Behavioral Finance, Decumulation And The Regulatory Strategy For Robo-Advice, 2018 University of Pennsylvania Law School
Behavioral Finance, Decumulation And The Regulatory Strategy For Robo-Advice, Tom Baker, Benedict Dellaert
Faculty Scholarship at Penn Law
This working paper surveys the decumulation services offered by investment robo-advisors as a case study with which to examine regulatory and market structure issues raised by automated financial advice. We provide a short introduction to decumulation, describing some of the uncertainties involved in identifying optimal decumulation strategies and sketching a few of the ‘rules of thumb’ that financial advisors have developed in this area in the face of this uncertainty. Next we describe behavioral effects that could inhibit consumers from following an optimal decumulation strategy, concluding that, left to their own devices, consumers are likely to make sub-optimal decumulation decisions ...
A Lesson From Goodfellas: Why Current Illinois Consideration Based Pension Reform Proposals Still Fail, 2018 Northwestern Pritzker School of Law
A Lesson From Goodfellas: Why Current Illinois Consideration Based Pension Reform Proposals Still Fail, Lari A. Dierks
Northwestern Journal of Law & Social Policy
No abstract provided.
Title Vii And The Collateral Source Rule: Evaluating The Not-So Equitable Remedy In Eeoc V. Consol Energy, 2018 Boston College Law School
Title Vii And The Collateral Source Rule: Evaluating The Not-So Equitable Remedy In Eeoc V. Consol Energy, Virginia Calistro
Boston College Law Review
On June 12, 2017, the Fourth Circuit Court of Appeals affirmed the decision of the United States District Court for the Northern District of West Virginia to refuse an offset to a Title VII damage award by the amount of pension payments received following the plaintiff's constructive discharge. In doing so, the court adopted a new interpretation of the collateral source rule and its applicability in employment discrimination pay awards. The effect of this decision is to further compound a split of authority between multiple federal courts of appeals regarding the treatment of certain benefits in the wake of ...
How Special Is The Special Timing Rule? Analyzing The Timing Of Fica Taxation In Nonqualified Deferred Compensation Plans, 2018 Georgia State University College of Law
How Special Is The Special Timing Rule? Analyzing The Timing Of Fica Taxation In Nonqualified Deferred Compensation Plans, Alan J. Ponce
Georgia State University Law Review
Many employers offer nonqualified deferred compensation plans as a benefit to select employees, and those plans allow the employees to prepare for retirement in a tax-efficient manner. For employers,designing and administering such plans in compliance with federal law represents a paramount concern in order to achieve the tax advantages such plans entail. However, for these employers, there remains an inherent ambiguity in the tax code regarding how and when employers should withhold Federal Insurance Contribution Act (FICA) taxes—that is, Social Security and Medicare taxes—on deferred compensation in nonqualified retirement plans.
Tax regulations provide two distinct methods for ...
Untrustworthy: Erisa’S Eroded Fiduciary Law, 2018 College of William & Mary Law School
Untrustworthy: Erisa’S Eroded Fiduciary Law, Peter J. Wiedenbeck
William & Mary Law Review
The trust law analogy has come to dominate judicial thinking about employee benefit plans. Yet despite its rise to rhetorical prominence, ERISA fiduciary law has been dramatically transformed by a series of uncoordinated, low-visibility judicial decisions on multiple fronts. These apparently unconnected case law developments reveal a startling pattern of mutually reinforcing restrictions on ERISA’s protection of pension and welfare benefits. This study chronicles ERISA’s trust law turn to expose how untrustworthy workers’ benefit safeguards have become. Both the scope and the intensity of fiduciary oversight have been radically pruned back in the courts. Notwithstanding the congressional declaration ...
Promoting Retirement Security For Low-Income Workers In Illinois: An Analysis And Lessons For Other States, 2018 The University of Akron
Promoting Retirement Security For Low-Income Workers In Illinois: An Analysis And Lessons For Other States, Philip C. Aka, Chidera V. Oku, Murna Habila
Akron Law Review
This Article makes suggestions for promoting retirement security among low-income workers in Illinois with pointed lessons for workers in other U.S. states. Adapting a framework from a previous study by the principal author, the Article portrays retirement preparedness for low-income workers in Illinois as a function of changes in Social Security, employer-sponsored pensions, and personal assets—the famed “three-legged stool” of retirement income—synchronized with reduction of disparities between socioeconomic groups in education, healthcare, and housing. Many studies on retirement security focus excessively on the national level sometimes at the expense of the subnational phenomena that complicate retirement security ...
