Broeders, Dirk
[Verfasser:in]
;
Hilbers, Paul
[Sonstige Person, Familie und Körperschaft];
Rijsbergen, David R.
[Sonstige Person, Familie und Körperschaft]
What Drives Pension Indexation in Turbulent Times? An Empirical Examination of Dutch Pension Funds
Erschienen in:De Nederlandsche Bank Working Paper ; No. 368
Umfang:
1 Online-Ressource (47 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.2202196
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 17, 2013 erstellt
Beschreibung:
This paper identifies the key factors driving indexation in turbulent economic times within defined benefit plans using a unique panel dataset of 166 Dutch pension funds from 2007 to 2010. Key drivers of indexation are the funding ratio, inflation and real wage growth. The type of pension fund and the interest rate exposure are also statistically significant, although the latter effect is nonlinear. The asset allocation has no significant effect on the level of provided indexation as this is already captured by the funding ratio. We also examine the relation between policy ladders and the actual level of provided indexation. This study finds that a policy ladder with an upper limit equal to a 100 percent real funding ratio is able to predict the actual level of indexation more accurately than a ladder with an upper limit based on a pension fund's required funding ratio