Sentences with phrase «pension plan assumptions»

Those pension plan assumptions are the basis for consequential financial decisions about how much the state or city needs to save today in order to pay benefits in the future.

Based on our calculations from state pension plan assumptions, the median state assumes that only 23 percent of teachers will stay for at least 24 years.

In our recent paper «Friends without Benefits,» we used pension plan assumptions for all 50 states and the District of Columbia to estimate that more than half of all teachers won't qualify for even a minimal pension.

Regardless of whether I use the pension plan assumptions or the actual turnover rate, the lines show that half of all new teachers will not reach ten years of service and will not qualify for a retirement benefit.

The opacity argument may explain part of Oregon's extreme situation, but it doesn't explain results like the one in St. Louis, or what we see in state pension plan assumptions around vesting periods.

Click here to see the page in EK's 10 - K that shows the pension plan assumptions.

Better yet, look for management with shady reputations and who constantly tweak the rate of depreciation or pension plan assumptions to manage reported results.

Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities for growth and innovation; (4) future timing and levels of indebtedness, including indebtedness expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies» shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.

Not exact matches

Risky Assumptions: A Closer Risk at Bearing Investment Risk in Defined Benefit Pension Plans.

Number - crunching a pension plan payout election or number - crunching a 401 (k) «payout sustainability» amount are calculations that need to be tailored to the needs of the individual and their comfort level regarding the assumptions used in analyzing the decision options so we won't explore those calculations here.

Changes in actuarial assumptions (i.e. the discount rate and expected return on plan assets) can cause big swings in total reported net pension liabilities.

The median public pension plan's investments returned about 1 % in 2016, far below the median assumption of 7.5 %.

«I believe the real devil here is in your assumptions, because the plan's true costs are as yet unknown and depend heavily on the performance of the State's pension fund.»

We first look at early - career teachers» behavior when they become vested in their state's pension plan, by reviewing state assumptions about teacher withdrawal rates.

Despite the widely held belief that pensions entice teachers to stay on the job, we find that states base the financial health of their plans on the opposite assumption.

We reviewed pension plans and projections in all 50 states, looking specifically at state assumptions about teacher behavior at two inflection points: early career, when they become eligible for minimal pension benefits, and late career, when they become eligible for full pension benefits.

In our recent Education Next report, «Why Most Teachers Get a Bad Deal on Pensions,» my colleague Kelly Robson and I analyzed state pension plan turnover assumptions to look at two key milestones, the point when teachers first qualify for a pension, and when they become eligible for normal retirement.

Even more, there is growing awareness that pension plan reports are based on actuarial assumptions that make their financial conditions appear better than they actually are.

All defined benefit pension plans make assumptions.

Actuarial Miscalculations and Demographic Changes: Pension plan valuations depend on assumptions about a host of factors like how much employees will earn, how long they'll stay, how long they'll live in retirement, etc..

Using the pension plan's own interest assumptions (often 8 percent), in half of states teachers need to stay in a single system for at least 24 years to simply break even on their contributions plus interest.

In their new report, they try to argue that traditional defined benefit pension plans are better for charter school teachers than 401k - style plans, but in the process they make some glaringly misleading assumptions.

But in a new article for Education Next, Chad Aldeman and Kelly Robson of Bellwether Education Partners find that despite the widely held belief that pensions entice teachers to stay on the job, states base the financial health of their pension plans on the opposite assumption: they rely on high rates of teacher turnover in order to balance the books.

The following chart shows the retention data calculated based upon the state pension plan's assumptions for 25 - year - old female teachers in Michigan.

Because these withdrawal assumptions are tied to large financial decisions, pension plans conduct regular «experience studies» to check their assumptions and compare their expectations with actual teacher turnover rates.

- Early - Career Teachers: Using the pension plan's assumptions for retention, the average first - year teacher in 2009 had less than a 50 - 50 chance of making it to 2020.

I calculated the assumed real rates of return of state teacher pension plans by subtracting their inflation assumption from their investment return assumption.

