“The Intergenerational Welfare State,” by Torben M. Andersen and Joydeep Bhattacharya (Working Paper No. 4359, August 2013, .pdf format, 47p.). Note: Links to the abstract and full-text can be found at:
August 28, 2013
CAAR – Center for Economic Studies/Ifo Institute for Economic Research (CESifo) [Munich, Bavaria, Germany] Working Paper – August 28, 2013
August 22, 2013
“2011 Annual Survey of Public Pensions: State- and Locally-Administered Defined Benefit Data,” By Erika Becker-Medina (G11-ASPP-SL, August 2013, .pdf format, 46p.).
August 20, 2013
“Firefighters pension schemes – current reforms,” by Djuna Thurley (SN06585, August 2013, .pdf format, 32p.).
August 8, 2013
“Automatic enrolment opt out rates: findings from research with large employers,” (August 2013, .pdf format, 8p.).
August 1, 2013
“2012 Census of Governments: Finance – Survey of Public Pensions: State-Administered Defined Benefit Data,” (July 2013, ASCII text (data) and .pdf (documentation) format). Note: A ‘Summary Report’ will be available soon.
July 30, 2013
July 25, 2013
“What’s choice got to do with it?” by Prue Cameron (Policy Brief No. 55, July 2013, .pdf format, 21p.).
CAAR – GESIS-Leibniz Institute for the Social Sciences (Mannheim/Koln/Bonn Germany) Data Release – July 25, 2013
GESIS has recently added the following dataset to its holdings:
- Old-Age Insurance in Germany 2007 (ASID ´07) (ZA5799)
July 23, 2013
“A single-tier pension: what does it really mean?” by Rowena Crawford, Soumaya Keynes and Gemma Tetlow (IFS Report R82, July 2013, .pdf format, 71p.).
July 19, 2013
“International Update, July 2013,” (July 2013, .pdf format, 4p.).
“Pension Fund Investment in Infrastructure: A Comparison between Australia and Canada,” by Georg Inderst and Raffaele Della Croce (OECD Working Papers on Finance, Insurance and Private Pensions, No. 32, July 2013, .pdf format, 54p.). Note: Links to the abstract and full-text can be found at:
July 18, 2013
“Pensioner benefits,” by Djuna Thurley, Steven Kennedy, and Richard Cracknell (SN06354, July 2013, .pdf format, 29p.).
July 17, 2013
Pension Trends has added three new chapters: Chapter 6: Private Pensions; Chapter 7: Private Pension Scheme Membership; and Chapter 8: Pension Contributions (2013 Edition, July 2013, .pdf and HTML format).
July 12, 2013
“Government Interventions to Support Future Retirement Incomes,” (July 2013, .pdf format, 50p.).
July 3, 2013
A. “The Funding of State and Local Pensions: 2012-2016,” by Alicia H. Munnell, Jean-Pierre Aubry, Josh Hurwitz and Madeline Medenica (SLP No. 32, July 2013, .pdf format, 15p.).
B. “The Impact of Interest Rates on the National Retirement Risk Index,” by Alicia H. Munnell, Anthony Webb and Rebecca Cannon Fraenkel (IB No. 13-9, June 2013, .pdf format, 7p.).
“Pension Fund Investment in Infrastructure: A Comparison between Australia and Canada,” by Georg Inderst and Raffaele Della Croce (OECD Working Papers On Finance, Insurance And Private Pensions No. 32, July 2013, .pdf format, 54p.).
Australian and Canadian pension funds have been pioneers in infrastructure investing since the early 1990s. They also have the highest asset allocation to infrastructure around the globe today. This paper compares and contrasts the experience of institutional investors in the two countries looking at factors such as infrastructure policies, the pension system, investment strategies and governance of pension funds. The ‘Canadian model’ and the ‘(new) Australian model’ of infrastructure pose a challenge to the ‘private equity model’, dominant in Europe and the USA. Important lessons can be learnt by both policy makers and investors.
