Banque de France
NBER Working Papers and Publications
|March 2014||Adding Actuarial Estimates of Defined-Benefit Pension Plans to National Accounts|
with David Lenze, Marshall B. Reinsdorf
in Measuring Wealth and Financial Intermediation and Their Links to the Real Economy, Charles R. Hulten and Marshall B. Reinsdorf, editors
Cash accounting has traditionally been used in national accounts to measure defined benefit (DB) pension plans, but actuarial measures would provide a full picture of household saving and wealth from participation in these plans and of employers' pension expense. In addition, to make meaningful international comparisons of households' retirement wealth, actuarial measures of social security are needed. In some countries employer-sponsored DB pension plans are very important, while in other countries retirement income comes almost entirely from social security and similar government-sponsored pension plans. Recent changes to international guidelines for national accounts call for these sorts of actuarial measures.
This chapter develops methods for incorporating actuarial measures of DB p...