Misplaced Pages

#960039

73-526: Imagem Music Group was a Dutch music publisher. The company was founded in 2008 by the Dutch firm Stichting Pensioenfonds ABP , one of the world's largest pension funds, in conjunction with the independent publisher and media company CP Masters BV. It began by acquiring European music publishing rights in a number of catalogues sold by Universal Music Publishing Group after its acquisition of BMG Music Publishing , such as Rondor UK, Zomba UK, 19 Music, 19 Songs, &

146-613: A benefit for an employee upon that employee's retirement is a defined benefit plan. In the U.S., corporate defined benefit plans, along with many other types of defined benefit plans, are governed by the Employee Retirement Income Security Act of 1974 (ERISA). In the United Kingdom , benefits are typically indexed for inflation (known as Retail Prices Index (RPI)) as required by law for registered pension plans. Inflation during an employee's retirement affects

219-591: A Manhattan-based company. As part of the deal, Imagem acquired the Rodgers & Hammerstein Organization and retained its management. Stichting Pensioenfonds ABP ABP's predecessor, the Algemeen Burgerlijk Pensioenfonds ("Dutch Civil Servants Pension Fund"), was established in 1922, following the adoption of the superannuation act, which regulated the pensions of civil servants. Originally,

292-453: A defined contribution plan depends upon the account balance at the time an employee is looking to use the assets. So, for this arrangement, the contribution is known but the benefit is unknown (until calculated). Despite the fact that the participant in a defined contribution plan typically has control over investment decisions, the plan sponsor retains a significant degree of fiduciary responsibility over investment of plan assets, including

365-496: A defined-benefit social security system, but is more controversial when applied to high levels of professional income. Why should younger generations pay for executive pensions which they themselves are unsure of collecting?  Employers have sought ways of getting round this problem through pre-funding, but in civil-law countries have often been limited by the legal vehicles available. A suitable legal vehicle should ideally have three qualities. First, it should convince employees that

438-452: A fund towards meeting the benefits. All plans must be funded in some way, even if they are pay-as-you-go, so this type of plan is more accurately known as pre-funded or fully-funded . The future returns on the investments, and the future benefits to be paid, are not known in advance, so there is no guarantee that a given level of contributions will be enough to meet the benefits. Typically, the contributions to be paid are regularly reviewed in

511-438: A new breed of collective risk sharing schemes where plan members pool their contributions and to a greater or less extent share the investment and longevity risk . There are multiple naming conventions for these plans reflecting the fact that the future payouts are a target or ambition of the plan sponsor rather than a guarantee, common naming conventions include: Defined contribution pensions, by definition, are funded, as

584-407: A portion of the employee's contributions to be matched by the employer. In exchange, the funds in such plans may not be withdrawn by the investor prior to reaching a certain age—typically the year the employee reaches 59.5 years old (with a small number of exceptions)—without incurring a substantial penalty. Advocates of defined contribution plans point out that each employee has the ability to tailor

657-455: A similar stream of payments. The common use of the term pension is to describe the payments a person receives upon retirement, usually under predetermined legal or contractual terms. A recipient of a retirement pension is known as a pensioner or retiree . A retirement plan is an arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment. Often retirement plans require both

730-472: A specific amount of income throughout their retirement years. However this income is not usually guaranteed to keep up with inflation, so its purchasing power may decline over the years. On the other hand, defined contribution plans are dependent upon the amount of money contributed and the performance of the investment vehicles used. Employees are responsible for ensuring that their contributions are sufficient to provide for their retirement needs, and they face

803-627: A spinoff of their investment management businesses. The two pension funds coordinate their activities in private equity through AlpInvest Partners , one of the largest investors globally in the private equity asset class. Recently, AlpInvest Partners was acquired by the Carlyle group. In January 2014, Dutch newspaper Trouw reported that ABP acknowledged continuing their investment in Israeli banks Bank Hapoalim , Bank Leumi , and Bank Mizrahi-Tefahot , each of which fund Israeli settlement construction in

