Retirement Guarantees in Voluntary Defined Contribution Plans
- Topics:
- Stock Options
- Source:
- Pension Research Council
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Overview: "Defined contribution plans are providing an increasing share of retirement income in a number of countries around the world. With this type of plan, concern has been raised as to the amount of risk that workers bear. One response has been to incorporate rate of return guarantees in the plan design. This article surveys the types of guarantees that have been provided in voluntary defined contribution plans around the world. The prevalence and types of guarantees differ considerably between voluntary and mandatory defined contribution plans. Voluntary plans that provide a rate of return guarantee often guarantee a fixed rate of return, while that is rarely done in mandatory plans. "
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Format: PDF | Size: 66KB | Date: Oct 2002 | Pages: 27




