Growing Old: Paying for Retirement and Institutional Money Management after the Financial Crisis

Index

 Index ABO. See Accumulated benefit obligation Accounting standards: corporate, 53, 56; for defined benefit plans, 2, 128; international, 40, 128; for state and local governments, 47, 129–30. See also Liabilities Accumulated benefit obligation (ABO), 52–53, 57, 62, 63, 64 Adequacy of pension plans, 13, 19–20, 22 Alternative investments: asset allocations by institutional investors, 33, 45, 108–13, 120–25, 127, 131–32, 134, 135, 136, 137–38; returns, 138. See also Hedge funds; Private equity funds Ambachtsheer, Keith, 37 Annuities, 59, 84, 88–89 Argentina, pension funds, 86 Asia: asset allocations by institutional investors, 33, 101, 102, 104, 108, 109, 110, 112; demographic trends, 13–14; shift to private pensions, 19–28. See also China; Japan; Korea Asset allocations: decisions, 35; in defined contribution plans, 42–43, 85, 88; definition, 95; strategic, 95; tactical, 95–96 Asset allocations by institutional investors: alternative investments, 33, 45, 108–13, 120–25, 127, 131–32, 134, 135, 136, 137–38; cash, 134–35; corporate pension plans, 104, 127–28; diversification, 114–18, 137; endowments and foundations, 132, 134–36, 138; equities, 33, 97–104, 114, 118, 127, 131, 132, 134, 137; evaluation of trends, 113–25; fixed income, 33, 104–08, 118–20, 127–28, 131, 132, 134, 137; foundations, 135–36; future intentions, 99, 106–08; by geographic region, 97–113; by investor type, 125–36; performance determined by, 95; policy objectives, 99, 114; public pension plans, 33, 104, 105, 131–32, 137–38; trends, 97–113, 136–37 Automatic enrollment, 27–28, 41, 82, 88 Barclays Treasury indices, 119 Benartzi, Shlomo, 88 Bonds. See Fixed-income investments; Government bonds Boston, public pension funds, 64, 68 Brown, Jeffrey, 64 California, state and local pension plans, 2, 129 Cambridge Associates, 123–24, 132, 134 Canada: asset allocations by institutional investors, 102, 108, 112–13; public pension reserve funds, 30 Canada Pension Plan Investment Board (CPPIB), 33 Casey, Quirk & Associates, 101, 105 Cerulli Associates, 126, 128, 132 Chicago, public pension funds, 50, 64, 68, 72–73 Chicago Teachers’ Pension Fund, 50 Chicago Transit Authority, 50 China: corporate pensions, 19, 24, 25, 39, 42, 43; defined contribution plans, 28–29, 39, 42; pension reforms, 11, 28–29, 45; private pension assets, 24; state-owned enterprises, 19 China, public pensions: asset allocation, 29, 33; coverage rates, 22; defined contribution plans, 28–29, 39; description of system, 19; individual accounts, 29; investment policies, 32; partially funded, 29; prefunding, 12, 28–29; replacement rates, 22; reserve funds, 29–30, 35, 36, 43–45 City governments, 50. See also Local government pension plans COLAs. See Cost of living adjustments Commodity investments, 132, 134 Commonfund, 132, 135 COMWEL. See Korea Workers’ Compensation and Welfare Service Corporate pension plans: in Asia, 11, 15, 18–19, 24, 25–26, 27, 28, 39–40, 41–43, 45; asset allocations, 104, 127–28; assets, 24, 126; contribution levels, 40–41; coverage rates, 24–25, 26, 27; defined benefit plans, 126–28; in developed economies, 85, 126–28; discount rates used, 56; financial education for employees, 82; government insurance, 85; liability accounting, 53, 56; mandatory enrollment, 25, 38; return assumptions, 128; shift to defined contribution plans, 13, 37–38, 45; unfunded liabilities, 85, 126–27; in United States, 85, 126–28 Cost of living adjustments (COLAs), 52–53, 57, 130 Council on Foundations, 135 County governments, 50, 73. See also Local government pension plans CPPIB. See Canada Pension Plan Investment Board Credit Suisse, 127 DB plans. See Defined benefit plans DC plans. See Defined contribution plans Defined benefit (DB) plans: accounting standards, 2, 128; corporate, 126–28; effects of market shocks, 76–77; in Japan, 18, 26, 39, 40, 45; in Korea, 18, 39; public pensions, 128–29, 131; return estimates, 2; underfunding, 1–2, 129. See also Local government pension plans Defined contribution (DC) plans: advantages, 84, 90; asset allocation, 42–43, 85, 88; automatic enrollment, 27–28, 41, 82, 88; in China, 28–29, 39, 42; company stock in, 88; contribution levels, 40–41; corporate, 13, 37–38, 45; criticism of, 84; effects of market shocks, 76–77; in Europe, 38, 41, 42; 401(k) plans, 38, 41; growth, 38, 77–78; investment decisions, 41–43, 85; in Japan, 24, 26, 39–40, 42–43, 45, 78, 85; in Korea, 39, 41–42, 45; lump-sum cashouts, 88–89, 90; notional, 13; risk management, 88–89; risks, 78–88; shift to, 13...