SECTION 10

#1732873320961

876-574: A tax break depending on the country and plan type. For example, Canadians have the option to open a registered retirement savings plan (RRSP), as well as a range of employee and state pension programs. This plan allows contributions to this account to be marked as un-taxable income and remain un-taxed until withdrawal. Most countries' governments will provide advice on pension schemes. Social and state pensions depend largely upon legislation for their sustainability. Some have identified funds, but these hold essentially government bonds—a form of " IOU " by

949-815: A tiered system. For a simplified example, suppose there are three employees that pay into a state pension system: Sam, Veronica, and Jessica. The state pension system has three tiers: Tier I, Tier II, and Tier III. These three tiers are based on the employee's hire date (i.e. Tier I covers 1 January 1980 (and before) to 1 January 1995, Tier II 2 January 1995 to 1 January 2010, and Tier III 1 January 2010 to present) and have different benefit provisions (e.g. Tier I employees can retire at age 50 with 80% benefits or wait until 55 with full benefits, Tier II employees can retire at age 55 with 80% benefits or wait until 60 for full benefits, Tier III employees can retire at age 65 with full benefits). Therefore, Sam, hired in June 1983, would be subject to

1022-409: A valuation of the plan's assets and liabilities, carried out by an actuary to ensure that the pension fund will meet future payment obligations. This means that in a defined benefit pension, investment risk and investment rewards are typically assumed by the sponsor/employer and not by the individual. If a plan is not well-funded, the plan sponsor may not have the financial resources to continue funding

1095-658: Is a "contribution based" benefit, and depends on an individual's contribution history. For examples, see National Insurance in the UK, or Social Security in the United States of America. Many countries have also put in place a " social pension ". These are regular, tax-funded non-contributory cash transfers paid to older people. Over 80 countries have social pensions. Some are universal benefits, given to all older people regardless of income, assets or employment record. Examples of universal pensions include New Zealand Superannuation and

1168-443: Is a 38-person alternative investment manager that oversees $ 20 billion in absolute return investments strategies for institutional clients. Founded in 2003 by Ira Handler, the firm began as the exclusive, non-discretionary advisors to APG Investments. In 2020, NHC expanded to a multi-client model and is now led by Chief Executive Officer Scott Radke and Chief Investment Officer Michael Jacobellis. AlpInvest Partners , founded in 1999

1241-401: Is a plan in which workers accrue pension rights during their time at a firm and upon retirement the firm pays them a benefit that is a function of that worker's tenure at the firm and of their earnings. In other words, a DB plan is a plan in which the benefit on retirement is determined by a set formula, rather than depending on investment returns. Government pensions such as Social Security in

1314-415: Is a type of employment-based Pension in the UK. The 401(k) is the iconic self-funded retirement plan that many Americans rely on for much of their retirement income; these sometimes include money from an employer, but are usually mostly or entirely funded by the individual using an elaborate scheme where money from the employee's paycheck is withheld, at their direction, to be contributed by their employer to

1387-465: Is also criticized for investing in Israeli banks that fund Israeli settlement construction in the occupied Palestinian territories, which considered illegal under international law. Pension#Defined benefit plans A pension ( / ˈ p ɛ n ʃ ən / ; from Latin pensiō  'payment') is a fund into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support

1460-516: Is legally no different from the portability of defined benefit plans. However, because of the cost of administration and ease of determining the plan sponsor's liability for defined contribution plans (you do not need to pay an actuary to calculate the lump sum equivalent that you do for defined benefit plans) in practice, defined contribution plans have become generally portable. In a defined contribution plan, investment risk and investment rewards are assumed by each individual/employee/retiree and not by