June 28, 2013
“Summary of the Quarterly Survey of Public Pensions for 2013: 1st Quarter” (Jun. 27, 2013).
June 27, 2013
“Quarterly Survey of Public Pensions: State & Local Government – 2013 First Quarter,” (Microsoft Excel and .pdf format).
“Pension Credit: assessed income periods,” by Djuna Thurley (SN06677, June 2013, .pdf format, 11p.).
June 25, 2013
“Expanding social insurance coverage in urban China,” by John Giles, Dewen Wang, and Albert Park (WPS No. 6497, June 2013, .pdf and ASCII text format, 52p.). Note: Links to the abstract and full-text can be found at:
June 21, 2013
A. “Medicaid Insurance in Old Age,” by Mariacristina De Nardi, Eric French, and John Bailey Jones (w19151, June 2013, .pdf format, 50p.).
The old age provisions of the Medicaid program were designed to insure poor retirees against medical expenses. However, it is the rich who are most likely to live long and face expensive medical conditions when very old. We estimate a rich structural model of savings and endogenous medical spending with heterogeneous agents, and use it to compute the distribution of lifetime Medicaid transfers and Medicaid valuations across single retirees.
We find that retirees with high lifetime incomes can end up on Medicaid, and often value Medicaid’s insurance features the most, as they face a larger risk of catastrophic medical needs at old ages, and face the greatest consumption risk. Finally, our compensating differential calculations indicate that retirees value Medicaid insurance at more than its actuarial cost, but that most would value expansions of the current Medicaid program at less than cost.
B. “Donative Behavior at the End of Life,” by Jonathan Meer and Harvey S. Rosen (w19145, June 2013, .pdf format, 20p.).
A general finding in the empirical literature on charitable giving is that among older individuals, both the probability of giving and the conditional amount of donations decrease with age, ceteris paribus. In this paper, we use data on giving by alumni at an anonymous university to investigate end-of-life giving patterns. Our main finding is that taking into account the approach of death substantially changes the age-giving profile for the elderly-in one segment of the age distribution, the independent effect of an increase in age on giving actually changes from negative to positive.
We examine how the decline in giving as death approaches varies with the length of time that a given condition is likely to bring about death, and the individual’s age when he died. We find that for individuals who died from conditions that bring about death fairly quickly, there is little decline in giving as death approaches compared to those who died from other causes. Further, the decline in giving as death approaches is steeper for the elderly (for whom death is less likely to be a surprise) than for the relatively young. These findings suggest that our primary result, that failing to take into account the approach of death leads to biased inferences with respect to the age-giving profile, is not merely an artifact of some kind of nonlinearity in the relationship between age and giving.
C. “Informal Care and Caregiver’s Health,” by Young Kyung Do, Edward C. Norton, Sally Stearns, and Courtney H. Van Houtven (w19142, June 2013, .pdf format, 30p.).
This study aims to measure the causal effect of informal caregiving on the health and health care use of women who are caregivers, using instrumental variables. We use data from South Korea, where daughters and daughters-in-law are the prevalent source of caregivers for frail elderly parents and parents-in-law. A key insight of our instrumental variable approach is that having a parent-in-law with functional limitations increases the probability of providing informal care to that parent-in-law, but a parent-in-law’s functional limitation does not directly affect the daughter-in-law’s health. We compare results for the daughter-in-law and daughter samples to check the assumption of the excludability of the instruments for the daughter sample. Our results show that providing informal care has significant adverse effects along multiple dimensions of health for daughter-in-law and daughter caregivers in South Korea.
D. “Propagation and Smoothing of Shocks in Alternative Social Security Systems,” by Alan Auerbach, Lorenz Kueng, and Ronald Lee (w19137, June 2013, .pdf format, 41p.).
