PENSIONS/title> </head> <body> ______________________________ <div style="direction:ltr"> <wbr>______________________________<wbr>_____<br/> <br/> SOCIAL SCIENCE RESEARCH NETWORK<br/> <br/> EMPLOYEE BENEFITS, COMPENSATION & PENSION LAW ABSTRACTS<br/> Sponsored by Pension Governance, LLC<br/> Vol. 8, No. 20: June 1, 2007<br/> <br/> Editor: PAMELA J. PERUN<br/> Policy Director, Aspen Institute - Initiative on<br/> Financial Security<br/> <a href="mailto:PAMELA@PLANETNOW.COM">PAMELA@PLANETNOW.COM</a><br/> ______________________________<wbr>______________________________<wbr>_____<br/> <br/> BROWSE all abstracts in this subject:<br/> <a href="http://www.ssrn.com/link/benefits-compensation-pension-law.html" target="_blank">http://www.ssrn.com/link<wbr>/benefits-compensation-pension<wbr>-law.html</a><br/> <br/> SEARCH entire eLibrary at: <a href="http://ssrn.com/search" target="_blank">http://ssrn.com/search</a><br/> <br/> If this document is misaligned, please set type face to a<br/> non-proportional font such as Courier 10.<br/> ______________________________<wbr>______________________________<wbr>_____<br/> <br/> Pension Governance, LLC is an independent information and<br/> business consulting services and research/analysis company for<br/> the pension community. News, interviews, white papers, surveys,<br/> training and industry events provide pension decision-makers,<br/> their attorneys, actuaries, auditors, consultants, money managers<br/> and third party administrators with information that is<br/> straightforward and created with investment fiduciary best<br/> practices in mind. To learn more, please visit<br/> <a href="http://www.pensiongovernance.com/" target="_blank">http://www.pensiongovernance<wbr>.com</a>,<br/> <a href="http://www.pensionriskmatters.com/" target="_blank">http://www.pensionriskmatters<wbr>.com</a> (blog) and<br/> <a href="http://www.pensionlitigationdata.com/" target="_blank">http://www.pensionlitigationda<wbr>ta.com</a>.<br/> <br/> Topic of This Issue:<br/> Pensions<br/> ______________________________<wbr>______________________________<wbr>_____<br/> <br/> T A B L E O F C O N T E N T S<br/> <br/> "The Retirement System in Transition: The 2007 Retirement<br/> Confidence Survey"<br/> RUTH HELMAN<br/> Mathew Greenwald & Associates<br/> JACK VANDERHEI<br/> Temple University - Risk Management & Insurance &<br/> Actuarial Science, Employee Benefit Research Institute<br/> (EBRI)<br/> CRAIG COPELAND<br/> Employee Benefit Research Institute (EBRI)<br/> <br/> "Sweeping Changes for Pension Plan Funding and Other Rules, Part<br/> 1 - Defined Benefit Plans"<br/> STANLEY BAUM<br/> Dechert LLP<br/> <br/> "Financial Preparation for Retirement: Factors Affecting<br/> Retirement Preparation Through Employer Sponsored Retirement<br/> Plans"<br/> KABIR M. HASSAN<br/> University of New Orleans<br/> <br/> "Implicit Compensation for Career Employees in Public Defined<br/> Benefit Pension Plans: The Colorado PERA Case"<br/> MICHAEL V. MANNINO<br/> University of Colorado at Denver and Health Sciences<br/> Center<br/> ELIZABETH S. COOPERMAN<br/> University of Colorado at Denver - Department of Finance<br/> <br/> "Economic Well-Being at Older Ages: Income- and Consumption-Based<br/> Poverty Measures in the HRS"<br/> MICHAEL D. HURD<br/> The RAND Corporation, State University of New York -<br/> Department of Economics, National Bureau of Economic<br/> Research (NBER)<br/> SUSANN ROHWEDDER<br/> The RAND Corporation<br/> ______________________________<wbr>______________________________<wbr>_____<br/> <br/> "The Retirement System in Transition: The 2007 Retirement<br/> Confidence Survey"<br/> EBRI Issue Brief, No. 304, April 2007<br/> <br/> <br/> Contact: RUTH HELMAN<br/> Mathew Greenwald & Associates<br/> Email: <a href="mailto:RUTHHELMAN@GREENWALDRESEARCH.COM">RUTHHELMAN@GREENWALDRESEARCH<wbr>.COM</a><br/> Auth-Page: <a href="http://ssrn.com/author=263460" target="_blank">http://ssrn.com/author=263460</a><br/> <br/> Co-Author: JACK VANDERHEI<br/> Temple University - Risk Management & Insurance &<br/> Actuarial Science, Employee Benefit Research<br/> Institute (EBRI)<br/> Email: <a href="mailto:TEMPLE@VANDERHEI.COM">TEMPLE@VANDERHEI.COM</a><br/> Auth-Page: <a href="http://ssrn.com/author=265706" target="_blank">http://ssrn.com/author=265706</a><br/> <br/> Co-Author: CRAIG COPELAND<br/> Employee Benefit Research Institute (EBRI)<br/> Email: <a href="mailto:COPELAND@EBRI.ORG">COPELAND@EBRI.ORG</a><br/> Auth-Page: <a href="http://ssrn.com/author=255137" target="_blank">http://ssrn.com/author=255137</a><br/> <br/> Full Text: <a href="http://ssrn.com/abstract=981012" target="_blank">http://ssrn.com/abstract<wbr>=981012</a><br/> <br/> ABSTRACT: This paper presents key findings from the 17th annual<br/> Retirement Confidence