacy in Brunei

International Journal of Sociology and Social Policy ◽

10.1108/ijssp-09-2019-0193 ◽

2020 ◽

Vol 40 (3/4) ◽

pp. 342-365

Author(s):

Pg Md Hasnol Alwee Pg Hj Md Salleh ◽

Roslee Baha

Keyword(s):

Financial Literacy ◽

Home Ownership ◽

Pension Reform ◽

Defined Benefit ◽

Defined Contribution ◽

Content Type ◽

Financial Advice ◽

Knowing How ◽

Retirement Plan

PurposeDespite the inclusion of financial literacy in retirement studies, there are limited studies that look into retirement concerns and how financial literacy plays a role in managing retirement concerns. Understanding retirement concerns prior to retirement is important given how it affects retirement satisfaction. Therefore, this paper aims at assessing the retirement concerns in Brunei and the role of financial literacy in managing those concerns.Design/methodology/approach700 government employees, divided into three groups, were interviewed: Defined Contribution Plan (DCP) employees retiring in the next 10–15 years, DCP employees retiring in 20–30 years' time and Defined Benefit Plan (DBP) employees retiring in the next 10 years. Pearson's chi-square tests and logistic regressions were used to ascertain significant relationships.FindingsThe results indicate the relatively younger DCP group is more likely to be financially literate compared to senior groups however, these respondents are more inclined to focus on private home ownership at this juncture. The findings also indicate the importance of knowing how much to save for retirement towards determining those with an additional retirement plan, and consequently reducing their retirement concerns. The value of financial advice is also significant in determining the amount to save for retirement and in possessing an additional retirement plan.Research limitations/implicationsResults cannot be generalised to the population, as purposive sampling was utilised due to the absence of a population frame.Practical implicationsThe implications of the paper may provide value to policymakers to consider approaches to enhance the quality of financial advice and provide sound knowledge in computing the amount needed for retirement. Understanding the role of financial literacy vis-à-vis retirement concerns may also be useful for neighbouring countries with similar socio-cultural aspects such as Malaysia.Originality/valueGiven the limited research on retirement concerns and financial literacy, this paper is one of the few to emphasise on the importance of knowing how much is needed to save for retirement, in relation to retirement concerns. This may also be useful in other countries/communities with similar retirement context such as those with relatively low retirement planning or with similar retirement schemes. Further, with the 1993 pension reform, there is no known publication on retirement concerns and expectations in Brunei. Left unchecked, it may lead to poverty in old age and/or dependency on welfare institutions and family support.

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Contribution volatility and public pension reform

Journal of Pension Economics and Finance ◽

10.1017/s1474747217000129 ◽

2017 ◽

Vol 17 (4) ◽

pp. 513-533 ◽

Cited By ~ 4

Author(s):

TRAVIS ST. CLAIR ◽

JUAN PABLO MARTINEZ GUZMAN

Keyword(s):

Local Governments ◽

Pension System ◽

Pension Reform ◽

Pension Plans ◽

Fiscal Sustainability ◽

Economic Downturn ◽

Defined Benefit ◽

Defined Contribution ◽

Unfunded Liabilities

AbstractIn the wake of the economic downturn of 2008–2009, researchers and policymakers have focused considerable attention on the extent of unfunded liabilities in US public sector pension plans and the implications for the long term fiscal sustainability of state and local governments. In response to the growth in liabilities, many states have introduced legislation that cuts back on defined benefit (DB) plan commitments, in some cases even shifting the pension system from a DB to a defined contribution or hybrid plan. This paper explores the factors that have led states to engage in pension reform, focusing particular attention on one factor that has only recently gained attention in the research literature: contribution volatility. While unfunded liabilities have significant long-term solvency implications, in the short term fluctuations in the amount of required contributions pose substantial difficulties for the ability of plan sponsors to balance budgets and engage in strategic planning. We begin by quantifying the volatility in the required contributions US states were expected to make between 2001 and 2013 and comparing the volatility of pension spending to other relevant tax and spending measures. Next, we describe the various types of pension reforms that states have implemented and examine the fiscal pressures facing those states that have engaged in reform. States with greater fluctuations in their required payments have been more likely to reduce benefits and increase employee contributions; they have also been more likely to institute these reforms sooner.

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Service quality at the London 2012 games – a paralympics athletes survey

International Journal of Quality & Reliability Management ◽

10.1108/ijqrm-05-2014-0058 ◽

2016 ◽

Vol 33 (2) ◽

pp. 142-159 ◽

Cited By ~ 7

Author(s):

David Bamford ◽

Benjamin Dehe

Keyword(s):

Service Quality ◽

Single Case ◽

The Body ◽

Evidence Based ◽

Sporting Events ◽

Defined Contribution ◽

Content Type ◽

London 2012 ◽

And Performance ◽

Mega Event

Purpose – The purpose of this paper is to report on aspects of service quality at the London 2012 Paralympic Games, from a rather unusual perspective, the athletes. To date there has been little evidence captured about athlete’s satisfaction at sporting events, and specifically about their perceptions of the service quality provided. Design/methodology/approach – Unique “full” access to the London 2012 Paralympics allowed to the collection of data directly from the athletes. The study reports the questionnaire findings from a sample of 250 respondents. Findings – From this study an operational assessment and performance framework has been generated composed of ten criteria and 73 items or sub-criteria, which can be used as a benchmarking tool to plane, design and compare future sport mega-event. Moreover, the study evidence based the high quality of the 2012 Paralympics Games, as he athletes rated, on a five point Likert scale, 64 items in the “very satisfied” category, a very positive set of feedback for the Games organisers. Research limitations/implications – The methodology applied was appropriate, generating data to facilitate discussion and draw specific conclusions from. A perceived limitation is the single case approach; however, this can be enough to add to the body of knowledge where very little evidence has been captured so far and where the objectives were to explore the Paralympics games service quality and performance. Practical implications – This research provides a tangible evidence base to support future sport event decision makers, planners and designers in this highly complex “arena”. In any system there are always areas for improvement, these are highlighted within the paper for further investigation. Originality/value – This is the first paper to identify and synthesize aspects of sport mega event service quality from the athletes viewpoint and informs how well designed, organised and managed the London 2012 Games were from a primary user perspective. The paper makes a defined contribution by developing evidence based recommendations for this important yet under researched area.

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