TAILIEUCHUNG - Lecture Financial markets and institutions: Chapter 18 - Anthony Saunders, Marcia Millon Cornett

Chapter 18 - Pension funds. This chapter provided an overview of the pension fund industry. Pension funds provide a way of accumulating retirement funds similar to life insurance contracts and mutual funds. Pension funds, however, have a tax advantage in that an employee's contributions to pension funds are exempt from current taxation. | 8- McGraw-Hill/Irwin Chapter Eighteen Pension Funds 18- McGraw-Hill/Irwin Pension Funds Pension funds (PFs) offer savings plans through which participants accumulate tax deferred savings during their working years before withdrawing them in their retirement years funds invested are exempt from current taxation (., during working years) tax payments are not made until funds are withdrawn by the participant (., during retirement) PFs were first established in the . in 1759 to benefit the widows and children of church ministers The first corporate PF was established by American Express Co. in 1875 18- McGraw-Hill/Irwin Pension Funds By 1940 approximately 400 PFs existed most were for employees in the railroad, banking, and public utilities industries By 2007 over 700,000 PFs existed of . households’ financial assets were in PFs compares to just over 5% in 1950 There are two distinct PF sectors private PFs are funds administered by private corporations (., insurance companies or mutual funds) public PFs are funds administered by federal, state, or local governments (., Social Security) 18- McGraw-Hill/Irwin Pension Funds A pension plan governs the operation of a pension fund Pension funds are broadly classified into two categories, defined benefit plans and defined contribution plans A defined benefit PF if a fund in which the employer agrees to provide the employee with a specific cash benefit upon retirement a flat benefit formula PF pays a flat amount for every year of employment a career average formula PF pays benefits based on the employee’s average salary over the entire period of employment a final pay formula PF pays benefits based on a percentage of the average salary during a specified number of years at the end of the employee’s career times the number of years of service 18- McGraw-Hill/Irwin Pension Funds Defined benefit PFs (cont.) a fully funded PF has sufficient funds available to meet all .

• Tài chính doanh nghiệp
• Financial markets
• Financial institutions
• Lecture Financial markets and institutions
• Financial institutions markets
• Pension funds
• Private pension funds
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Capital markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
• Mortgage markets
• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
• Exchange rates
• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation