全球智库信息集成服务系统(G2TT): DP13591 Corporate Pension Plan Funding Levels and Pension Assumptions

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP13591
	DP13591 Corporate Pension Plan Funding Levels and Pension Assumptions
	Alexander Michaelides; Panayiotis Papakyriakou; Andreas Milidonis
发表日期	2019-03-17
出版年	2019
语种	英语
摘要	We use a difference-in-differences approach to examine the causal impact of the funding ratios of U.S. corporate defined benefit (DB) pension plans on the assumption of expected return on pension assets (EROA). To make the causal case, we use the 2008 global financial crisis as an exogenous shock to the funding ratio of DB pension plans, and the simultaneous implementation of the Pension Protection Act, which emphasized the accountability of underfunded pension plans. We find that DB pension plans making the transition from fully funded to underfunded status over this period significantly revise their EROA assumption upward. The upward revisions in EROA are economically significant and generate obligation-reducing outcomes for corporate plans sponsors: a switch from fully funded to underfunded status generates at least a 40 (and up to a 80) basis point increase in EROA, which, in turn, corresponds to an average annual reduction in pension contributions of $6 (to $11) million.
主题	Financial Economics
关键词	Defined benefit pension plans Pension assumptions Eroa Underfunded
URL	https://cepr.org/publications/dp13591
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/542449
推荐引用方式 GB/T 7714	Alexander Michaelides,Panayiotis Papakyriakou,Andreas Milidonis. DP13591 Corporate Pension Plan Funding Levels and Pension Assumptions. 2019.