Regulating Single Employer Defined Benefit Pension Plans: A Modern Approach
- Topics:
- Accounting software,
- Insurance,
- Retirement
- Tags:
- Benefits,
- Pension Plan,
- Payroll Solutions,
- Human Resources,
- Financial Market,
- Financial Accounting,
- Financial,
- Finance,
- Defined Benefit Pension Plan,
- University Of Pennsylvania
- Source:
- University of Pennsylvania
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Overview: Recent financial market and plan termination experiences have exposed the shortcomings of existing funding, disclosure, and premium rules governing private single-employer defined benefit pension plans in the United States. These rules were designed to provide predictability for plan sponsors and administrators, by insulating pension plans from the realities of economic and financial market fluctuations. Unfortunately current practice often overlooks key financial principles that arguably should inform a responsible set of pension rules and the insurance system backing the plans. This paper outlines the key characteristics of pension plans needed to beneficially guide rule-making and offer examples drawn from proposed funding and premium rules.
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Format: PDF | Size: 72KB | Date: Aug 2005 | Pages: 30
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