The Best Of Times And The Worst Of Times: Lessons From Recent Reforms Of The French Retirement, 2014 University of Georgia School of Law
The Best Of Times And The Worst Of Times: Lessons From Recent Reforms Of The French Retirement, Kathryn L. Moore
Georgia Journal of International & Comparative Law
No abstract provided.
From Chrysler And General Motors To Detroit, 2014 University of Pennsylvania Law School
From Chrysler And General Motors To Detroit, David A. Skeel Jr.
In the past five years, three of the most remarkable bankruptcy cases in American history have come out of Detroit: the bankruptcies of Chrysler and General Motors in 2009, and of Detroit itself in 2012. The principal objective of this Article is simply to show that the Grand Bargain at the heart of the Detroit bankruptcy is the direct offspring of the bankruptcy sale transactions that were used to restructure Chrysler and GM. The proponents of Detroit’s “Grand Bargain” never would have dreamed up the transaction were it not for the federal government-engineered carmaker bankruptcies. The Article’s second ...
Litigating For The Future Of Public Pensions, 2014 SelectedWorks
Litigating For The Future Of Public Pensions, Paul M. Secunda
Paul M. Secunda
Public pensions are horribly unfunded, millions of public employees are being forced to make greater contributions to their pensions, retirees are being forced to take benefit cuts, retirement ages and service requirements are being increased, and the list goes on and on. These alarming developments involve all level of American government, from the recent move to require new federal employees to contribute more to their pensions, to the significant underfunding of state and local public pension funds across the country, to the sad spectacle of the Detroit municipal bankruptcy where the plight of public pensions plays a leading role in ...
What Is A Lien? Lessons From Municipal Bankruptcy, 2014 University of Pennsylvania Law School
What Is A Lien? Lessons From Municipal Bankruptcy, David A. Skeel Jr.
From the outset of Detroit’s bankruptcy, an unlikely set of issues kept coming up: What exactly is a lien? Who has a property interest or its equivalent in bankruptcy? Did general obligation bondholders have special status, due to Detroit’s promise to use its “full faith and credit” for repayment? What about Detroit’s pension beneficiaries, who could point to a provision in the Michigan Constitution stating that accrued pension benefits cannot be diminished or impaired. In this Article, I explore these and related issues that have arisen in Detroit and other recent municipal bankruptcy cases.
Part I of ...
Multiple Myopias, Multiple Selves, And The Under-Saving Problem, Daniel Shaviro
New York University Law and Economics Working Papers
In both public policy debate and the academic literature, there is widespread, though not universal, agreement that millions of Americans are saving too little for their own retirements. If this is true, we could potentially increase such individuals’ welfare through the adoption of policies that resulted in their saving more. A key dilemma, however, is that, unless one understands why people are under-saving, it is hard to evaluate the likely responses to or merits of a given policy.
Possible explanations for systematic under-saving include at least the following: (1) naïve myopia, (2) sophisticated or self-aware myopia, (3) procrastination, or putting ...
A Failure To Supervise: How The Bureaucracy And The Courts Abandoned Their Intended Roles Under Erisa, Lauren R. Roth
Pace Law Review
This Article addresses how courts failed to adequately supervise employers administering pension plans before ERISA. Relying on a number of different legal theories—from an initial theory that pensions were gratuities offered by employers to the recognition that pension promises could create contractual rights—the courts repeatedly found ways to allow employers to promise much and provide little to workers expecting retirement security. In Section III, this Article addresses how Congress failed to create an effective structure for strong bureaucratic enforcement and the bureaucratic agencies with enforcement responsibilities failed to fulfill those functions. Finally, in Section IV, this Article discusses ...
Social Insecurity: A Modest Proposal For Remedying Federal District Court Inconsistency In Social Security Cases, Jonah J. Horwitz
Pace Law Review
This Article addresses a relatively narrow but consequential problem in the system: the inadequacy of federal judicial resolution of appeals from the denial of Social Security disability benefits. It addresses the problem with an equally narrow, and hopefully equally consequential, solution: granting a published district court decision in such a case the power of binding precedent with respect to the judicial district in which the opinion is issued. In so doing, greater uniformity, consistency, fairness, and efficiency would be brought to a process that is badly in need of all.
The Article proceeds in five parts. Part I provides some ...
