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Risky Assumptions: A closer Look at the Bearing of Investment Risk in Defined-Benefit Pension Plans

Author

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  • James E. Pesando

    (University of Toronto)

Abstract

There is reason to question whether employers bear all – and employees none – of the investment risk in defined-benefit pension plans. So are they just defined-contribution plans in disguise?

Suggested Citation

  • James E. Pesando, 2008. "Risky Assumptions: A closer Look at the Bearing of Investment Risk in Defined-Benefit Pension Plans," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 266, June.
    • Handle: RePEc:cdh:commen:266
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    File URL: https://www.cdhowe.org/public-policy-research/risky-assumptions-closer-look-bearing-investment-risk-defined-benefit-pension-plans
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    References listed on IDEAS

    as
    1. Morley Gunderson & Douglas Hyatt & James E. Pesando, 1992. "Wage-Pension Trade-offs in Collective Agreements," ILR Review, Cornell University, ILR School, vol. 46(1), pages 146-160, October.
    2. Lazear, Edward P, 1979. "Why Is There Mandatory Retirement?," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1261-1284, December.
    3. David Laidler & William B.P. Robson, 2007. "Ill-Defined Benefits: The Uncertain Present and Brighter Future of Employee Pensions in Canada," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 250, June.
    4. James E. Pesando & Morley Gunderson, 1988. "Retirement Incentives Contained in Occupational Pension Plans and Their Implications for the Mandatory Retirement Debate," Canadian Journal of Economics, Canadian Economics Association, vol. 21(2), pages 244-264, May.
    5. William B.P. Robson & Finn Poschmann & Robin Banerjee & Colin Busby & Benjamin Dachis, 2008. "Steering Through Turbulence: The Shadow Federal Budget for 2008," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 111, February.
    6. Jack Selody, 2007. "Vulnerabilities in Defined-Benefit Pension Plans," Discussion Papers 07-3, Bank of Canada.
    7. Colin Busby & William Robson, 2013. "Canada's 2012 Fiscal Accountability Rankings," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 373, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Geoffrey Young, 2012. "Winners and Losers: The Inequities within Government-Sector, Defined-Benefit Pension Plans," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 347, April.
    2. Arthur J. Cockfield, 2008. "Finding Silver Linings in the Storm: An Evaluation of Recent Canada-US Crossborder Developments," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 272, September.
    3. Peter W. Hogg, 2008. "A Question of Parliamentary power: Criminal Law and the Control of Greenhouse Gas Emissions," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 114, August.
    4. David Card & Martin Dooley & A. Abigail Payne, 2008. "School Choice and the Benefits of Competition: Evidence from Ontario," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 115, October.

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    More about this item

    Keywords

    governance and public institutions; pension papers; investment risk;
    All these keywords.

    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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