Survey (RCS), a survey that gauges the<br/> views and attitudes of working-age and retired Americans<br/> regarding retirement, their preparations for retirement, their<br/> confidence with regard to various aspects of retirement, and<br/> related issues. The survey contains a core set of questions that<br/> is asked annually, allowing key attitudes and self-reported<br/> behavior patterns to be tracked over time. It also strives to be<br/> timely by covering issues that are of current interest to<br/> policymakers, including, this year, questions about retirement<br/> plan changes, the use of investment advice and the Internet, and<br/> retiree health care. Findings from the 2007 RCS suggest that<br/> American workers may be slow to recognize how the U.S. retirement<br/> system is changing, and those who are aware of these changes may<br/> not be adapting to them in ways that are likely to secure them a<br/> comfortable retirement. The survey was conducted in January 2007<br/> through 21-minute telephone interviews with 1,252 individuals<br/> (1,001 workers and 251 retirees) age 25 and older in the United<br/> States. The RCS was co-sponsored by the Employee Benefit Research<br/> Institute (EBRI), a private, nonprofit, nonpartisan public policy<br/> research organization; and Mathew Greenwald & Associates, Inc., a<br/> Washington, DC-based market research firm.<br/> ______________________________<br/> <br/> "Sweeping Changes for Pension Plan Funding and Other Rules, Part<br/> 1 - Defined Benefit Plans"<br/> Journal of Taxation, Vol. 105, p. 208, October 2006<br/> <br/> <br/> Contact: STANLEY BAUM<br/> Dechert LLP<br/> Email: <a href="mailto:stanley.baum@dechert.com">stanley.baum@dechert.com</a><br/> Auth-Page: <a href="http://ssrn.com/author=493584" target="_blank">http://ssrn.com/author=493584</a><br/> <br/> Abstract: <a href="http://ssrn.com/abstract=987598" target="_blank">http://ssrn.com/abstract<wbr>=987598</a><br/> <br/> ABSTRACT: The Pension Protection Act of 2006 (the "Act") makes<br/> sweeping and comprehensive changes to the rules under which<br/> defined benefit pension plans are funded. The new rules<br/> completely change the way in which the annual minimum required<br/> contributions are determined. The Act makes a number of other<br/> significant and related changes to the rules pertaining to<br/> defined benefit pension plans, such as (i) changing the way in<br/> which the annual maximum tax-deductible contributions are<br/> determined, (ii) applying new interest rate assumptions in<br/> calculating lump sums, (iii) imposing restrictions on benefit<br/> accruals under, certain benefits payable by and amendments to<br/> underfunded plans, (iv) prospective clarification of the rules<br/> for cash balance plans, and (v) requiring additional reporting<br/> and disclosure by employers. Included in the Act are many changes<br/> which apply to defined benefit multiemployer pension plans. The<br/> article provides an early look at the provisions of the Act which<br/> apply to defined benefit plans.<br/> ______________________________<br/> <br/> "Financial Preparation for Retirement: Factors Affecting<br/> Retirement Preparation Through Employer Sponsored Retirement<br/> Plans"<br/> NFI Working Paper No. 2007-WP-09<br/> <br/> <br/> Contact: KABIR M. HASSAN<br/> University of New Orleans<br/> Email: <a href="mailto:Kabir_Hassan@uno.edu">Kabir_Hassan@uno.edu</a><br/> Auth-Page: <a href="http://ssrn.com/author=596834" target="_blank">http://ssrn.com/author=596834</a><br/> <br/> Full Text: <a href="http://ssrn.com/abstract=985671" target="_blank">http://ssrn.com/abstract<wbr>=985671</a><br/> <br/> ABSTRACT: This study examines the effect of various social,<br/> demographic, and economic variables on retirement preparation and<br/> discusses ways in which policy makers can use this information to<br/> mandate legislation that will motivate individuals to save for<br/> retirement. Using data from the Survey of Consumer Finances,<br/> probit analysis indicates that respondents' income and job tenure<br/> have significant positive effects on predicting employer<br/> sponsored pension plan eligibility. Conversely, the findings do<br/> not support the assumption that the probability of pension plan<br/> eligibility increases with age and education levels. In addition,<br/> we did not find race, marital status or home ownership to be<br/> significant factors in pension plan eligibility.<br/> <br/> Regarding contributions to pension plans, the findings indicate<br/> that income, education and net worth have significant positive<br/> effects on whether or not an individual is contributing to a<br/> plan. Conversely, the findings regarding household size were<br/> significant and negative regarding the contribution decision.