879_Paula Lopez Paper
... Why are annuities not voluntarily taken up by a larger number of retirees? In the individual
consumption/savings-portfolio choice literature, a very important participation puzzle arises
from the revealed preference of households not to voluntarily buy annuities at retirement,
despite the strong the ...
Forms of Benefit Payment at Retirement
... pension systems (notably in Central and Eastern Europe, China, etc.) have successfully launched the
capital accumulation phase. Policymakers introducing these new systems have focused on this phase as
the number of retirees (beneficiaries) is initially low, even more so because older workers are oft ...
... in a single capital stock.3 By 1992, almost 95% of employees had shifted to
Chile has provided a widely discussed early model for increased reliance
on private plans as an alternative to collective state pension provision. Many
have identiﬁed it as an example of the advantages of market pr ...
Two Essays on Adverse Selection in Annuity Markets
... A fourth explanation is that in reality annuities may not be actuarially fair, in the sense that
individuals are insufficiently compensated for their risk of dying. This may be due to administrative
costs and taxes, or monopoly profits as a result of imperfect competition among annuity firms. The
Risk Factors A number of risk factors affect Prudential`s operating
... fluctuations. Prudential’s operations in the US and Asia, which represent a significant proportion of operating
profit based on longer-term investment returns and shareholders’ funds, generally write policies and invest in
assets denominated in local currencies. Although this practice limits the eff ...
Market-Consistent Valuations of Life Insurance Business
... We also find significant differences between firms using different models. In many
cases, firms using the BH model had the highest put option prices, then insurers using
TSM, with those using the “other” models having the lowest. For 15-year at-the-money
put options on equities, insurers using the B ...
Open Research Online How Might We Create a Secondary Annuity
... market can render competition ineffective. Effective competition also requires that pensioners shop
around for the best price and that bidders are able to collect the information necessary to prevent
adverse selection. If pensioners don’t shop around, for example if they surrender their annuity back ...
Automatic Annuitization: New Behavioral Strategies for Expanding
... Given the success of 401(k) automatic
enrollment, would making an annuity the
default option at retirement similarly
increase the percentage of pension
participants taking annuities? The
evidence suggests it would not.
Although a useful element in a strategy
to encourage the selection of annuities, ...
charitable gift annuities at the university of california
... University of California to support undergraduate programs. After consulting
with her attorney and financial advisor, she decides that a charitable gift
annuity is the most beneficial way for her to make the gift.
Using appreciated securities valued at $20,000, Mrs. Roberts establishes a charitable
A guide to how we manage our with-profits fund
... So, for example, in good years we will hold back some of the profits and use them to top
up bonuses in poorer years.
However, smoothing will not stop bonuses or other payouts from getting progressively
smaller if investment returns remain low over several years. So, when times are not so
good, you m ...
1 ANTARES PHARMA, INC. AMENDED AND RESTATED
... The Compensation Committee shall receive appropriate funding from the Company,
as determined by the Compensation Committee in its capacity as a committee of the
Board, for the payment of compensation to its compensation consultants, outside legal
counsel and any other advisors. However, the Compensa ...
... SMI Work Plan
Analyze other financial supervisory modernization initiatives, to the
extent appropriate. Analysis should include
•the Basel II international capital framework for banks and
implementation in the U.S.;
•solvency work by the International Association of Insurance
Present Value of an Ordinary Annuity
... Input 18 and then press N.
Input 10 and then press I/Y.
Input 0, and then press PV.
Input 60,000 and then press FV
Press CPT PMT = 1,315.81
If Moore Company pays $1,315.81 at the end of each period for 18 years,
then $60,000 will be available to pay off the bond issue at maturity.
RetireOneTM Transamerica II Eligible Strategies
... The RetireOne Transamerica II Contingent Deferred Annuity requires an
investor’s holdings to remain fully invested in certain specific investments
(“eligible assets”). It does not guarantee eligible asset performance or
against a loss of principal. Ownership of the eligible assets on which the
Your guide to investing in With-Profits
... Any change to this practice would apply
immediately, both to bonds existing at the
time the change was made and to
subsequent new bonds.
The way that PAC applies smoothing
depends on the period of your investment
in the fund.
LIQUIDITY PAPER v4 - Institute and Faculty of Actuaries
... In the UK, liquidity has become more of an issue. Portfolios are becoming mature and
cashflow is frequently negative. In addition, the experience of Equitable Life has
highlighted the possibility of large discretionary outflows where consumer confidence
is lost in a company.
At least one credit rati ...
Long-Term Insurance Act: Prescribed
... a financial institution as defined in paragraph (a) of the c1efinition of 'financial
institution' in section 1 of the Finaneial Services Board Act, 1990 (Act No. 97 of 1990);
a bank as defined in section 1(1) of the Banks Act, 1990 (Act No. 94 of 1990), or a
mutual bank as defined in section 1(1) of ...
Universal Life with No Lapse Guarantees: What You Need to Know!
... want to sell their policies, with the buyers continuing to maintain them until the insured’s death.2
Both Fitch in its report and Professor Joseph Belth in his March/April 2004 issue of The
Insurance Forum cite the history from the 1980’s and early 90’s of term life insurance to age 100
with no cash ...
Blues Plans Are Criticized on Executive Compensation
... Oklahoma and Texas "have performed very well over the past several years."
The compensation practice, he asserts, is reviewed annually "to ensure it's in line
with our industry's expectations. And based on both independent analyses and our
own analysis, our executive pay is well within the compensat ...
How critical the built up of estate is in participating fund and how
... Shareholders prefer early return on their investment – higher regular bonus
and low terminal bonus - fluctuation in regular bonus would be acceptable.
Policyholder expects steady bonuses in line with PRE created by illustrated
bonuses, past declared bonuses and bonuses declared by other companie ...
... profit. Policyholders receive a distribution of profits by means of bonuses, or
other methods as specified in the relevant policy documentation. There are
two types of bonus, regular (or reversionary) and final (or terminal) bonus.
The performance figures shown are overall annualised returns for
U.S. Annuity Market Dynamics and Regulatory Requirements
... contracts have annual household income of less
than $100,000; that includes 64% who earn less
Nine in 10 Baby Boomers who own annuities
believe that they are doing a good job preparing
The Equitable Life Assurance Society
The Equitable Life Assurance Society (Equitable Life), founded 1762, is a life insurance company in the United Kingdom. The world's oldest mutual insurer, it pioneered age based premiums based on mortality rate laying “the framework for scientific insurance practice and development”and “the basis of modern life assurance upon which all life assurance schemes were subsequently based”.At its peak, Equitable had 1.5 million policyholders with funds worth £26 billion under management, but it had allowed large unhedged liabilities to accumulate in respect of guaranteed fixed returns to investors without making provision for adverse market changes. Following a July 2000 House of Lords ruling, and failure of attempts to find a buyer for the business, it closed to new business in December 2000 and reduced payouts to existing members. The 2004 Penrose report found that the company had made over-generous payouts leading it to be under-funded. A 2007 European report concluded that regulators had focused on solvency margins and failed to consider the increasing risk of accrued terminal bonuses.The October 2010 Spending Review by the coalition government announced compensation of £1.5Bn - above the level recommended by the review conducted by Sir John Chadwick and below the £4-4.8Bn loss calculated by consultants Towers Watson.