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The South African pension industry has been regulated by the Financial Advisory and Intermediary Services Act (FAIS,2002) and numerous claims have recently been brought forward by consumers of pension funds. The question arises, and the main reason for the research, is to investigate whether there is a lack of training and education on pension funds by intermediaries, and if in fact it holds true to say that claims that end up at the Ombudsman are in fact due to the lack of education and training by intermediaries. With a regulated Financial Services industry the primary function would be to advise consumers on a needs basis as first priority, and to make sure that they are up to speed with how pension funds work, the rules, and policy contracts. Pension funds should be made easier to understand and there should be no hidden clauses that will lead to consumer complaints. The research methodology was of a quantitative and qualitative nature in order to grasp the reality of the pension industry, to gather data from the intermediaries themselves on whether they lack education and training, and if intermediaries are in fact providing the appropriate training and education to consumers. Critical training was able to assist the researcher to find out what knowledge intermediaries and consumers did have about pension funds and where the gap for training could be found. Franchise Agency group based in KwaZulu-Natal of a multi-national Financial Service Provider was researched using a survey questionnaire approach. Semi-structured interviews from the same group were conducted. Critical training with a group of intermediaries and existing pension fund members on products and rules and benefits of funds was conducted. A training session with an intermediary conducting a presentation to propose a new pension fund was observed. A focus group session of five intermediaries was taped and an array of questions posed to them outlining their views on education and training in the pension industry and assessing their knowledge. / Thesis (MBA)-University of KwaZulu-Natal, Westville, 2006.

Bakgrund: Revideringen av IAS 19 har nu trätt i kraft och denna har betytt att ett antal förändringar har skett i företagens redovisning av förmånsbestämda pensionsplaner. Den del av revideringen som främst varit under debatt är borttagandet av den så kallade korridormetoden. Denna har inneburit att aktuariella vinster och förluster kunnat redovisas endast till en viss del, något som nu inte är möjligt. Nya IAS 19 har redan börjat verka och påverka svenska företag som redovisar enligt IASBs standarder. Men hur vilka effekter och samband går att finna mellan de tidigare metoder som funnits tillgängliga och eget kapital, pensionsskuld och viktiga aktuariella antaganden? Syfte: Syftet med denna uppsats är att undersöka på vilket sätt tidigare års val av metod vid redovisning av förmånsbestämda pensionsplaner påverkat företagens egna kapital i förhållande till dess pensionsskuld, och hur detta påverkats av revideringen av IAS 19. Syftet är vidare att redogöra för hur de undersökta parametrarna utvecklats över tid, inom företagen. Metod: Studien har använt sig av en kvantitativ metod, och insamling av de data som legat till grund för analys och slutsats skedde genom årsredovisningar för de företag som studien omfattade. Slutsats: Det är möjligt att utläsa ett antal trender och tendenser i företagens redovisningar, både före och efter revideringen av IAS 19. Trots detta går inga statistiskt säkerställda samband går att finna mellan de valda parametrarna.

Previous studies on pension provision in Ghana have ignored the impact of the 2008 Pension Reform on the governance and regulatory and solvency risk implications for pension provision in Ghana. The literatures on pension fund investment policy have also ignored the portfolio risk considerations of the absence of a risk-free asset in the domestic currency. However, in many countries, including Ghana, domestic government and corporate bonds carry significant credit risk. This thesis examines three major areas of pension provision in Ghana. Firstly, it examines the implications and challenges of the 2008 Pension Reform for pension provision in Ghana. Secondly, it examines the impact of the 2008 Pension Reform on the solvency and level of pensions of the State Pension Scheme (SPS) in Ghana. Thirdly, it examines the effects of the absence of a risk-free domestic government bond on the investment strategy of a defined benefit pension fund, taking Ghana as an example. The analysis is extended to examine the impact of restrictions placed on pension funds' overseas investments as prescribed by the 2008 Pension Act. It is shown that the inherent weaknesses in Ghana's pension system persist following the 2008 Pension Reforms, that pension provision in Ghana is challenged by several factors, that the governance structure remains broadly unchanged and that further reforms are needed to ensure adequate, equitable and sustainable pensions in Ghana. Several recommendations are made to enhance pension provision in Ghana. Model simulations show that the 2008 Pension Reform has enhanced the level of pensions; however, the reform has worsened the solvency of the SPS, largely as a result of structural and parametric changes affecting the level of contributions. Alternative reform policies are suggested to improve retirement income provision and the solvency of the SPS in Ghana. Analysis using a multi-period asset and liability model indicates that, in the absence of a risk-free domestic government bond and within an adjusted-CAPM framework, the optimal pension fund investment strategy may be a non-corner solution, which requires a higher initial minimum investment. It is found that ignoring the default probability of domestic government debt may lead to serious underestimation of pension fund risks, resulting in an underestimation of the minimum investment requirement. It is also found that the restrictions placed on pension funds' overseas investments, as prescribed by the 2008 Pension Act, impose additional costs on Ghanaian pension funds. JEL Classifications: Asset and Liability Modelling, Adjusted-CAPM, Asset Allocation, Credit Risk, Domestic Government Bonds, Defined Benefit Pension Funds, Default Probability, Economic Scenario Generator, Ghana, Governance, Minimum Investment Required, Overseas Investment Restrictions, Investment Strategy, Longevity Risk, Market Risk, Mortality, Pension Fund Risk, Pension Provision, Pension Policy Review, Pension Population Projection, Pension Reforms, Regulation, Solvency, Stochastic Modelling.