1533-553: Is the exclusive manager of private equity investments for APG and fellow Dutch pension group Stichting Pensioenfonds Zorg en Welzijn . AlpInvest is one of the largest private equity investment managers globally with over €40 billion (approximately $ 50 billion) under management at the end of 2007. AlpInvest has offices in Amsterdam , New York City , Hong Kong and London with over 60 investment professionals and over 100 employees. AlpInvest pursues investment opportunities across

SECTION 20

#1732873320961

1606-480: The Medal of Honor qualify for a separate stipend. Retirement pay for military members in the reserve and US National Guard is based on a point system. Many countries have created funds for their citizens and residents to provide income when they retire (or in some cases become disabled). Typically this requires payments throughout the citizen's working life in order to qualify for benefits later on. A basic state pension

1679-556: The Work and Income (Ability to Work) Act (WIA); ABP can supplement these benefits with an incapacity pension. Since 1 January 2004, ABP pensions are based on average salaries during the course of the pensioners’ careers. This is known as an average-salary scheme . As a transition measure, benefits accrued before 2004 are based on the salary on 1 January 2004. Only members of the armed forces now have pensions based on their final salaries. Both contributions and accrual of benefits are based on

1752-445: The "Bradley Commission") in 1955–56. Pensions may extend past the death of the veteran himself, continuing to be paid to the widow. In the U.S., retired military receive a military retirement pay , not called a "pension" as they can be recalled to active duty at any time. Military retirement pay is calculated on number of years on active duty, final pay grade and the retirement system in place when they entered service. Members awarded

1825-428: The "guarantee" made to employees is that specified (defined) contributions will be made during an individual's working life. There are many ways to finance a pension and save for retirement. Pension plans can be set up by an employer, matching a monetary contribution each month, by the state or personally through a pension scheme with a financial institution, such as a bank or brokerage firm. Pension plans often come with

1898-730: The BBC catalog; the sale was worth 140 million euros (US$ 221.5 million). These were sold by Universal after the European Commission ordered the sell-off as a condition of its merger with BMG 's publishing arm. This was followed by acquiring the world's leading classical music publishing company Boosey & Hawkes in 2008 and Rodgers & Hammerstein Organization in 2009. On June 2, 2017, Concord announced that it would acquire Imagem for $ 500 million. The deal included 250,000 compositions, and tripled Concord's number of publishing copyrights. With

1971-620: The Basic Retirement Pension of Mauritius . Most social pensions, though, are means-tested, such as Supplemental Security Income in the United States of America or the "older person's grant" in South Africa . Some pension plans will provide for members in the event they suffer a disability . This may take the form of early entry into a retirement plan for a disabled member below the normal retirement age. The benefits of defined benefit and defined contribution plans differ based on

2044-553: The Board . The pensions supplement statutory benefits such as the old age pension AOW , surviving dependents' pension, and incapacity benefits. If the participant stops working between the ages of 60 and 70, they receive the ABP Multi-Option Pension. If the participant dies, their partner and children may receive an ABP Survivor's Pension. If the participant becomes unfit for work, the government will pay incapacity benefits under

2117-459: The Netherlands ($ 1.8T), Japan ($ 1.7T), Switzerland ($ 1.1T), Denmark ($ 0.8T), Sweden, Brazil and S. Korea (each $ 0.5T), Germany, France, Israel, P.R. China, Mexico, Italy, Chile, Belgium, Spain and Finland (each roughly $ 0.2T), etc. Without the vast body of common law to draw upon, statutory trusts tend to be more uniform and tightly regulated. However, pension assets alone are not a useful guide to

2190-660: The Social Security Reserve Fund and France set up the Pensions Reserve Fund ; in Canada the wage-based retirement plan (CPP) is partially funded, with assets managed by the CPP Investment Board while the U.S. Social Security system is partially funded by investment in special U.S. Treasury Bonds. In a funded plan, contributions from the employer, and sometimes also from plan members, are invested in