Are Defined Contribution Pension Plans Fit For Purpose In Retirement?, 2014 Seattle University School of Law
Are Defined Contribution Pension Plans Fit For Purpose In Retirement?, Jeremy R. Cooper
Seattle University Law Review
This Article considers the historical basis for the shift from defined benefit plans to defined contribution plans, the structural and practical shortcomings of defined contribution plans, alternate pension models, and adjustments to existing retirement plan models that may offer a degree of protection to plan contributors. Like the United States, Australia is now realizing the limitations of a defined contribution retirement system insofar as it relates the provision of reliable retirement income for a population with increasing life expectancy. Unlike defined contribution plans, defined benefit plans provide a benefit based typically on time served and a predetermined proportion of either ...
Less Is More: Applying A Modified Reasonable Compensation Standard To Eliminate The Inconsistencies In The Payroll And Net Investment Income Tax Bases, John S. Treu
John S. Treu
The original policy for the implementation of payroll taxes was to impose a tax on wages as both a funding mechanism for, and a limitation to, qualifying for social security. However, the self-employment tax base developed severe inconsistencies with this original policy and among different tax entities by including certain returns on capital investments in the tax base. At present, different payroll tax obligations arise for similarly situated tax payers based solely on the type of entity the owner elects to be taxed as under the check-the-box regulations. These inconsistencies resulted from misguided efforts by congress and the treasury to ...
Financial Security Scorecard: A State-By-State Analysis Of Economic Pressures Facing Future Retirees, 2014 University of Massachusetts Boston
Financial Security Scorecard: A State-By-State Analysis Of Economic Pressures Facing Future Retirees, Christian Weller, Nari Rhee, Carolyn Arcand
Public Policy and Public Affairs Faculty Publication Series
As Americans increasingly worry about their retirement prospects, states play an important and growing role in retirement security policy. States already manage long-term care programs for the elderly through Medicaid. Concerned about the impact of future elder poverty on state and local budgets and their local economies, a number of states are exploring the creation of low-cost and low-risk retirement savings plans for private sector workers who lack access to pensions or 401(k)s on the job. Some states have developed programs to help older workers find work.
This report presents the Financial Security Scorecard, designed to inform state-level ...
Tontine Pensions: A Solution To The State And Local Pension Underfunding Crisis, 2014 University of Oklahoma College of Law
Tontine Pensions: A Solution To The State And Local Pension Underfunding Crisis, Jonathan B. Forman, Michael J. Sabin
Jonathan B. Forman
Tontines are investment vehicles that can be used to provide retirement income. Basically, a tontine is a financial product that combines features of an annuity and a lottery. In a simple tontine, a group of investors pool their money together to buy a portfolio of investments, and, as investors die, their shares are forfeited, with the entire fund going to the last surviving investor. Over the years, this last-survivor-takes-all approach has made for some great fiction. For example, on the television show “Mash,” Colonel Sherman T. Potter, as the last survivor of his World War I unit, got to open ...
La Pensión Familiar En Colombia: ¿Una Solución Al Déficit Pensional Colombiano?, 2014 Latin American and Caribbean Law and Economics Association
La Pensión Familiar En Colombia: ¿Una Solución Al Déficit Pensional Colombiano?, Fernando Castillo Cadena, Ana María Muñoz Segura
Fernando Castillo Cadena
Colombia enacted the “family old-age pension” through Law 1580/12. This pension is not one of exceptional type, which is granted to certain beneficiaries: it is one that tries to expand the coverage of the pension system in a novel way. Thus, the right to a pension no longer will be a product of regular contributions or savings made on an individual basis, but one that will correspond to the sum of efforts made by the couple that makes up a family group. So, in the event that an affiliate not eligible to obtain an old-age pension on an individual ...
Putting Retirement At Risk: Has Financial Risk Exposure Grown Faster For Older Households Than Younger Ones?, 2014 University of Massachusetts Boston
Putting Retirement At Risk: Has Financial Risk Exposure Grown Faster For Older Households Than Younger Ones?, Christian Weller, Sara Bernardo
Gerontology Institute Publications
Financial markets have been characterized by boom and bust cycles since the 1980s, while the responsibility for managing retirement wealth has increasingly shifted onto individual households at the same time. Policymakers and experts have expressed concern over rising risk exposure among older households, who appear to be increasingly exposed to the growing financial risks just as they near retirement. We consider household data from the Federal Reserve’s Survey of Consumer Finances from 1989 to 2010 to analyze the correlation between age and risk exposure. We test if older households’ risk exposure has indeed grown over time, if it has ...