Even with well-developed capital markets, there is no private market mechanism for trading between current and future generations, so a potential role for public old-age pension systems is to spread economic and demographic shocks among different generations. This paper evaluates the smoothing and propagation of shocks of three pay-as-you-go public pension schemes, based on the actual U.S. and German systems, which vary in the extent to which they rely on tax adjustments versus benefit adjustments to provide annual cash-flow budget balance. Modifying the Auerbach-Kotlikoff (1987) dynamic general-equilibrium overlapping generations model to incorporate realistic patterns of fertility and mortality and shocks to productivity, fertility and mortality, we evaluate the effectiveness of the three public pension systems at spreading the effects of such shocks. We find that the systems, particularly those that rely to some extent on tax adjustments, are effective at spreading fertility and mortality shocks, but that this is not the case for productivity shocks, for which the pension systems actually tend to concentrate the economic impact. These results suggest that both system design and the source of shocks are important factors in determining the potential of public pension arrangements to spread the burden of shocks.
June 19, 2013
CAAR – National Center for Analysis of Longitudinal Data in Education Research [CALDER] Working Paper – June 19, 2013
“Which Plan to Choose? The Determinants of Pension System Choice for Public School Teachers,” by Dan Goldhaber and Cyrus Grout (Working Paper 98, June 2013, .pdf format, 53p.). Note: Links to the abstract and full-text can be found at:
June 18, 2013
A. “SSI Recipients by State and County, 2012,” (June 2013, .pdf and Excel format, 116p.).
B. “International Update, June 2013,” (June 2013, .pdf format, 5p.).
“Designing Better Pension Benefits Statements: Current Status, Best Practices and Insights from the Field of Judgment and Decisionmaking,” by Lauren A. Fleishman-Mayer, Angela A. Hung, Joanne K. Yoong, Jack Clift, and Caroline Tassot (WR-951, April 2013, .pdf format, 33p.). Note: Links to the abstract and full-text can be found at:
June 13, 2013
“Are Public Pensions Keeping Up with the Times?” by Richard W. Johnson, Matthew M. Chingos and Grover J. Whitehurst (June 2013, .pdf format, 58p.).
June 12, 2013
CAAR – US House Committee on Education and the Workforce, Subcommittee on Health, Employment, Labor, and Pensions Hearing Testimony – June 12, 2013
“Strengthening the Multiemployer Pension System: What Reforms Should Policymakers Consider?” a hearing held June 12, 2013 (witness statements available in .pdf format, full hearing can be viewed in Flash format, running time 1 hour 23 minutes).
June 10, 2013
A. “Reforming the Railroad Retirement System,” by Steven A. Sass (WP No. 2013-13, June 2013, .pdf format, 26p.). Note: Links to the abstract and full-text can be found at:
B. “How Do the Disabled Cope While Waiting for SSDI?” by Norma B. Coe, Stephan Lindner, Kendrew Wong and April Yanyuan Wu (WP No. 2013-12, June 2013, .pdf format, 38p.). Note: Links to the abstract and full-text can be found at:
June 4, 2013
“How Public Pension affects Elderly Labor Supply and Well-being: Evidence from India,” by Neeraj Kaushal (w19088, June 2013, .pdf format, 46p.).
We study the effect of a recent expansion in India’s National Old Age Pension Scheme on elderly well-being. Estimates suggest that public pension has a modestly negative effect on the employment of elderly/near elderly men with a primary or lower education but no effect of the employment of similar women. Pension raised family expenditures, lowering poverty, and the effect was smaller on families headed by illiterate persons suggesting lower pension coverage of this most disadvantaged group. Further, households spent most of the pension income on medical care and education. We find some weak evidence that pension raised longevity.
May 31, 2013
May 30, 2013
Ageing and Society (Vol. 33, No. 5, July 2013).
Journal of Pension Economics and Finance (Vol. 12, No. 3, July 2013).
May 28, 2013
Educational Gerontology (Vol. 39, No. 8, August 2013).
Journal of Parkinson’s Disease (Vol. 3, No. 2, 2013).
Rotman International Journal of Pension Management (Vol. 6, No. 1, Spring 2013).
May 20, 2013
International Update, May 2013 (May 2013, .pdf and HTML format).