2263-407: The U.S. since the 1990s. Cash balance plans, for example, provide a guaranteed benefit like a defined benefit plan, but the benefit is expressed as an account balance, like a defined contribution plan. Pension equity plans are a type of cash balance plan that credits employee accounts with a percentage of their pay each year, similar to a defined contribution plan. A Defined Benefit (DB) pension plan

Imagem - Misplaced Pages Continue

2336-477: The US, defined contribution plans are subject to IRS limits on how much can be contributed, known as the section 415 limit. In 2009, the total deferral amount, including employee contribution plus employer contribution, was limited to $ 49,000 or 100% of compensation, whichever is less. The employee-only limit in 2009 was $ 16,500 with a $ 5,500 catch-up. These numbers usually increase each year and are indexed to compensate for

2409-425: The United States are a type of defined benefit pension plan. Traditionally, defined benefit plans for employers have been administered by institutions which exist specifically for that purpose, by large businesses, or, for government workers, by the government itself. A traditional form of defined benefit plan is the final salary plan, under which the pension paid is equal to the number of years worked, multiplied by

2482-505: The United States include individual retirement accounts (IRAs) and 401(k) plans . In such plans, the employee is responsible, to one degree or another, for selecting the types of investments toward which the funds in the retirement plan are allocated. This may range from choosing one of a small number of pre-determined mutual funds to selecting individual stocks or other financial assets. Most self-directed retirement plans are characterized by certain tax advantages , and some provide for

2555-474: The United States of America and Canada now face chronic pension crises. A defined contribution (DC) plan, is a pension plan where employers set aside a certain proportion (i.e. contributions) of a worker's earnings (such as 5%) in an investment account, and the worker receives this savings and any accumulated investment earnings upon retirement. These contributions are paid into an individual account for each member. The contributions are invested, for example in

2628-566: The acquisition, Concord merged Imagem with The Bicycle Music Company to form Concord Music Publishing. Highlights from Imagem's pop catalogue included Nik Kershaw , Phil Collins , Genesis , The Temper Trap , M.I.A. , Pink Floyd , Vampire Weekend , Dire Straits and Daft Punk ; as well as some European rights to Linkin Park and Justin Timberlake . Imagem had offices in the Netherlands, London, New York, Los Angeles and Berlin. Boosey & Hawkes

2701-559: The assets are truly secured for their benefit. Second, contributions to the vehicle should be tax-deductible to the employer (or at least, a tax deduction should be secured already). And third, to the extent that it has funded the pension liability, the employer should be able to reduce the liability shown on its balance sheet. In the absence of appropriate statute, attempts have been made to invent suitable vehicles with varying degrees of success. The most notable has been in Germany where, until

2774-503: The attainment of normal retirement age (usually age 65). Companies would rather hire younger employees at lower wages. Some of those provisions come in the form of additional temporary or supplemental benefits , which are payable to a certain age, usually before attaining normal retirement age. Due to changes in pensions over the years, many pension systems, including those in Alabama , California , Indiana , and New York , have shifted to

2847-493: The average retirement age and lifespan of the employees, the returns to be earned by the pension plan's investments and any additional taxes or levies, such as those required by the Pension Benefit Guaranty Corporation in the U.S. So, for this arrangement, the benefit is relatively secure but the contribution is uncertain even when estimated by a professional. This has serious cost considerations and risks for

2920-483: The best interests of the beneficiaries. These jurisdictions account for over 80% of assets held by private pension plans around the world. Of the $ 50.7 trillion of global assets in 2019, $ 32.2T were in U.S. plans, the next largest being the U.K. ($ 3.2T), Canada ($ 2.8T), Australia ($ 1.9T), Singapore ($ 0.3T), Hong Kong and Ireland (each roughly $ 0.2T), New Zealand, India, Kenya, Nigeria, Jamaica, etc. Civil-law jurisdictions with statutory trust vehicles for pensions include

