Post-Employment Benefits, Economics and Accounting: Moral Hazard and Frail Benefit Designs
- Topics:
- Counseling,
- Financial Regulations,
- Retirement
- Tags:
- Accounting,
- Benefit Plan,
- Benefits,
- Human Resources,
- Payroll Solutions,
- University Of Pennsylvania
- Source:
- University of Pennsylvania
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Overview: This paper uses economic principles to analyze alternative definitions for end-of-period liabilities under post-employment benefit plans; the candidates, using U.S. nomenclature, are the vested benefit obligation (VBO), the accumulated benefit obligation (ABO) and the projected benefit obligation (PBO). In competitive employment markets with rational contracting it is not possible to justify projected costing (PBO-based) for typical pay-related defined benefit plans.
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Format: PDF | Size: 312KB | Date: Nov 2004 | Pages: 58