Failing Cities And The Red Queen Phenomenon, 2017 Lewis & Clark Law School
Failing Cities And The Red Queen Phenomenon, Samir D. Parikh, Zhaochen He
Boston College Law Review
Cities and counties are failing. Unfunded liabilities for retirees’ healthcare benefits aggregate to more than $1 trillion. Pension systems are underfunded by as much as $4.4 trillion. Many local government capital structures ensure rising costs and declining revenues, the precursors to service-delivery insolvency. These governments are experiencing the Red Queen phenomenon. They have tried a dizzying number of remedies, but their dire situation persists unchanged. State legislatures have failed to respond. More specifically, many states have refused to implement meaningful debt restructuring mechanisms for local governments. They argue that giving cities and counties the power to potentially impair bond ...
In Pursuit Of Good & Gold: Data Observations Of Employee Ownership & Impact Investment, 2017 Seattle University School of Law
In Pursuit Of Good & Gold: Data Observations Of Employee Ownership & Impact Investment, Christopher Geczy, Jessica S. Jeffers, David K. Musto, Anne M. Tucker
Seattle University Law Review
A startup’s path to self-sustaining profitability is risky and hard, and most do not make it. Venture capital (VC) investors try to improve these odds with contractual terms that focus and sharpen employees’ incentives to pursue gold. If the employees and investors expect the startup to balance the goal of profitability with another goal—the goal of good—the risks are likely to both grow and multiply. They grow to the extent that profits are threatened, and they multiply to the extent that balancing competing goals adds a dimension to the incentive problem. In this Article, we explore contracting ...
My Company Is Freezing The Pension Plan: What Does This Mean?, 2017 University of Massachusetts Boston
My Company Is Freezing The Pension Plan: What Does This Mean?, Pension Action Center, Gerontology Institute, University Of Massachusetts Boston
Pension Action Center Publications
As employers move away from traditional defined benefit pension plans in favor of defined contribution 401(k) plans, the number of frozen pension plans is rapidly increasing. While most companies would like to rid themselves of their pension plan liabilities, more often than not, employers deem it too costly to terminate their existing plans and pay out all accrued benefits to participants and beneficiaries. As a result, instead of terminating their existing pension plans, many employers are electing to “freeze” their plans. Pension plans may be frozen using a “hard freeze” or a “soft freeze”. While both types of plan ...
Lump Sum Vs Annuity Payments: Which Is Right For Me?, 2017 University of Massachusetts Boston
Lump Sum Vs Annuity Payments: Which Is Right For Me?, Pension Action Center, Gerontology Institute, University Of Massachusetts Boston
Pension Action Center Publications
As employers are looking to reduce pension plan liabilities, more and more participants are being given the option to receive a one-time lump sum payment from their pension plan in lieu of receiving monthly annuity payments for life. Deciding on which form of pension benefit to take is a very important decision that requires careful consideration. Unfortunately, there is no one-size-fits-all answer. While a lump sum may make sense for one person, it may be a serious mistake for another. And it is a decision that you will have to live with for the rest of your life. Anyone who ...
Survivor Funds, 2017 University of Oklahoma
Survivor Funds, Jonathan Barry Forman, Michael J. Sabin
Pace Law Review
This Article explains how to create “survivor funds”—short-term investment funds that would pay more to those investors who live until the end of the fund’s term than to those who die before then. For example, instead of just investing in a ten-year bond and dividing the proceeds among the investors at the end of the bond term, a survivor fund would invest in that ten-year bond but divide the proceeds only among those who survived the full ten years. These survivor funds would be attractive investments because the survivors would get a greater return on their investments, while ...
2015-2016 Legislative Summary, 2017 Golden Gate University School of Law
2015-2016 Legislative Summary, Assembly Committee On Public Employees, Retirement And Social Security
No abstract provided.
Despite Some Gains, Social Security Administration Data Show A Low Level Of Workforce Participation Among Ssi Recipients, 2017 University of Massachusetts Boston
Despite Some Gains, Social Security Administration Data Show A Low Level Of Workforce Participation Among Ssi Recipients, Daria Domin, Jaimie Ciulla Timmons, Thinkwork! At The Institute For Community Inclusion At Umass Boston
Data Note Series, Institute for Community Inclusion
According to the Social Security Administration (SSA), a total of 4,961,659 blind and disabled recipients1 between the ages of 18 and 64 received Supplemental Security Income (SSI) benefits in 2015. Out of the almost 5 million individuals receiving SSI benefits, only 6.3% worked (n=311,922).