Why Do Retail Investors Make Costly Mistakes? An Experiment On Mutual Fund Choice, 2014 University of Pennsylvania Law School
Why Do Retail Investors Make Costly Mistakes? An Experiment On Mutual Fund Choice, Jill E. Fisch, Tess Wilkinson-Ryan
There is mounting evidence that retail investors make predictable, costly investment mistakes, including underinvestment, naïve diversification, and payment of excessive fund fees. Over the past thirty-five years, however, participant-directed 401(k) plans have largely replaced professionally managed pension plans, requiring unsophisticated retail investors to navigate the financial markets themselves. Policy-makers have struggled with regulatory interventions designed to improve the quality of investment decisions without a clear understanding of the reasons for investor mistakes. Absent such an understanding, it is difficult to design effective regulatory responses.
This article offers a first step in understanding the investor decision-making process. We use an ...
Changes In Form 5498 Reporting And Foreseeable Irs Correction Of Self-Directed Erisa Plan Fiduciary Abuses, David Randall Jenkins
David Randall Jenkins
Two 2012 Tax Court decisions, changes in Form 5498 reporting requirements, and the Form 5500 Amnesty program signal the IRS is on the cusp of a major crackdown on self-directed ERISA plan fiduciary abuses.
How Behavioral Economics Trims Its Sails And Why, 2013 NELLCO
How Behavioral Economics Trims Its Sails And Why, Ryan Bubb, Richard Pildes
New York University Law and Economics Working Papers
This article argues that the preference of behavioral law and economics (BLE) for regulatory approaches that preserve “freedom of choice” has led to incomplete policy analysis and ineffective policy. BLE has been broadly regarded as among the most promising new developments in public policymaking theory and practice. As social science, BLE offers hope that better understanding of actual human behavior will provide a sounder foundation for the design of regulation. As politics, BLE offers a possible political consensus built around minimalist forms of government action commonly known as nudges that preserve freedom of choice. But these two seductive dimensions of ...
Can Pensions Be Restructured In (Detroit’S) Municipal Bankruptcy?, 2013 University of Pennsylvania Law School
Can Pensions Be Restructured In (Detroit’S) Municipal Bankruptcy?, David A. Skeel Jr.
This paper, which was written as a White Paper for the Federalist Society, describes and assesses the question whether public employee pensions can be restructured in bankruptcy, with a particular focus on Detroit. Part I gives a brief overview both of the treatment of pensions under state law, and of the Michigan law governing the Detroit pensions. Part II explains the legal argument for restructuring an underfunded pension in bankruptcy. Part III considers the major federal constitutional objections to restructuring, Part IV discusses arguments based on the Michigan Constitution, and Part V assesses several Chapter 9 arguments against restructuring. None ...
Federalism And Fiduciaries: A New Framework For Protecting State Benefit Funds, 2013 SelectedWorks
Federalism And Fiduciaries: A New Framework For Protecting State Benefit Funds, Richard E. Mendales
Richard E. Mendales
The financial crisis has underlined difficulties faced by states and their subdivisions in paying benefits to their employees. The most spectacular example is Detroit's bankruptcy, but state and local employers across the country face sharp cuts in benefits as their employers fight for solvency. A federal solution such as ERISA is precluded by considerations of federalism and the impracticability of getting major legislation through Congress. This Article proposes an alternative solution: a uniform state code, following other uniform state laws such as the Uniform Commercial Code, that states could adopt to govern both state and local plans. It would ...
Fact Sheet: What Influences Plans To Work After Ages 62 And 65?, 2013 University of Massachusetts Boston
Fact Sheet: What Influences Plans To Work After Ages 62 And 65?, Maximiliane E. Szinovacz, Gerontology Institute, University Of Massachusetts Boston
Gerontology Institute Publications
Timing of retirement and, implicitly, plans to work in later life have great policy relevance. They affect Social Security expenditures, employers’ pension expenditures, as well as labor force supply and demand. In light of the recent recession, it is particularly important to explore whether economic downturns and workers’ financial status influence their later-life work plans. To answer this question, we analyzed data from the nationally representative Health and Retirement Study (HRS), which included questions about expectations to work full-time after age 62 and age 65.
Letter Regarding Pbgc Request For Information On Missing Participants In Individual Account Plans, Federal Register, Vol. 78, No. 120, June 21, 2013, 2013 University of Massachusetts Boston
Letter Regarding Pbgc Request For Information On Missing Participants In Individual Account Plans, Federal Register, Vol. 78, No. 120, June 21, 2013, Ellen A. Bruce, Brian Reilly
Pension Action Center Publications
On August 19, 2013, the Pension Action Center wrote to the Office of the General Counsel of the Pension Benefit Guaranty Corporation in response to their request for comments on the implementation of a new program to deal with benefits of missing participants in terminating individual account plans.