The Impact of the Financial Crisis on Defined Benefit Plans and the Need for Counter-Cyclical Funding Regulations / Juan Yermo and Clara Severinson = Répercussions de la crise financière sur les plans à prestations définies et nécessité d'imposer des règles de financement à caractère anticyclique / Juan Yermo et Clara Severinson.
- Format:
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- Author/Creator:
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- Contributor:
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- Series:
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- Language:
- English
- Subjects (All):
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- Physical Description:
- 1 online resource (31 pages).
- Other Title:
- Répercussions de la crise financière sur les plans à prestations définies et nécessité d'imposer des règles de financement à caractère anticyclique
- Place of Publication:
- Paris : OECD Publishing, 2010.
- System Details:
- text file
- Summary:
- Three essential goals of pension plan funding are the long-term viability, stability and security of member benefits. Reform of funding regulations for defined benefit (DB) pension schemes to make them more counter-cyclical in nature can help achieve these goals as well as make DB schemes more attractive to plan sponsors that are increasingly moving away from DB towards defined contribution plans. If designed properly, funding regulations could help maintain DB systems for the long-term and provide greater member security. Broadly speaking, DB funding regulations should (i) encourage deficit reduction contributions and appropriate build up of surplus when plan sponsor finances are strong; (ii) help maintain predictable costs and dampen volatility; and, (iii) give plan sponsors more control to manage risks and costs. This paper discusses the impact of the crisis on DB pension schemes and the temporary responses taken by regulators to help ease financially strained plan sponsors. Furthermore, the paper presents suggestions to governments and policy-makers for making funding regulations more counter-cyclical in nature. Such measures could strengthen the security of DB benefits and help to maintain DB plans for future workers.
- Notes:
- Title from title screen (viewed May 1, 2017).
- Access Restriction:
- Restricted for use by site license.
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