Adults with disabilities between the ages of 40 and 64 were a significant demographic of people who receive SSI, constituting almost two thirds of recipients in 2015 (64%; n=3,167,307). However, only 3.5% (n=111,762) of SSI recipients with disabilities in this age group worked.
The Other Securities Regulator: A Case Study In Regulatory Damage, 2017 University of Washington School of Law
The Other Securities Regulator: A Case Study In Regulatory Damage, Anita K. Krug
Although the Securities and Exchange Commission is the primary securities regulator in the United States, the Department of Labor also engages in securities regulation. It does so by virtue of its authority to administer the Employee Retirement Income Security Act (ERISA), the statute that governs the investment of retirement assets. In 2016, the DOL used its securities regulatory authority to adopt a rule that, for the first time, designates securities brokers who provide investment advice to retirement investors as fiduciaries subject to ERISA's stringent transaction prohibitions. The new rule's objective is salutary, to be sure. However this Article ...
Defining “Fiduciary”: Aligning Obligations With Expectations, 2017 Brooklyn Law School
Defining “Fiduciary”: Aligning Obligations With Expectations, Ashley C. Vicere
Brooklyn Law Review
Poor investment decisions rob many Americans of the worry-free retirement for which they had desperately planned. Hiring an investment adviser does not always shield retirement savers from making poor investment decisions because some advisers have conflicts of interest and receive commissions for recommending certain investments. This practice encourages them to recommend products that generate advisers more income rather than products that most benefit investors. To address these conflicts of interest, the Department of Labor (DOL) promulgated a new rule redefining when an investment adviser is a “fiduciary” of a retirement investor under the Employee Retirement Income Security Act of 1974 ...
Achieving American Retirement Prosperity By Changing Americans' Thinking About Retirement, 2017 University of Colorado Law School
Achieving American Retirement Prosperity By Changing Americans' Thinking About Retirement, Peter H. Huang
There are many decisions that Americans have to make about retirement before, at, and after retirement. For example, Americans have to decide when to start saving for retirement, how much to save, how to invest those savings, when to retire, when to claim social security, and how to take required minimum distributions from 401(k) plans or Individual Retirement Accounts. Different things can go wrong at each of these decisions for different reasons. Many Americans, for various reasons, including insufficient energy, money, motivation, time, and understanding, do no retirement planning. Some Americans do some retirement planning, yet worry they are ...
Addressing The Retirement Crisis With Shadow 401(K)S, 2017 University of Pennsylvania Law School
Addressing The Retirement Crisis With Shadow 401(K)S, Deepa Das Acevedo
Notre Dame Law Review Online
This Essay discussed the Shadow 401(k) and its feasibility as a response to the "retirement crisis."
Closing The Retirement Savings Gap: Are State Automatic Enrollment Iras The Answer?, 2016 University of Kentucky
Closing The Retirement Savings Gap: Are State Automatic Enrollment Iras The Answer?, Kathryn L. Moore
Law Faculty Scholarly Articles
Drawing on insights from behavioral law and economics, automatic enrollment IRAs are intended to address the nation’s retirement savings gap by taking advantage of workers’ inertia. Although automatic enrollment IRAs were initially intended to apply at the federal level, they have gained little traction at the federal level, and states have begun to step into the breach. Between September 2012 and June 2016, five states enacted state automatic enrollment IRA programs.
Studies have uniformly shown that workers are more likely to participate in an automatic enrollment 401(k) plan than in a traditional opt-in 401(k) plan. Proponents of ...
Surviving The Storm 2016: Employee Benefit Compliance & Employment Law Update, 2016 Marsh & McLennan Agency
Surviving The Storm 2016: Employee Benefit Compliance & Employment Law Update, George Thompson, Brooks R. Magratten, Mark A. Pogue, Kelli Viera, Cecily Banks, Roger Williams University School Of Law
School of Law Conferences, Lectures & Events
No abstract provided.
Public Pensions And Fiduciary Law: A View From Equity, 2016 University of Maryland
Public Pensions And Fiduciary Law: A View From Equity, T. Leigh Anenson
University of Michigan Journal of Law Reform
Controversies involving fund management may be the next frontier of public pension litigation. Recent scandals involving fraud, bribery, and corruption of public pension officials and other third parties have drawn the public eye toward the management of retirement assets. Individual and entity custodians, including pension boards of trustees, are charged with making investment and other decisions relating to pension funds. Unlike private pensions, there is no federal oversight of asset managers or others in control of retirement funds. Yet these funds hold more than three trillion dollars in assets. Until now, the guardians of these monies have operated almost invisibly ...