In order to estimate how much money they'll need to pay benefits down the road, pension plans make assumptions about how long teachers will stay in the profession.

While states and cities are spending a lot of money on back - end incentives like this, their own pension plans don't think it's worth altering their assumptions to account for them.

This is a much less incremental approach than the assumptions North Carolina uses, which makes it even more obvious that New York City's salary bumps at years 10, 13, 15, 18, 20, and 22 are not doing enough to shape teacher behavior to warrant adjusting the pension plan's assumptions.

Even under current assumptions, there's no disputing that teacher pension plans are expensive, and the majority of today's teachers are not receiving the benefits of those contributions.

When the Society of Actuaries updated their mortality assumptions, commonly used by pension plans to estimate future payments, they anticipated that pensions could expect up to a 7 or 8 percent increase in liabilities.

There's also a significant delay between actual trends in the workforce and when pension plans update their mortality assumptions.

In our recent paper, «Friends Without Benefits: How States Systematically Shortchange Teachers» Retirement and Threaten Their Retirement Security,» we used pension - plan assumptions for all 50 states and the District of Columbia to estimate that, in the median state, more than half of all teachers won't qualify for even a minimal pension.

According to Chicago Teacher Pension Fund (CTPF) plan assumptions, over half (57 percent) of new Chicago teachers will leave before the 10 - year service requirement, meaning less than half of new teachers will qualify for a pension benefit Pension Fund (CTPF) plan assumptions, over half (57 percent) of new Chicago teachers will leave before the 10 - year service requirement, meaning less than half of new teachers will qualify for a pension benefit pension benefit at all.

Every pension plan publishes these assumptions in their financial reports, and they conduct regular «experience studies» to see if their assumptions are correct or if they need adjustments.

Any Canadian eligible for the Canada Pension Plan (about 95 % of us are) can start to receive it when they turn 60, even though the government bases their rules on the assumption you will take it when you turn 65.

I marveled at the degree of flexibility that pension actuaries had in setting investment assumptions (and future earnings assumptions), and the degree to which funding was back - end loaded to many plan sponsors.

A new report from the C.D. Howe Institute warns the new, expanded version of the Canada Pension Plan is designed on investment return assumptions that could jeopardize future payments.

Continuing under the assumption that you have a defined benefit pension plan that will pay you $ 50,000 per year until you pass away I would say that your pension plan is more similar to a life annuity rather than a GIC since a GIC comes to term whereas an annuity pays until death, but if you are trying to put a value on the holding of your pension plan I would say that yes, it is fair to count it as a million dollar GIC at 5 %.

After 10 - 11 years, the variable is useless, so if I were put in charge of setting stock market earnings assumptions for a pension plan, I would do it as a step function, 6 % for the next 10 years, and 9.5 % per year thereafter... or in place of 9.5 % whatever your estimate is for what the market should return normally.

In the section on retirement planning, the couple made some assumptions: that Walter remains employed as a physiotherapist and stays in the hospital's defined benefit pension plan until age 60, and that Patty continues working part time earning $ 30,000 a year as a social worker.

Private client wealth planning goals, endowment and foundation spending rates, and pension return on plan asset assumptions, all rely on sound capital market return assumptions.

A DB pension that includes a bridge benefit prior to age 65 is a way that some pension plans front - end load the pension on the assumption that most people don't start other pensions like CPP or Old Age Security (OAS) until age 65.

The court decided the bonus amount was not covered by the contribution amount, and indicated a pension plan must be interpreted according to its main purpose which is to provide a pension funded on actuarial assumptions fair to all employee beneficiaries under the plan.

Conversely, if the underlying mortality assumption is too high, the actuary may underestimate life expectancies of the pension - plan members and hence the long - term obligations of the pension fund.

Before Simon's share purchase disclosure last year, Macerich said it bought the share of five U.S. shopping malls it didn't already own from a subsidiary of the Ontario Teachers» Pension Plan Board for $ 1.89 billion, including the assumption of debt.