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Informationen zum Autor M. BARTON WARING is a financial economist and lawyer, and an active researcher in pension finance and investing. He retired in 2009 from his role as CIO for investment strategy and policy, emeritus, at Barclays Global Investors. Mr. Waring is well known in the pension industry for his many thoughtful and often prizewinning articles. He serves on the editorial board of the Financial Analysts Journal and as an Associate Editor of the Journal of Portfolio Management . Klappentext Pension plans around the world are in a state of crisis. U.S. plans alone are facing a total accrued liability funding deficit of almost $4 trillion (of the same order of magnitude as the federal debt), a potential financial catastrophe that ranks among the largest ever seen. It has become clear that many government, corporate, and multi-employer pension sponsors will not be able to cope with this crippling debt and may default on promised benefits. And many of those sponsors that might be able to cope are exasperated by continuous, ongoing negative surprises-large unexpected deficits and higher-than-expected required contributions and pension expense-and are choosing to terminate their plans.But it need not be so. Pension Finance: Putting the Risks and Costs of Defined Benefit Plans Back under Your Control walks the reader through the conventional actuarial and accounting approaches to financing pension benefits and investing plan assets, showing that the problems described happen as a natural consequence of the dated methods still in use. It shows in detail how modern methods based on market value will easily minimize these risks: Pension plans can in fact be comfortable for employers to sponsor and safe for employees to contribute todepend on for their retirement needs.This book is must-read for defined benefit pension plan sponsors and employee representatives, plan executives, board members, accountants, fund managers, consultants, and regulators., Research sponsored by the CFA Institute, this book demystifies pension finance, previously accessible only to actuaries. It teaches the topic in lay terms by drawing complete analogies to ordinary transactions such as paying off a mortgage or saving for college. Armed with this book, anyone comfortable with finance and investments in any other context can be comfortable with pension finance and pension investment policy. And further armed with a handheld financial calculator, any layperson can quickly estimate the contributions needed to keep a given plan comfortably solvent, giving them a powerful tool for oversight. Zusammenfassung Pension plans around the world are in a state of crisis.U.S. plans alone are facing a total accrued liability funding deficit of almost $4 trillion (of the same order of magnitude as the federal debt), a potential financial catastrophe that ranks among the largest ever seen. Inhaltsverzeichnis List of Figures xiii List of Propositions xv Foreword xxi Preface xxv Acknowledgments xxxiii CHAPTER 1 Achieving Long Term Health for Pension Plans Using Improved Managerial Accounting Tools 1 Perspectives on DB Plans 2 What Is Economic or Market Value Accounting? 4 What the Following Chapters Provide 5 CHAPTER 2 Today's Conventional Pension Finance Practices 11 Why Managers Need to Adopt the Economic Accounting Perspective 11 Where Are We Today? 12 The Accounting Always Follows the Economics 17 Historical Context: The Actuaries' Contribution to the Existence of Pensions 21 Conclusion 24 CHAPTER 3 Measuring Meaningful Present Values 27 What Is the Right Discount Rate to Use? 27 The Liability-Matching Portfolio: General Perspective 30 Risk-Free Rate vs. Expected Return on Assets 33 "If We Can Earn 7.5 Percent Per Year Over The Long Term": Happy and Un...
