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Financial risks and the Pension Protection Fund : can it survive them?
Author(s)
Date Issued
2006-11
Date Available
2009-06-15T14:07:36Z
Abstract
This paper discusses the financial risks faced by the UK Pension Protection Fund
(PPF) and what, if anything, it can do about them. It draws lessons from the
regulatory regimes under which other financial institutions, such as banks and
insurance companies, operate and asks why pension funds are treated differently. It
also reviews the experience with other government-sponsored insurance schemes,
such as the US Pension Benefit Guaranty Corporation, upon which the PPF is
modelled. We conclude that the PPF will live under the permanent risk of insolvency
as a consequence of the moral hazard, adverse selection, and, especially, systemic
risks that it faces.
Type of Material
Working Paper
Publisher
University College Dublin. School of Business. Centre for Financial Markets
University College Dublin. School of Business
Series
Centre for Financial Markets working paper series
WP-07-03
UCD Business Schools Working Paper Series
WP09/01
Copyright (Published Version)
2006, Centre for Financial Markets
Subject – LCSH
Pensions--Great Britain
Financial risk
Pension trusts--Finance--Law and legislation
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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