Thesis (Ph.D.)--University of Texas at Dallas, 2008. / Includes vita. Includes bibliographical references (leaves 98-105)

Thesis (doctoral)--Universität Zürich, 1946. / Includes bibliographical references (p. 6-8).

Thesis (B.Com.Hons.) - University of Queensland, 2004. / Includes bibliographical references.

An understanding of the rationale for providing retirement schemes, their principal functions and different methods of financing them is crucial to structuring and implementing sustainable retirement schemes in sub-Saharan African (SSA) countries. The fact is that the structure of economies in this part of the world is very different from that in the developed world, in that an official social net barely exists. In the developed world most countries have some or other a form of provision for retirement for the elderly. They are provided through systems like Pay-As-You-Go (PAYG) or other forms, such as pension and provident funds, social grants, etc. However, the provision of social security in a PAYG system entails costs that are transmitted through generations. These costs arise from the methods governments use to finance the benefits promised to individuals while they are economically active. Generally, government finances the expenditure on social security obligations through current taxes (contributions), which are levied from individuals working at present to pay the benefits to retirees. The assumption is that the population and the economy grow at the same rate. However, the reality is quite different and it often happens that revenue from current contributions is not sufficient to finance the required social security expenditure. This is especially the case where the ageing population is not replaced by a corresponding population growth. Nevertheless, in most Sub-Saharan African Countries (SSA) the ageing of the population does not present an immediate problem. Therefore, the social security systems of these countries constitute different problems than those of the developed world. In the majority of SSA countries, social security faces the problem of outdated legislation with no provision for adjustment of cost of living (real replacement rates are very low) and in some other countries the provision of social security has only recently been implemented. Therefore, there is an urgent need to reform retirement programs in SSA countries, but these reforms do not necessarily imply privatisation and should preferably be implemented within existing programs. An example of reform is the introduction of a principal-agent type of management with clear management rules. To accompany this process, these countries should establish institutions for monitoring and law enforcement. At the same time they should promote the development of financial and capital markets as a necessary condition for having sustainable and attractive retirement programs. Factors like underdeveloped financial and capital markets, adverse selection problems Factors like underdeveloped financial and capital markets, adverse selection problems (intensified by low literacy rates (on average less than 54 per cent)), moral hazard and low per capita income, prevent the majority of the populations in SSA countries to find alternative ways of saving for retirement. Moreover, the growing migration of the young population in search of better living conditions has weakened the traditional or safe family social security structures and therefore, worsened the socio-economic conditions of the elderly population, especially in the rural areas. The growing and prosperous informal sector also has to be considered when policymakers rethink social security in the African continent. The need for policymakers in the African continent to rethink current social security structures is fuelled by research results confirming that social security plays an important role in the performance of economies. World Bank reports in 1994 in particular, proposed different ways of managing retirement programs and a three pillars system was suggested. One possibility is a system managed by government (similar to the present PAYG system), the second privately managed (individual accounts) and the third voluntary saving (personal saving through financial institutions, real estates, etc.). However, the debate regarding proposed reforms continues and it seems that the optimal solution is still to be devised. Research indicates that in the case of SSA countries, it is recommended that reforms start within existing systems. There are various reasons for this idea. Firstly, due to the high uncertainty of output, new systems could have far reaching macroeconomic implications. Secondly, microeconomic effects on the demand side of the economy could influence the labour market due to the availability of abundant and cheap labour. Thirdly, bailout politics are abundant in many SSA countries, which may weaken privately managed social security programs (like individual accounts). This study analysed 14 SSA countries using panel data. The results indicate that social security programs positively affect saving in the SADC countries, but in West Africa and the full country sample, savings is affected negatively. These results have important policy implications in that West African countries need to reform their current social security systems in such a way, that they contribute to saving and the development of financial and capital markets. In the SADC countries, however, more emphasis should be placed on the development of financial and capital markets. The study finds adverse results in the growth model. In the pooled model social security crowds-out growth in per capita GDP in West African countries, but it crowds-in growth in per capita GDP in the SADC countries as well as in the full country sample. These results confirm the findings of other studies namely that no conclusive results exist with regard to the effect of social security on the performance of economies. <p.The model results indicate that social security has a positive effect on fertility. Thus, the results contrast the widely accepted claim that social security reduces fertility on the basis that parents tend to rely less on children as a source of income during their retirement if the social net takes care of them. This phenomenon could be caused by the perception that social security in its current format in SSA countries does not have the potential to replace children as a source of income during retirement. Another factor that may influence thisvii result is because of low coverage rates, the preference of many excluded individuals, mainly in the rural areas and informal sector, is still to rely on their children as a source of old age security. Finally, the study concludes that in sub-Saharan African countries policymakers have to pay more attention to institutional arrangements that would accommodate the implementation of a proper social security system. The starting point should be reforms of existing retirement schemes. Reforms should be initiated within the existing schemes, through the introduction of the principal-agent management model with strong regulation and monitoring to ensure sound management principles. The informal sector poses a major challenge and should be included in a social security system also allowing competition from possible providers of social security products to the informal sector. The redesign of retirement schemes should be aimed at regional integration with scale economies to be captured both at country and regional levels. This implies that the number of operators in the industry should also be considered to avoid excessive costs related to marketing and the administration of the funds. Another important conclusion is that retirement reform programs should form part of the overall strategies of poverty alleviation currently being implemented in many sub-Saharan countries. / Thesis (PhD (Economics))--University of Pretoria, 2008. / Economics / PhD / unrestricted