May 16, 2013
A. “Pensions Bill 2013-14,” by Djuna Thurley (SN06634, May 2013, .pdf format, 12p.).
B. “State pension: 25 pence age addition,” by Djuna Thurley (SN00321, May 2013, .pdf format, 6p.).
May 13, 2013
“Policyholder Protection Schemes: Selected Considerations,” by (OECD Working Papers on Insurance and Private Pensions No. 31, May 2013, .pdf format, 64p.). Note: Links to the abstract and full-text can be found at:
May 10, 2013
“Is OPM Processing Federal Worker Pension Claims on Time?” a hearing held May 9, 2013 (witness statements available in .pdf format, full hearing can be viewed in Flash format, running time 1 hour 7 minutes).
May 8, 2013
“Single-Employer DB Plan Freezes,” (May 2013, .pdf format, 11p.).
May 2, 2013
“Adding Actuarial Information on Defined Benefit Pensions to the US National Accounts,” by Marshall Reinsdorf (April 2013, .pdf format, 24p.).
“The design and implementation of public pension systems in developing countries: Issues and options,” by David E. Bloom and Roddy McKinnon (PGDA Working Paper No. 102, May 2013, .pdf format, 24p.).
Developing countries are increasingly aware of the need to design and implement improvements in public systems for providing pensions to the elderly. Such systems may aim to smooth consumption and thus provide reliable income to older people, reduce poverty among the elderly, insure those no longer working against the risk of running out of funds, and promote equal treatment of men and women in retirement security even when lifetime earnings and projected average life expectancy may differ greatly. The increasing share of the elderly in the population of all countries makes implementation of sustainable pension systems both more urgent and more difficult. Planners must consider numerous options in pension system design and choose the combination of policies that will optimize coverage, benefits, and financing given a country’s demographics, history, practices regarding family support of the elderly, political system, extent of informal labour, and fiscal situation.
April 30, 2013
“Single-tier State Pension – women born between 1951 and 1953,” by Djuna Thurley (SN06620, April 2013, .pdf format, 8p.).
April 29, 2013
“Is there an optimal pension fund size? A scale-economy analysis of administrative and investment costs,” by Jacob Bikker (Working Paper 376, April 2013, .pdf format, 35p.). Note: Links to the abstract and full-text can be found at:
April 24, 2013
“Age-related personal allowance,” by Antony Seely and Dominic Webb (SN06158, April 2013, .pdf format, 21p.).
April 23, 2013
Pension Trends has added two new chapters: Chapter 9: Pension scheme funding and investment and Chapter 10: Saving for retirement (2013 Edition, April 2013, .pdf and HTML format).
April 22, 2013
A. “Financial Literacy and High-Cost Borrowing in the United States,” by Annamaria Lusardi and Carlo de Bassa Scheresberg (w18969, .pdf format, 41p.).
In this paper, we examine high-cost methods of borrowing in the United States, such as payday loans, pawn shops, auto title loans, refund anticipation loans, and rent-to-own shops, and offer a portrait of borrowers who use these methods. Considering a representative sample of more than 26,000 respondents, we find that about one in four Americans has used one of these methods in the past five years. Moreover, many young adults engage in high-cost borrowing: 34 percent of young respondents (aged 18–34) and 43 percent of young respondents with a high school degree have used one of these methods. Using well-tested questions to measure financial literacy, we document that most high-cost borrowers display very low levels of financial literacy, i.e., they lack numeracy and do not possess knowledge of basic financial concepts. Most importantly, we find that those who are more financially literate are much less likely to have engaged in high-cost borrowing. Our empirical work shows that it is not only the shocks inflicted by the financial crisis or the structure of the financial system but that the level of financial literacy also plays a role in explaining why so many individuals have made use of high-cost borrowing methods.
B. “Shrouded Costs of Government: The Political Economy of State and Local Public Pensions,” by Edward L. Glaeser and Giacomo A. M. Ponzetto (w18976, April 2013, .pdf format, 67p.).
