4,104 research outputs found

    Post-Retirement Adjustments of Pension Benefits

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    This paper examines why pension plans increased their liabflities by giving benefit increases to persons no longer working even though almost al lof them were not required to do so by any legally enforceable contract. In our model workers and firms have implicit contracts under which post-retirement increases in benefits are purchased by workers through lower wages or initial benefits. Such arrangements permit both plans and workersto share the risk of uncertain rates of return. They also allow beneficiaries to invest at a higher net rate of return than they could obtain elsewhere because of tax advantages and, in large plans, economies of scale. We also discuss how post-retirement adjustments can be used to influence turnover. Some empirical implications of the model are tested over a sample of beneficiaries of defined benefit plans. The major empirical findings are:(1) There is strong evidence of compensating differentials in final salary and initial pension benefits for beneficiaries receiving post-retirement adjustments.(2) Regardless of how the size of pension plans is measured(beneficiaries, participants, amount of benefits paid), large pension plans provide larger post-retirement benefit increases.(3) Beneficiaries of collectively bargained plans are more likelyto receive benefit increases and, among those receiving benefit increases, receive larger increases.(4) Benefit increases are larger in percentage terms for those who have been retired the longest and for those with the most years of service.

    Why Do Pensions Reduce Mobility?

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    Previous studies have found that workers who are covered by pensions are much less likely than other workers to leave their jobs, but the evidence on how specific pension characteristics affect turnover is inconclusive. This paper examines how mobility is affected by vesting standards, the compensation level, and the capital loss of pension wealth for job changers. In two different data sets, we find that the capital loss is strongly associated with lower turnover rates, whereas vesting and the compensation level have relatively little impact. Large capital losses are mainly associated with lower layoff rates rather than lower quit rates.

    Pension Wealth, Age-Wealth Profiles and the Distribution of Net Worth

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    This study estimates the magnitude of pension wealth and compares pension wealth to net worth for households in the 1983 Survey of Consumer Finance (SCF). The SCF is the first data set to provide detailed information on both household finances and pension characteristics. The pension information is provided by the employer, so that it is much more detailed and likely to be more accurate than the pension data used in previous studies. Pension wealth was estimated under two sets of assumptions. Under the projected earnings approach, mean pension wealth is 98,291,whichrepresents43percentofmeannetworthforhouseholdswithpensions.Underthelegalmethodofcalculatingpensionwealth,meanpensionwealthis98,291, which represents 43 percent of mean net worth for households with pensions. Under the legal method of calculating pension wealth, mean pension wealth is 47,541, which represents 26 percent of mean net worth for households with pensions. Both estimates are much larger than those obtained in earlier studies. The study also examines how estimates of inequality in the wealth distribution change when pension wealth is added to household balance sheets. Using a variety of methods and assumptions, the distribution becomes more equal when the definition of wealth is expanded to include pension assets.

    Pensions, Bonding, and Lifetime Jobs

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    A well-known, if underappreciated, finding in the mobility literature is that turnover is much lower in jobs covered by pensions than in other jobs. This could result from capital losses for job changes created by most benefit formulas, the tendency of turnover-prone individuals to avoid jobs covered by pensions, or higher overall compensation levels in such jobs. A switching bivariate probit model of pension coverage and turnover is developed to estimate the effect of each of these factors. The results show that capital losses are the main factor responsible for lower turnover in jobs covered by pensions, but self-selection and compensation levels also play an important role. This is the first direct evidence that bonding is important for understanding long-term employment relationships.

    Under New System, Bridges Build You

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    Let’s take a page from the lessons that public-speaking classes convey, viz. “tell them what you’re going to tell them, tell them, and then tell them what you’ve told them.” Thus: ‱ In response to calls from SIOP’s past leadership, the Bridge Builders group—one designed to spread awareness and understanding of I-O psychology to many different audiences—was developed and counts among its members many of us from SIOP. President Steve Kozlowski’s vision for the organization in the coming years dovetails well with the objectives of Bridge Builders.‱ Bridge Builders have been doing some really cool things recently; these were showcased in a session at SIOP this year. ‱ Want to get involved in this exciting initiative? You should. We’ll show you how to get started

    Manager-Led Group Meetings: A Context for Promoting Employee Engagement

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    Employee engagement is a positive, fulfilling, work-related state of mind characterized by vigor, dedication, and absorption. Using Kahn’s theory of engagement, we look at an organizational context where employee engagement may be promoted—the workgroup meeting. Two time-separated Internet-based surveys were used to query a sample of working adults (N = 319). The findings provide support that the psychological conditions for engagement mediate the relationship between manager usage/facilitation of meetings and overall employee engagement. Specifically, as managers make their workgroup meetings relevant, allow for employee voice in their meetings where possible, and manage the meeting from a time perspective, employees appear poised to fully engage themselves in their work in general. The results suggest that managers can use a common workplace activity, workgroup meetings, to engage their employees when they use/facilitate meetings in an effective manner

    Parasites on parasites:Coupled fluctuations in stacked contact processes

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    We present a model for host-parasite dynamics which incorporates both vertical and horizontal transmission as well as spatial structure. Our model consists of stacked contact processes (CP), where the dynamics of the host is a simple CP on a lattice while the dynamics of the parasite is a secondary CP which sits on top of the host-occupied sites. In the simplest case, where infection does not incur any cost, we uncover a novel effect: a non-monotonic dependence of parasite prevalence on host turnover. Inspired by natural examples of hyperparasitism, we extend our model to multiple levels of parasites and identify a transition between the maintenance of a finite and infinite number of levels, which we conjecture is connected to a roughening transition in models of surface growth

    Cosmological Parameters from Observations of Galaxy Clusters

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    Studies of galaxy clusters have proved crucial in helping to establish the standard model of cosmology, with a universe dominated by dark matter and dark energy. A theoretical basis that describes clusters as massive, multi-component, quasi-equilibrium systems is growing in its capability to interpret multi-wavelength observations of expanding scope and sensitivity. We review current cosmological results, including contributions to fundamental physics, obtained from observations of galaxy clusters. These results are consistent with and complementary to those from other methods. We highlight several areas of opportunity for the next few years, and emphasize the need for accurate modeling of survey selection and sources of systematic error. Capitalizing on these opportunities will require a multi-wavelength approach and the application of rigorous statistical frameworks, utilizing the combined strengths of observers, simulators and theorists.Comment: 53 pages, 21 figures. To appear in Annual Review of Astronomy & Astrophysic
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