<br/> Race, health, and an individual's savings habits do not appear to<br/> have significant effects on the decision to contribute to<br/> employer sponsored pension plans. Additional findings; however,<br/> indicate that individuals who report the reason for saving is<br/> retirement are more likely to contribute to their pension plans.<br/> Finally, the results regarding future expectations for the<br/> economy were insignificant in relation to whether or not an<br/> individual was contributing to his or her pension plan.<br/> <br/> The findings may be used to aid policy makers in targeting<br/> particular groups of individuals to motivate them to contribute<br/> to their company sponsored retirement plans. Policies that<br/> encourage retirement planning education programs as well as tax<br/> credits on contributions made by individuals in the lower and<br/> middle income tax brackets are just a couple of suggestions that<br/> could motivate specific groups of individuals to save for<br/> retirement.<br/> ______________________________<br/> <br/> "Implicit Compensation for Career Employees in Public Defined<br/> Benefit Pension Plans: The Colorado PERA Case"<br/> <br/> Author: MICHAEL V. MANNINO<br/> University of Colorado at Denver and Health<br/> Sciences Center<br/> Email: <a href="mailto:Michael.Mannino@cudenver.edu">Michael.Mannino@cudenver.edu</a><br/> Auth-Page: <a href="http://ssrn.com/author=810349" target="_blank">http://ssrn.com/author=810349</a><br/> <br/> Contact: ELIZABETH S. COOPERMAN<br/> University of Colorado at Denver - Department of<br/> Finance<br/> Email: <a href="mailto:Elizabeth.Cooperman@cudenver.edu">Elizabeth.Cooperman@cudenver<wbr>.edu</a><br/> Auth-Page: <a href="http://ssrn.com/author=124770" target="_blank">http://ssrn.com/author=124770</a><br/> <br/> Full Text: <a href="http://ssrn.com/abstract=985621" target="_blank">http://ssrn.com/abstract<wbr>=985621</a><br/> <br/> ABSTRACT: We report on implicit compensation provided by the<br/> Colorado Public Employees Retirement Association plan using a<br/> unique data set of salary histories of recent university<br/> retirees. Implicit compensation is the difference between the<br/> expected present discounted value of retirement benefits and<br/> retirement account balances. Our results indicate sizable<br/> implicit compensation across four measures with strong evidence<br/> of significant relations on job class, retirement age, retirement<br/> period, and service years and some evidence of a gender effect.<br/> The results provide a historical baseline that should be useful<br/> in the design of compensation models with more realistic<br/> estimates of implcit retirement compensation.<br/> ______________________________<br/> <br/> "Economic Well-Being at Older Ages: Income- and Consumption-Based<br/> Poverty Measures in the HRS"<br/> NBER Working Paper No. W12680<br/> <br/> <br/> Contact: MICHAEL D. HURD<br/> The RAND Corporation, State University of New York<br/> - Department of Economics, National Bureau of<br/> Economic Research (NBER)<br/> Email: <a href="mailto:mhurd@RAND.ORG">mhurd@RAND.ORG</a><br/> Auth-Page: <a href="http://ssrn.com/author=158591" target="_blank">http://ssrn.com/author=158591</a><br/> <br/> Co-Author: SUSANN ROHWEDDER<br/> The RAND Corporation<br/> Email: <a href="mailto:Susannr@rand.org">Susannr@rand.org</a><br/> Auth-Page: <a href="http://ssrn.com/author=340388" target="_blank">http://ssrn.com/author=340388</a><br/> <br/> Full Text: <a href="http://ssrn.com/abstract=942975" target="_blank">http://ssrn.com/abstract<wbr>=942975</a><br/> <br/> ABSTRACT: According to economic theory, well-being or utility<br/> depends on consumption. However, at the household level, total<br/> consumption is rarely measured because its collection requires a<br/> great deal of survey time. As a result income has been widely<br/> used to assess economic well-being and poverty rates. Yet,<br/> because households can use wealth to consume more than income, an<br/> income-based measure of well-being could yield misleading results<br/> for many households, especially at older ages. We use data from<br/> the Health and Retirement Study to find income-based poverty<br/> rates which we compare with poverty rates as measured in the<br/> Current Population Survey. We use HRS consumption data to<br/> calculate a consumption-based poverty rate and study the<br/> relationship between income-based and consumption-based poverty<br/> measures. We find that the poverty rate based on consumption is<br/> lower than the income-based poverty rate. Particularly noteworthy<br/> is the much lower rate among the oldest single persons such as<br/> widows. The explanation for the difference is the ability to<br/> consume out of wealth. </div> </body> </html>