2993-441: The degree of financial security provided to the retiree. With defined benefit plans, retirees receive a guaranteed payout at retirement, determined by a fixed formula based on factors such as salary and years of service. The risk and responsibility of ensuring sufficient funding through retirement is borne by the employer or plan managers. This type of plan provides a level of financial security for retirees, ensuring they will receive

Imagem - Misplaced Pages Continue

3066-665: The effects of inflation. For 2015, the limits were raised to $ 53,000 and $ 18,000, respectively. Examples of defined contribution pension schemes in other countries are, the UK's personal pensions and proposed National Employment Savings Trust (NEST), Germany's Riester plans, Australia's Superannuation system and New Zealand's KiwiSaver scheme. Individual pension savings plans also exist in Austria, Czech Republic, Denmark, Greece, Finland, Ireland, Netherlands, Slovenia and Spain Many developed economies are moving beyond DB & DC Plans and are adopting

3139-507: The employee's plan. This money can be tax-deferred or not, depending on the exact nature of the plan. Some countries also grant pensions to military veterans. Military pensions are overseen by the government; an example of a standing agency is the United States Department of Veterans Affairs . Ad hoc committees may also be formed to investigate specific tasks, such as the U.S. Commission on Veterans' Pensions (commonly known as

3212-440: The employer and employee to contribute money to a fund during their employment in order to receive defined benefits upon retirement. It is a tax deferred savings vehicle that allows for the tax-free accumulation of a fund for later use as retirement income. Funding can be provided in other ways, such as from labor unions, government agencies, or self-funded schemes. Pension plans are therefore a form of "deferred compensation". A SSAS

3285-494: The employer is the reason given by many employers for switching from defined benefit to defined contribution plans over recent years. The risks to the employer can sometimes be mitigated by discretionary elements in the benefit structure, for instance in the rate of increase granted on accrued pensions, both before and after retirement. The age bias, reduced portability and open ended risk make defined benefit plans better suited to large employers with less mobile workforces, such as

3358-559: The employer offering a pension plan. One of the growing concerns with defined benefit plans is that the level of future obligations will outpace the value of assets held by the plan ( Unfunded mandate ). This "underfunding" dilemma can be faced by any type of defined benefit plan, private or public, but it is most acute in governmental and other public plans where political pressures and less rigorous accounting standards can result in excessive commitments to employees and retirees, but inadequate contributions. Many states and municipalities across

3431-404: The employer tends to pay higher contributions than under defined contribution plans), so such criticism is rarely harsh. The "cost" of a defined benefit plan is not easily calculated, and requires an actuary or actuarial software. However, even with the best of tools, the cost of a defined benefit plan will always be an estimate based on economic and financial assumptions. These assumptions include

3504-438: The end of the 20th century, most occupational pensions were unfunded ("book-reserved") promises by employers. Changes started in 1983. Most national pension systems are based on multi-pillar schemes to ensure greater flexibility and financial security to the old in contrast to reliance on one single system. In general, there are three main functions of pension systems: saving, redistribution and insurance functions. According to

3577-455: The entire spectrum of private equity: buyout , venture capital , growth capital , mezzanine and distressed . AlpInvest also invests across the range of private equity investment channels: In June 2018, ABP was criticized by environmental organizations for its investments in tar sands oil companies and pipelines. ABP reacted by stating that active engagement with the companies delivers more result than divestment from these companies. ABP

3650-446: The estates of Richard Rodgers and Oscar Hammerstein II sold the rights to songs and musicals, including South Pacific , The Sound of Music and Oklahoma! , to Imagem Music Group. The sale transferred power over one of America's most famous song catalogs and the licensing rights for future productions of the musicals, which had been controlled by the Rodgers & Hammerstein Organization,

3723-643: The form of a guaranteed life annuity , thus insuring against the risk of longevity . A pension created by an employer for the benefit of an employee is commonly referred to as an occupational or employer pension. Labor unions , the government, or other organizations may also fund pensions. Occupational pensions are a form of deferred compensation , usually advantageous to employee and employer for tax reasons. Many pensions also contain an additional insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries. Other vehicles (certain lottery payouts, for example, or an annuity ) may provide

