The Impact of Longevity Improvements on U.S. Corporate Defined Benefit Pension Plans
IMF Working Papers, June 1, 2012
Source details
- Canonical URL
- The Impact of Longevity Improvements on U.S. Corporate Defined Benefit Pension Plans
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Bibliographic details
- Authors: John Kiff, Michael Kisser, Mauricio Soto, S. E Oppers
- Published: June 1, 2012
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475505184.001
Key findings
- Each additional year of life expectancy increases pension liabilities by about 3 to 4 percent.
- Each year of additional life expectancy would increase private U.S. DB pension plan liabilities by as much as $84 billion.
- The effect of longevity improvements on liabilities is described as "statistically highly significant" and economically meaningful.
Methodology and data
- Uses detailed actuarial and financial information provided by the U.S. Department of Labor.
- Constructs a longevity variable for each pension plan and measures the impact of varying life expectancy assumptions across plans and over time on pension plan liabilities.
Scope and subject coverage
- Focus: private U.S. defined benefit (DB) pension plans.
- Subjects listed: Aging, Expenditure, Financial institutions, Health, Insurance, Labor, Pension spending, Pensions, Population and demographics.
- Keywords include: Aging; benefit pension plans; DB pension plan provider; freedom pension plan sponsor; Global; group Annuity mortality table; Individual Annuity mortality table; Insurance; life expectancy; Longevity Risk; Mortality; mortality rate; mortality table; pension liability; Pension Plans; Pension spending; Pensions; WP.