We present empirical evidence which suggests that a big increase in dividend taxation for UK pension funds in July 1997 affected the form in which some UK companies chose to make dividend payments, but otherwise had limited effects on both the level of dividend payments and the level of...

This paper gives a reassessment of the sustainability of the reformed Hungarian pension system with a special focus on whether the introduction of the fully funded pillar in 1998 has led to any improvement in the sustainability of the pension system. After a brief description of the 1997/1998...

The stock market collapse led to political tensions between generations due to the fuzzy definition of the property rights over the pension funds’ wealth. The problem is best resolved by the introduction of generational accounts. Modern consumption and portfolio theory shows that the younger...

Regulators often set value-at-risk (VaR) constraints to limit the portfolio risk of institutional investors. For some investors, notably pension funds, the VaR constraint is enforced over a horizon which is significantly shorter than the investment horizon of the investor. Our paper aims to...

We investigate numerically how indexation of funded pensions for inflation can be differ-entiated across the various groups of fund participants. The pension arrangement is modelledafter the Dutch situation. While the aggregate welfare consequences are small, group-specific consequences are more...

The ratio of pension assets to GDP in Denmark is the highest among OECD countries. Danish pension funds invest more than half of the country's pension wealth in foreign assets, giving rise to exchange rate risks that are managed using financial instruments. We study the currency hedging...

This paper shows optimal asset allocation during these two phases must be different.

Retirement systems are extremely complex social, economic, legal, and organisational structures. The authors of retirement systems are faced with a great number of dilemmas. The pension related expenditure has systematically been increasing in the developed world, also as a percentage of GDP,...

Explaining the growth of funded pension systems is a major project in political economy. Drawing on the financialization and growth models literatures, this is a case study of recent pension fund growth in the Netherlands. Newly digitized data show almost continuous net fund inflows since their...

While macroprudential policy has mostly focused on the role of banks, we argue that pension funds are also important for financial stability. Drawing on previous research on pension funds, we explain how their actions can have a vital impact on other financial institutions as well as on...