Pension scheme redesign and wealth redistribution between the members and sponsor: The USS rule change in October 2011

Platanakis, Emmanouil; Sutcliffe, Charles

doi:10.1016/j.insmatheco.2016.04.001

Cited by 11 publications

(3 citation statements)

References 48 publications

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“…This paper is the first study of the net wealth effects of rule changes by a large pension scheme (USS). It builds on Platanakis and Sutcliffe (2016) by incorporating twelve taxes and reliefs into their model of USS.…”

Section: Discussionmentioning

confidence: 99%

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Pension Schemes, Taxation and Stakeholder Wealth: The USS Rule Changes

Platanakis

Sutcliffe

2017

SSRN Journal

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Section: Discussionmentioning

confidence: 99%

“…Finally these cash flows are discounted back to 2011 to give the gross change in wealth for each age cohort and 6 For a fuller description of the rule changes and their model see Platanakis and Sutcliffe (2016).…”

Section: Summary Of the Pands Modelmentioning

confidence: 99%

Pension Schemes, Taxation and Stakeholder Wealth: The USS Rule Changes

Platanakis

Sutcliffe

2017

SSRN Journal

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“…2 See the works on measuring distributional effects in the pension system, e.g., Cubeddu (2000), Börsch-Supan and Reil-Held (2001), Gustman and Steinmeier (2001), Coronado, Fullerton, and Glass (2002), Barnay (2007), Cremer et al (2010), Forteza and Ourens (2012), Le Garrec (2012), Gustman et al (2013), Platanakis and Sutcliffe (2016).…”

Section: Introductionmentioning

confidence: 99%

Fairness and annuity divisors for notional defined contribution pension schemes

Boado‐Penas

Haberman

Naka

2020

Journal of Pension Economics and Finance

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The use of a gender-neutral annuity divisor introduces an intra-generational redistribution from short-lived towards long-lived individuals; this entails a transfer of wealth from males to females and from low socioeconomic groups to high socioeconomic groups. With some subpopulations consisting of females from low socioeconomic groups (or males from high groups), the net effect of the redistribution is unclear. The study aims to quantify the lifetime income redistribution of a generic NDC system using two types of divisor – the demographic and the economic – to compute the amount of an initial pension. With this in mind, the redistribution (actuarial fairness) among subpopulations is assessed through the ratio between the present value of expected pensions received and contributions paid. We find that all subgroups of women and men with high educational attainment benefit from the use of the unisex demographic divisor. This paper also shows that the value of the economic divisor depends markedly on population composition. When mortality differentials by gender and level of education are considered, economic divisors are mostly driven by the longevity effect corresponding to gender.

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