Defining the Characteristics of the 21st Century Retirement System

Crystal Gateway Marriot, Washington, DC

November 17-18, 2008


Monday, November 17, 2008

Opening Remarks

Cindy Levering, Emily Kessler


Changing Signals in Social Insurance & Beyond?

Moderator: Jean Claude Menard
Presenter: John Turner

The concept of changing signals is introduced in the context of social insurance systems in several countries. In particular, signaling through the early retirement age provisions is explored. Key discussion points include lessons learned in terms of signaling and the potential for similar approaches in private systems.


Why Sweden’s Pension Reform was able to be Successfully Implemented
Jan Selén, Trade Union Institute for Economic Research (Sweden)
Ann-Charlotte Ståhlberg, Professor of Economics and Social Insurance, Swedish Institute for Social Research (SOFI)

This paper was published in the European Journal of Political Economy 23 (2007) 1175-1184.

Retirement Age Signaling and Social Security's Early Retirement Age: A Comparison of Eleven Countries (Paper to be completed after conference.)
Yung-Ping (Bing) Chen, Ph.D., Frank J. Manning Eminent Scholar's Chair in Gerontology, University of Massachusetts Boston
John Turner, Ph.D., Pension Policy Consultant


Changing Signals & Second Tier Systems

Moderator: Rob Brown
Presenters: Enrique Fatas, Jon Forman, Anna Rappaport

The topic of changing signals is taken into second tier systems, looking at whether the existing retirement age systems should change, or whether those ought to even exist. We also consider whether signaling can be used to delay the retirement decision.


Optimal Retirement Age
Jonathan (Jon) Barry Forman, Alfred P. Murrah Professor of Law, University of Oklahoma
Yung-Ping (Bing) Chen, Ph.D., Frank J. Manning Eminent Scholar's Chair in Gerontology, University of Massachusetts Boston

Signals, Retirement Options, Phased Retirement and Retirement Decisions
Anna Rappaport, FSA, MAAA, Anna Rappaport Consulting

Summary Overview Paper: Experimental Analysis of Retirement
Enrique Fatas, Juan Lacomba, Francisco Lagos, Ana Moro

An Experimental Test on Retirement Decisions
Enrique Fatas, LINEEX Director, University of Valencia
Juan Lacomba Assistant Professor, LINEEX and University of Granada
Francisco Lagos Assistant Professor, LINEEX and University of Granada

An Experimental Test on Dynamic Consumption and Lump-Sum Pensions
Enrique Fatas, Juan Lacomba, Francisco Lagos, Ana Moro


Default Distributions

Moderator; G. A. (Sandy) Mackenzie
Presenters: Beverly J. Orth, Albert J. Dal Porto, Anna Rappaport

Clear information is important to individuals making retirement choices, but individuals also make better choices when there are better defaults. Speakers will consider how choice is made, what information strengthens that choice, and how default options can be used to achieve optimal outcomes.


The Role of Information and Expectations in Retirement Planning - Communicating Income vs. Lump Sums; Retirement Options
Anna Rappaport, FSA, MAAA, Anna Rappaport Consulting

Approaches for Promoting Voluntary Annuitization
Beverly J. Orth, J.D., FSA, Mercer

Optimal Strategies for Distribution of Retirement Income Resources (Paper to be completed after conference)
Albert J. Dal Porto, FSA, MAAA, Ernst & Young


Completing Markets: What is Needed to Improve Retirement Risk Hedging? (Panel Discussion)

Moderator: Emily Kessler
Presenters: Brett Hammond, Michael Ashton, Jeremy Gold

One of the challenges facing retirement innovation is the lack of available hedging instruments for those designing plans or products to meet retirement financial needs. This session will focus on how we might create the financial building blocks necessary for a strong retirement system. We’ll consider the experience with the creation of inflation linked bonds, and how lessons learned there might translate into the retirement market. Panelists will also discuss the possibilities for completing markets, including whether government should play a role.


Tuesday, November 18, 2008

Self Adjusting Mechanisms in Private Sector Plans

Moderator: Charlene Moriarty
Presenters: Doug Andrews, William Hallmark

Are self-adjusting mechanisms appropriate for second tier plans? How would they work, and how do they change the risk and rewards for participants? Speakers consider whether self-adjusting mechanisms could be adapted to tier-two plans, focusing on the defined benefit plan.


Are Automatic Balancing Mechanisms Appropriate for Private Sector Defined Benefit Pension Plans?
Doug Andrews, MBA, FCIA, FSA, CFA, University of Southampton

New Retirement Plan Designs for the 21st Century
Bill Hallmark, ASA, EA, MAAA, Mercer
Beverly J. Orth, J.D., FSA, Mercer


Self Adjusting Mechanisms: From Vision to Reality

Presenters: Wim Koeleman, Keith Ambachtsheer, Cindy Levering, Emily Kessler

Our speakers will discuss the Dutch experience with self-adjusting industry plans and evaluate the applicability of their experience to our North American situation. In addition, we will preview the Retirement 20/20 Measurement Framework to evaluate the Dutch system.


Keynote Luncheon: How Lessons from Behavioral Finance Apply to New Retirement Systems

Presenter: Brigitte Madrian


Self Adjusting: What’s Possible (Panel Discussion)

Moderator: Dave Sandberg
Presenters: Barbara Zvan, Robert Brown

The financial risks in retirement are numerous, including inflation, investment return and longevity. Which risks are better handled with self-adjusting mechanisms, and which are better hedged? Where does self-adjustment help evolve retirement systems, and where does it lead to confusion?



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