Illinois skjuter på pensionsproblemen

Illinois Illinois‘ overall fiscal picture is one of the worst in the nation. The state consistently scores among the worst on corruption ratings; significant income tax increases are constantly under consideration; and municipal bonds are poorly rated and require high yields to attract skeptical investors. Among all public […]

Pensionsreform för offentliganställda i Utah

Utah In 2009, Utah‘s public employees‘ pension program was, like that of many states, a defined benefit program. Generous benefits to current retirees, combined with the 2008-09 stock market crash, resulted in a drastic increase in Utah‘s future liabilities. According to Josh Barro: Utah was about to drown […]

Pensionsreform för offentliganställda i Michigan

Michigan As mentioned earlier, Michigan was the first state to shift its public-sector pension from a defined benefit to a defined contribution program. State employees hired after 1997 were automatically enrolled in a defined contribution plan. Under this system, employees‘ retirement accounts were individualized; the state now makes […]

Likviditet och marknader

Liquidity and markets It is useful to distinguish between different forms of financial market: markets for liquidity and markets for speculation. Of course, this is a simplification in that most markets lie on a spectrum between these extremes. The London unsecured deposit market is a prime example of […]

Keating om obestånd och redovisning

Insolvency and Accounting Formally, insolvency is the inability to pay one’s debts in full as they come due, but in practice may be characterised in a number of ways. The failure to meet obligations as they fall due is known as equitable insolvency, while the condition that liabilities […]

Fondering av pensionsåtaganden ock tidskonsistens

Time inconsistency The objective of pension schemes is to provide incomes for its members in retirement; they have many long-term cash-flow commitments. The problem of time-inconsistency arises because the long-term objective may not be optimally achieved as a sequence of short-term actions, even if these are themselves optimal. […]

Visst har vi råd med pensioner!

Don’t stop believing is a sequel to the October 2011 paper Don’t stop thinking about tomorrow, which considers in detail the position of UK private occupational pensions. It is thought-provoking: to quote one reviewer: “In his two “Don’t Stop” papers Con Keating has “watched” pensions more closely than […]

Effekter av IAS19

The latest version of IAS 19, introduced in June 2011, represents a considerable step towards even greater transparency with respect to pensions. Consequently, companies are likely to take a new look at how they manage pension risk. By reviewing the new elements introduced into IAS 19, we can […]

Krisbestämd kapitaförvaltning av pensionsmedel – de risking!

In a signal shift, the focus of pension risk management has moved away from Product (long bonds; swaps; futures) and toward Process. The fastest growth in the investment-based risk management world is in the adoption of dynamic investment policies, or “glidepaths.” In their simplest incarnation, dynamic investment policies […]