SECTION 50

#1732873320961

3796-560: The individual; the terminology varies between countries. Retirement plans may be set up by employers, insurance companies, the government, or other institutions such as employer associations or trade unions. Called retirement plans in the United States , they are commonly known as pension schemes in the United Kingdom and Ireland and superannuation plans (or super ) in Australia and New Zealand . Retirement pensions are typically in

3869-400: The investment portfolio to his or her individual needs and financial situation, including the choice of how much to contribute, if anything at all. However, others state that these apparent advantages could also hinder some workers who might not possess the financial savvy to choose the correct investment vehicles or have the discipline to voluntarily contribute money to retirement accounts. In

3942-450: The member's salary at retirement, multiplied by a factor known as the accrual rate . The final accrued amount is available as a monthly pension or a lump sum, but usually monthly. In the US, 26 U.S.C.   § 414(j) specifies a defined benefit plan to be any pension plan that is not a defined contribution plan (see below) where a defined contribution plan is any plan with individual accounts. A traditional pension plan that defines

4015-641: The occupied Palestinian territories. In the United States, as in Europe, ABP is a major investor in financial markets including public equity , fixed income , real estate , commodities , hedge funds and private equity . According to information published by ABP, its largest US investments include ExxonMobil , JPMorgan Chase , General Electric , Goldman Sachs , Morgan Stanley , Citigroup , Boston Properties , Public Storage , Microsoft and Cisco Systems . Based in New York City, New Holland Capital (NHC)

4088-431: The pension for older employees than for younger ones (an "age bias"). Defined benefit pensions tend to be less portable than defined contribution plans, even if the plan allows a lump sum cash benefit at termination. Most plans, however, pay their benefits as an annuity, so retirees do not bear the risk of low investment returns on contributions or of outliving their retirement income. The open-ended nature of these risks to

4161-567: The pension fund was a government controlled entity that fell under the authority of the minister of home affairs in The Hague . In January 1996, ABP was privatized although its primary function remains unchanged. Since 1 March 2008, ABP's subsidiary APG administers the ABP pension scheme. ABP is headquartered in Heerlen, Netherlands . On 1 January 2015, Corien Wortmann-Kool took the chair as Chairman of

4234-530: The pension plan allows for early retirement, payments are often reduced to recognize that the retirees will receive the payouts for longer periods of time. In the United States, under the Employee Retirement Income Security Act of 1974 , any reduction factor less than or equal to the actuarial early retirement reduction factor is acceptable. Many DB plans include early retirement provisions to encourage employees to retire early, before

4307-408: The person's retirement from work. A pension may be: Pensions should not be confused with severance pay ; the former is usually paid in regular amounts for life after retirement, while the latter is typically paid as a fixed amount after involuntary termination of employment before retirement. The terms " retirement plan " and " superannuation " tend to refer to a pension granted upon retirement of

4380-410: The plan. Traditional defined benefit plan designs (because of their typically flat accrual rate and the decreasing time for interest discounting as people get closer to retirement age) tend to exhibit a J-shaped accrual pattern of benefits, where the present value of benefits grows quite slowly early in an employee's career and accelerates significantly in mid-career: in other words it costs more to fund

4453-445: The private sector in many countries. For example, the number of defined benefit plans in the U.S. has been steadily declining, as more and more employers see pension contributions as a large expense avoidable by disbanding the defined benefit plan and instead offering a defined contribution plan. Money contributed can either be from employee salary deferral or from employer contributions. The portability of defined contribution pensions

SECTION 60

#1732873320961

4526-585: The provisions of the Tier I scheme, whereas Veronica, hired in August 1995, would be permitted to retire at age 60 with full benefits and Jessica, hired in December 2014, would not be able to retire with full benefits until she became 65. In an unfunded defined benefit pension, no assets are set aside and the benefits are paid for by the employer or other pension sponsor as and when they are paid. Pension arrangements provided by