To what extent does the Price to Earnings Ratio affect the investment decisions of those who manage Trusteed Pension Funds in Canada? Secondly: What are the dangers of ignoring this index when trading in common stocks for pension plans? METHODOLOGY A complete study of Canadian pension funds and the methods of funding was made in order to get a thorough understanding of pensions in Canada. Trusteed pensions fall into two categories: - the Money Purchase Plans. - the Definite Benefit Plans. The Trusteed pension was studied from the point of view of costs and benefits, emphasizing the importance of investment yields. A study of the Price Earnings Ratio per se., was made. The study includes the examination of accounting methods used to determine earnings per share. The next step was to determine and understand the relationship of the Price Earnings Ratio to corporate growth. A further step was to determine the variables contributing to sustained corporate growth. A study of the usefulness of the Price Earnings Ratio as a valuation tool was made, based on the works of leading writers in this field. The use made of the Price Earnings Ratio by investment managers in practice was examined, as well as the whole decision making process. This was achieved through personal interviews and by questionnaires. From the information received, a summary was prepared on the decision making process and the role of the Price Earnings Ratio in that process. Various data concerning pension portfolio stocks, Price Earnings Ratios and performance, was collected and summarized in the appendices. CONCLUSIONS It was concluded that: - Considering the cost of a pension, the two most important variables are expense and earnings; of the two, investment yield or earnings has the greatest effect on reducing costs. - In determining earnings per share, not only primary E.P.S. but also fully diluted E.P.S. should be determined and compared. - The Price Earnings Ratio is a concept consistent with the present value formulae and assumes combinations of earnings, growth, duration, discount and dividend payouts. It is important that investment managers understand this. - Sustainable growth is dependent primarily on margin, turnover, leverage and taxes. - Statistical studies have shown that low Price Earnings Ratio stocks consistently outperform high Price Earnings Ratio stocks. - The decision making process places great emphasis on Fundamental Analysis and the Price Earnings Ratio. - When considering the Price Earnings Ratio, the analyst will study it in relation to the popular indices, other companies in the industry and in relation to the companies projected growth rates. RECOMMENDATIONS Unless there is strong evidence to the contrary, a stock with a low Price Earnings Ratio should be purchased in preference to a stock with a high Price Earnings Ratio, particularly if the stock meets these conditions: - A consistently high earnings record in past years. - There is no evidence of an earnings decline in future years. - The quality of management is high. - There is a relatively high margin and turnover. / Business, Sauder School of / Graduate