The Impact of Longevity Improvements on U.S. Corporate Defined Benefit Pension Plans / John Kiff, Michael Kisser, Mauricio Soto, S. Oppers.

Format:

Book

Government document

Author/Creator:

Kiff, John.

Contributor:

Kisser, Michael.

Oppers, S.

Soto, Mauricio.

Series:

IMF Working Papers; Working Paper ; No. 2012/170

IMF Working Papers

Language:

English

Subjects (All):

Defined benefit pension plans--United States.

Defined benefit pension plans.

Longevity--United States.

Longevity.

Physical Description:

1 online resource (35 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2012.

Language Note:

English

Summary:

This paper provides the first empirical assessment of the impact of life expectancy assumptions on the liabilities of private U.S. defined benefit (DB) pension plans. Using detailed actuarial and financial information provided by the U.S. Department of Labor, we construct a longevity variable for each pension plan and then measure the impact of varying life expectancy assumptions across plans and over time on pension plan liabilities. The results indicate that each additional year of life expectancy increases pension liabilities by about 3 to 4 percent. This effect is not only statistically highly significant but also economically: each year of additional life expectancy would increase private U.S. DB pension plan liabilities by as much as $84 billion.

Contents:

Cover; Contents; I: Introduction; II: Related Literature; III: Data; IV: Analysis; A: A Simple Valuation Model; B: Main Results; C: Additional Robustness Checks; V: Conclusion; References; Appendix 1

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on print version record.

ISBN:

9781475526769

1475526768

9781475568097

1475568096

OCLC:

798586242