金融机构与市场chapter-18.pptVIP

The Practicing Manager: Insurance Management Screening Risk-Based Premium Restrictive Provisions Prevention of Fraud Cancellations of Insurance Deductibles Coinsurance Limits on the Amount of Insurance Pensions Definition: A pension plan is an asset pool that accumulates over an individual’s working years and is paid out during the nonworking years. Developed as Americans began relying less on children for care during their later years. Also became popular as life expectancy increased Types of Pensions Defined-Benefit Pension Plans: a plan where the sponsor promises the employee a specific benefit when they retire. For example, Annual Retirement Payment = 2% ? average of final 3 years’ income ? years of service Types of Pensions Defined-Benefit Pension Plans place a burden on the employer to properly fund the expected retirement benefit payouts. Fully funded: sufficient funds are available to meet payouts Overfunded: funds exceed the expected payout Underfunded: funds are not expected to meet the required benefit payouts Types of Pensions Defined-Contribution Pension Plan: a plan where a set amount is invested for retirement, but the benefit payout is uncertain. Private Pension Plans: any pension plan set up by employers, groups, or individuals Public Pension Plan: any pension plan set up by a government body for the general public (e.g., Social Security) Figure 22.5 Distribution of Private Pension Plan Assets (end of 2003) Private Pension Plan Assets Social Security Pay as you go system, where current funding is used (partially) to pay current benefits. Projected number of workers is falling while projected number of retirees is increasing, which will cause problems in years to come if not corrected. Social Security Assets Figure 22.6 Social Security Fund Assets, 1957–2003 Figure 22.7 Projected Social Security Trust Fund Assets Social Security Assets Regulation of Pension Plans A major U.S. Supreme Court decision in 1949 established that pension benefit