Richard A. Ippolito
This 1989 volume examines the economic rationale for and effects of the Pension Benefit Guaranty Corporation (PBGC), the US federal agency that insures corporate or private sector defined-benefit pension plans. The author, former chief economist of the PBGC, contends that the institution was initially created as a too-generous insurance provider in that benefits were not correctly priced relative to risk and exposure. The result was a system subject to moral hazard and redistribution between firms with well-funded pensions to those with poorly-financed funds. He explores ways to convert the scheme to a privatized system.
1989 · Richard D. Irwin, Inc. · ISBN 0-256-07474-7
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- Preface, Acknowledgments, Table of Contents, List of Tables & List of Figures
- Chapter 1: Overview of Pension Insurance
- Chapter 2: Insuring a Defined Benefit Contract
- Chapter 3: Insurance Principles and the PBGC
- Chapter 4: Revenue Implications of Claims Experience
- Chapter 5: Reform Efforts through 1987
- Chapter 6: Pricing Solutions
- Chapter 7: Underfunding Exposure: The Evidence
- Chapter 8: Toward Controlling Exposure
- Chapter 9: Efficiency Aspects of Pension Insurance Rules
- Chapter 10: Proposal for an Economic Insurance System
- Appendixes, Dissenting Comments & Index