Why are public-sector workers so heavily compensated with pensions and other non-pecuniary benefits? In this paper, we present a political economy model of shrouded compensation in which politicians compete for taxpayers’ and public employees’ votes by promising compensation packages, but some voters cannot evaluate every aspect of compensation. If pension packages are “shrouded,” meaning that public-sector workers better understand their value than ordinary taxpayers, then compensation will be inefficiently back-loaded. In equilibrium, the welfare of public-sector workers could be improved, holding total public sector costs constant, if they received higher wages and lower pensions. Central control over dispersed municipal pensions has two offsetting effects on pension generosity: more state-level media attention helps taxpayers better understand pension costs, which reduces pension generosity; but a larger share of public sector workers will live within the jurisdiction, which increases pension generosity. We discuss pension arrangements in two decentralized states (California and Pennsylvania) and two centralized states (Massachusetts and Ohio) and find that in these cases, centralization appears to have modestly reduced pension arrangements; but, as the model suggests, this finding is unlikely to be universal.
“Review of the Irish Pension System,” (April 2013, .pdf format, 157p.).
April 17, 2013
“Australia’s Retirement System: Strengths, Weaknesses, and Reforms,” by Julie Agnew (IB 13-5, April 2013, .pdf format, 10p.).
April 16, 2013
“Do Public Pension Obligations Affect State Funding Costs?” by Jean Burson, John B Carlson, Ozgur Emre Ergungor and Patricia Waiwood (WP 13-01, February 2013, .pdf format, 28p.). Note:
States’ unfunded pension obligations to their current and retired employees have exploded in recent years to levels that are estimated to be between $750 billion and $4.4 trillion. In theory, this massive debt should have implications for states’ ability to meet their financial obligations and a measurable impact on funding costs. Yet, we find no evidence that municipal bond markets are pricing the risks to states’ fiscal health arising from these large obligations.
April 8, 2013
“Private Pensions: Timely Action Needed to Address Impending Multiemployer Plan Insolvencies,” (GAO-13-240, March 2013, .pdf format, 66p.).
April 5, 2013
A. “The Single-tier State Pension: Part 1 of the draft Pensions Bill: Vol. 1,” (April 2013, HTML and .pdf format, 162p.).
B. “The Single-tier State Pension: Part 1 of the draft Pensions Bill: Vol. 2,” (April 2013, HTML and .pdf format, 65p.).
April 4, 2013
A. “Rasagiline Ameliorates Olfactory Deficits in an Alpha-Synuclein Mouse Model of Parkinson’s Disease,” by Geraldine H. Petit, Elijahu Berkovich, Mark Hickery, Pekka Kallunki, Karina Fog, Cheryl Fitzer-Attas, and Patrik Brundin (PLoS ONE 8(4): e60691. doi:10.1371/journal.pone.0060691, XML, HTML, and .pdf format, 13p.).
B. “Genetic Loci Associated with Alzheimer’s Disease and Cerebrospinal Fluid Biomarkers in a Finnish Case-Control Cohort,” by Lyzel S. Elias-Sonnenschein, Seppo Helisalmi, Teemu Natunen, Anette Hall, Teemu Paajanen, Sanna-Kaisa Herukka, Marjo Laitinen, Anne M. Remes, Anne M. Koivisto, Kari M. Mattila, Terho Lehtimaki, Frans R. J. Verhey, Pieter Jelle Visser, Hilkka Soininen, and Mikko Hiltunen (PLoS ONE 8(4): e59676. doi:10.1371/journal.pone.0059676, XML, HTML, and .pdf format, 9p.).
C. “Patients with Severe Radiographic Osteoarthritis Have a Better Prognosis in Physical Functioning after Hip and Knee Replacement: A Cohort-Study,” by J. Christiaan Keurentjes, Marta Fiocco, Cynthia So-Osman, Ron Onstenk, Ankie W. M. M. Koopman-Van Gemert, Ruud G. Poll, Herman M. Kroon, Thea P. M. Vliet Vlieland, and Rob G. Nelissen (PLoS ONE 8(4): e59500. doi:10.1371/journal.pone.0059500, XML, HTML, and .pdf format, 8p.).