Tim V. Eaton

Funding Levels and Gender in Public Pension Plans

Using a comprehensive sample of 2002 and 2005 U.S. public retirement systems, we found that public pension plan underfunding grew dramatically in these years despite a good economy, increasing state tax revenues, and strong stock market returns on average, plans were only 83% funded. Teacher plans and plans with the most retirees were more underfunded. We found no significant differences related to asset allocations or actuarial assumptions about inflation and rate of return. A primary factor associated with significantly lower underfunding was more female active participants in the plan, suggesting another risk to womens retirement income.

Job search and selection by academic accountants: new and relocating faculty

Abstract This study examines the factors accounting faculty consider most important in accepting a certain academic position and their level of satisfaction that they selected the correct school. Also, information is obtained on how interviews with universities were obtained and conducted. A questionnaire was sent to two groups of faculty: new PhDs accepting their first academic employment and also faculty moving to a new school. Differences were found in importance of factors in job selection between new and relocating faculty, those accepting positions at doctoral vs. non-doctoral granting schools, and males and females. The extent of job search and methods of obtaining interviews differed between those relocating voluntarily and those leaving involuntarily. This research has implications both for new and mobile faculty and institutions interested in attracting the best faculty.

An Examination of ERR and Asset Allocation in Public Pension Plans

In this paper, we examine the usefulness of expected rates of return (ERR) for public pension plans. Specifically, we test the correlation between the expected rate of return on plan assets and asset allocation. We also examine the predictive power of ERR on the actual returns of the pension assets. We find that the correlation between expected return and the percentage of assets that are equity securities is relatively weak. Further, we find that the percentage of assets that are equity securities is a much better predictor of actual returns than the disclosed expected return in public pension plans. These results provide evidence to support SFAS No. 87, which requires the disclosure of plan assets and against recently promulgated SFAS No. 132, which eliminates this disclosure requirement. The evidence also supports GASB 25sStatement of Net Plan Assets.

Where to Retire? The Tax Implications of Geography in Retirement

Retirement planning is an issue of growing concern to the nation’s aging population and state governments as the number of retirees continues to increase each year. Retired individuals and individuals planning for retirement should consider state tax policies, as they vary from state to state, when selecting a retirement location. State governments should also consider making tax policy changes in order to attract the older population. State tax policies could impact a retiree’s financial stability during retirement. This paper examines the tax implications of geography in retirement and how relocation has the potential to significantly decrease an individual’s pension income tax liability.

SEC application of APB 29: Form over substance?

The authors contend that the SEC staff is misapplying APB 29, which covers spin-off sales of a subsidiary from one company to another. ©1999 John Wiley & Sons, Inc.