Using defined contributions to sift for higher quality workers

Article Abstract:

The productivity effects of defined benefit pensions have been the subject of many studies. Such an inquiry into the productivity effects of this type of employee benefit has given rise to the more specific concern of whether defined contribution plans could function as a 'sorting model' for defining high-quality employees. Using the 'sorting model' to assess the impact of a worker's discount rate, it was found that there exists a natural correlation between workers' internal discount rates and their value to the firm, creating an economic role for defined contribution plans in organizations.

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Issues surrounding cash balance plans

Article Abstract:

The author contends that the establishment of the reversion tax, a public policy that resulted in an effect that was the opposite of what was intended, best explains conversions to cash balance plans. He notes that issues raised by cash balance conversions are not any different from those raised by the plan terminations that the reversion tax tried to contain.

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The impact of shifting to a personal consumption tax on pension plans and their beneficiaries

Article Abstract:

Some observers support supplanting the U.S. income tax system with a consumption tax to boost savings. The author contends that a consumption tax would have a deleterious effect on the private pension system and suggests some optional approaches for boosting US savings.

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