4599-569: The public sector (which has open-ended support from taxpayers). This coupled with a lack of foresight on the employers part means a large proportion of the workforce are kept in the dark over future investment schemes. Defined benefit plans are sometimes criticized as being paternalistic as they enable employers or plan trustees to make decisions about the type of benefits and family structures and lifestyles of their employees. However they are typically more valuable than defined contribution plans in most circumstances and for most employees (mainly because

4672-399: The purchasing power of the pension; the higher the inflation rate, the lower the purchasing power of a fixed annual pension. This effect can be mitigated by providing annual increases to the pension at the rate of inflation (usually capped, for instance at 5% in any given year). This method is advantageous for the employee since it stabilizes the purchasing power of pensions to some extent. If

4745-404: The risk of market fluctuations that could reduce their retirement savings. However, defined contribution plans provide more flexibility for employees, who can choose how much to contribute and how to invest their funds. Hybrid plans, such as cash balance and pension equity plans, combine features of both defined benefit and defined contribution plans. These plans have become increasingly popular in

4818-498: The salary minus a threshold (2008: €10,100 per year). The reason for the threshold is the fact that the pension is a supplement to the AOW, etc. ABP manages the bulk of its investments in-house through its captive investment unit APG , a privately owned investment manager. APG operates as a subsidiary of Stichting Pensioenfonds ABP and was formerly known as ABP Investments. In 2006, ABP and PGGM , another large Dutch pension fund, considered

4891-439: The selection of investment options and administrative providers. In the United States, the legal definition of a defined contribution plan is a plan providing for an individual account for each participant, and for benefits based solely on the amount contributed to the account, plus or minus income, gains, expenses and losses allocated to the account (see 26 U.S.C.   § 414(i) ). Examples of defined contribution plans in

4964-466: The sponsor/employer, and these risks may be substantial. In addition, participants do not necessarily purchase annuities with their savings upon retirement, and bear the risk of outliving their assets. (In the United Kingdom, for instance, it is a legal requirement to use the bulk of the fund to purchase an annuity.) The "cost" of a defined contribution plan is readily calculated, but the benefit from

5037-443: The state in most countries in the world are unfunded, with benefits paid directly from current workers' contributions and taxes. This method of financing is known as pay-as-you-go , or PAYGO . The social security systems of many European countries are unfunded, having benefits paid directly out of current taxes and social security contributions, although several countries have hybrid systems which are partially funded. Spain set up

5110-402: The state which may rank no higher than the state's promise to pay future pensions. Occupational pensions are typically provided through employment agreements between workers and employers, and their financing structure must meet legislative requirements. In common-law jurisdictions, the law requires that pensions be pre-funded in trusts, with a range of requirements to ensure the trustees act in

5183-415: The stock market, and the returns on the investment (which may be positive or negative) are credited to the individual's account. On retirement, the member's account is used to provide retirement benefits, sometimes through the purchase of an annuity which then provides a regular income. Defined contribution plans have become widespread all over the world in recent years, and are now the dominant form of plan in

5256-558: The total distribution of occupational pensions around the world. It will be noted that four of the largest economies (Germany, France, Italy and Spain) have very little in the way of pension assets. Nevertheless, in terms of typical net income replacement in retirement, these countries rank well relative to those with pension assets. These and other countries represent a fundamentally different approach to pension provision, often referred to as "intergenerational solidarity". Intergenerational solidarity operates to an extent in any country with

5329-480: Was sold to Imagem in April 2008 for £126m by its private equity owner, HgCapital . The sale was one of the world's largest of classical music. Hg Capital took Boosey & Hawkes off the stock exchange in 2003 for £75m. Under its ownership, the group made six acquisitions in new areas like jazz and tango. Revenues from supplying music for advertising and film were increased, and printing and distribution outsourced. In 2009,

#960039