Administrative charges for funded pensions: Measurement concepts and international comparison and assessment

Whitehouse, Edward

doi:10.3790/schm.120.3.311

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Whitehouse, E. Administrative charges for funded pensions: Measurement concepts and international comparison and assessment. Journal of Contextual Economics – Schmollers Jahrbuch, 120(3), 311-361. https://doi.org/10.3790/schm.120.3.311

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Administrative charges for funded pensions: Measurement concepts and international comparison and assessment

Whitehouse, Edward

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 120 (2000), Iss. 3 : pp. 311–361

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Publisher Name: Duncker & Humblot
DOI: https://doi.org/10.3790/schm.120.3.311
Language: Multiple languages
Pages: 51

Whitehouse, Edward

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Abstract

Pension fund charges reduce the rate of return on pension accounts in some countries by up to two percentage points. Do charges of this scale undermine the case for funded pension provision? How can governments hold back costs and charges? This paper looks at evidence from different countries, with policies ranging from complete liberalization of charge levels of structures to government imposed charge ceilings. The author stresses the trade-offs in limiting charges, especially in reduced competition and choice.

Section Title	Page	Action	Price
Edward Whitehouse: Administrative charges for funded pensions:\rMeasurement concepts and international\rcomparison and assessment	311
Abstract	311
Zusammenfassung	311
1. Pension fund institutional structures and charges	313
2. Measuring charges	316
2.1 A formal analysis of administrative charges	317
2.2 Alternative measures of charges	318
2.3 Empirical comparisons	319
2.4 Robustness of charge measures to changes in assumptions: rate of return	320
2.5 Robustness of charge measures to changes in assumptions: earnings	322
2.6 Robustness of reduction in yield measure with contribution-based levies	323
2.7 Charge measures and duration of the pension policy	325
2.8 Gaps in contribution profiles	327
2.9 Conclusion: which is the appropriate measure of charges?	328
3. International comparison of charge levels	329
3.1 Australia	330
3.2 Sweden	332
3.3 United Kingdom	334
4. Strategies to control charges in funded pension systems	342
4.1 Improving transparency	343
4.2 Restricting charge structures	343
4.3 Restricting charge levels	345
4.4 Cross-subsidies to low-income workers	347
5. Strategies to control costs of funded pension systems	349
5.1 Alternative institutional arrangements for funded pension systems	349
5.2 Economies of scale: some evidence	350
5.3 Constraining portfolios	352
6. Conclusions	353
Bibliography	354

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Administrative charges for funded pensions: Measurement concepts and international comparison and assessment

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