Multiperiod Pension Plans and ERISA

Langetieg, Terence C.; Findlay, M. Chapman; Motta, Luis Felipe Jacques da

doi:10.2307/2330910

Cited by 17 publications

(8 citation statements)

References 9 publications

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“…Finally, Langetieg et al (1981) consider P3GG insurance in a general multiperiod contingent claims framework, but examine only the qualitative properties of the insurance, and do not derive a valuation function for the insurance.…”

mentioning

confidence: 99%

Corporate Pension Policy and the Value of PBGC Insurance

Marcus¹

1983

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mentioning

confidence: 99%

Corporate Pension Policy and the Value of PBGC Insurance

Marcus¹

1983

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“…The pension benefit insurance can be thought of as a put option paid for by the sponsoring firm. Sharpe (1976), Treynor (1977) and Langetieg et al (1982) all examine the basic option pricing approach to valuing pension benefit insurance. Sharpe for example showed the problems that arise when the pension insurance fund does not receive full compensation for the risk taken by the sponsoring firm.…”

Section: Pension Benefit Insurancementioning

confidence: 99%

Sponsoring Company Finance, Investment and Pension Plan Funding

Webb

2007

The Economic Journal

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This article presents a model of the interaction of a company's financial and real investment decisions with the financing of its defined benefit pension plan. The pension plan deficit is a debt of the company, with explicit funding requirements and priority in the event of company insolvency. Pension plan deficits and options on future deficits and surpluses affect investment incentives as does the size and composition of company debt. We examine incentives for the firm to pay dividends rather than fund the pension plan and incentives to overfund the pension plan. The effects of pension benefit insurance and minimum funding requirements are shown. Copyright 2007 The Author(s). Journal compilation Royal Economic Society 2007.

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“…Various earlier authors have used option pricing methodology to study the valuation of PBGC insurance e.g. in a one period framework, with automatic termination at the end of the period (Sharpe 1976, Treynor 1977 or in a qualitative analysis (Langetieg et al, 1982). The justification for this approach is that the unfunded part of a firm's pension obligations is, from the perspective of the PBGC, unsecured corporate debt.…”

Section: Ds(t J=()mentioning

confidence: 99%

A Consideration of Pension Credit and Termination Insurance in the UK

Haberman

1997

Geneva Pap Risk Insur Issues Pract

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SummaryRecent events in the UK, and in particular the scandal associated with the business affairs of the late R Maxwell, have led to a thorough public scrutiny of the laws and regulation of occupational pension schemes. The Pension Law Review Committee has considered and reported on inter alia, the establishment of a "pension compensation fund". The purpose of this paper is to abstract from some of the current details of the debate in the UK and to consider the issues associated with pension credit and termination insurance as alternative means of operating and financing a pension compensation fund, to cover the contingency of underfunding in the event of the insolvency of the sponsoring employer.

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Multiperiod Pension Plans and ERISA

Cited by 17 publications

References 9 publications

Corporate Pension Policy and the Value of PBGC Insurance

Corporate Pension Policy and the Value of PBGC Insurance

Sponsoring Company Finance, Investment and Pension Plan Funding

A Consideration of Pension Credit and Termination Insurance in the UK

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