The reductions will result from additional taxes to pay for 3.11 disaster recovery and reconstruction, abolition of the child-raising stipends, and increases in the state pension insurance premiums.
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It raises a modest amount by increasing premiums paid to the federal pension-insurance corporation.
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But since these rents are made at the expense of the pension funds and insurance companies on which industry depends for long-term finance, it is not clear that the economy benefits from the process.
As we learned during the subprime mortgage crash, bad loans get sliced and diced, recombined and repackaged, into bonds whose contents are not always understood by the pension funds and insurance companies that buy them.
This strongly encourages the purchase of annuities with pension savings, thereby giving the insurance industry an opportunity to collect a fee as the money is paid out.
If it so chose, the Fed could also expand M3 by buying treasuries from holders outside the banking sector, like insurance companies, pension funds and members of the public.
The fallout from this prediction will include the necessity for pension funds and insurance companies, that have made contractual promises to provide a certain level of return, to tear up these contracts under very stressful conditions.
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To make it work, you will need to estimate the value of the pension payments the survivor will forfeit, and buy enough life insurance to replace that.
The government will have to decide if these individuals should receive the full flat-rate pension, if they first qualify for it after April 2017, despite the fact that they will not have not been making full national insurance contributions for the state second pension in the preceding years.
Meanwhile, the insurance industry and the pension funds should be subject to more systematic regulation.
Furthermore, companies are also facing another financial strain, the payments they must make for pension insurance.
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The development of new financial instruments, such as credit derivatives, has also helped to shift risk from the banks to insurance companies, pension funds and others.
Besides altering the balance between supply and demand, the influx of insurance company and pension fund money should create more price stability for emerging market bonds.
For institututional investors, longevity risk is typically defined as the risk that pension funds and life insurance companies may have to pay out more to beneficiaries than previously calculated due to rising life expectancies .
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The Liberal Democratic Party (LDP) and the newly installed Minister of Finance and Economy, Mr. Yosano, has been fairly consistent in wanting to retain the insurance structure of the pension scheme, but has been willing to tap consumption tax revenues to fill part of the funding gap.
If the defined benefit pensions that remain in the private sector are to pay out their obligations without taxpayers getting soaked, pension insurance premiums need to be liberalized to reflect the real risks they face, as signaled by real prices communicated through a free market.
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It was not the result of investors, including institutional investors like pension plans and insurance companies, or even hedge funds, pouring money into the market.
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Had it gone bankrupt, then the pension scheme might have fallen into the hands of the Pension Protection Fund (PPF), a collective-insurance plan.
"The PBGC and its plan termination insurance are increasingly called upon to protect and pay the pension obligations promised by large, troubled corporations, " O.
Similar to U.S. Social Security, the national pension scheme has essentially been an insurance program.
Other key bills to be presented in the session include reforms in insurance, pension and banking sectors.
Unlocking the funding potential of British pension schemes and insurance companies may well be a good thing.
Mr Jen argues, however, that the biggest dollar diversifiers have been pension, insurance and mutual funds in America.
About 9, 000 more pensioners are to be compensated for losing money on their pension investments with the collapsed Equitable Life insurance company.
It is pursuing legislation to open up the pension sector and increase foreign investment in insurance companies to boost an economy that is expanding at its weakest pace in a decade.
He really laid out the problem quite well, at least, the problem of the last two or three years, that there was a speculative bubble in the price of housing, that the financial institutions, the banks and investment banks and all these insurance companies and pension funds and everyone else exacerbated that problem by spreading that risk all throughout the economy.
Supposedly, the additional pension a person receives each month can be used to buy life insurance to protect the surviving spouse.
This means that the private investors, which the US hopes will include private equity, individual investors, pension plans and insurance companies, will shoulder relatively little risk, with 93% borne by the government.
Departures-such as the recent retirement of the commission's premier specialist in pension and insurance issues-can leave it devoid of expertise and there is often little succession planning.
The complaint describes Alexander as a Nebraska native and University of Nebraska graduate who migrated to California and sold annuities and other insurance products before moving into the pension field.
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