Efficient Gain and Loss Amortization and Optimal Funding in Pension Plans
- Topics:
- Amortization
- Tags:
- Amortization,
- Benefits,
- City University,
- Gain,
- Human Resources,
- Loss,
- Payroll Solutions,
- Pension Plan
- Source:
- City University
FREE Registration is required
Overview: The paper considers efficient methods of amortizing actuarial gains and losses in defined-benefit pension plans. In the context of a simple model where asset gains and losses emerge as a consequence of random (independent and identically distributed) rates of investment return, it has been shown that direct amortization of such gains and losses leads to more variable funding levels and contribution rates, compared with an indirect and proportional form of amortization that "spreads" the gains and losses.
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 395KB | Date: Feb 2004 | Pages: 16
People who downloaded this item also downloaded
 |
The European Hotel Industry: Where Are the Risks Lodged |
|
Who Are The Investment Fiduciaries For A 401(k) Plan? (Part 1) |
