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Can professors afford to retire? Evidence from a survey of Canadian university pension plans

Published online by Cambridge University Press:  11 June 2007

ALLEN GOSS
ALLEN GOSS
Affiliation:
York University in Toronto, Canada
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Abstract

I explore the diversity among pension plans offered to faculty at 52 Canadian universities. Far from displaying homogeneity, I find marked differences between the plans, both in their structure (DB, DC, and hybrid) and in the replacement ratios from those plans. Using financial simulations I construct representative pension payoff profiles for each plan and find expected replacement ratios (the annual annuity stream available at retirement expressed as a percentage of final wages) ranging from 54.3% to 88.2% and internal rates of return on contributions varying from 10.39% to 18%.

Type
Research Article
Information
Journal of Pension Economics & Finance , Volume 6 , Issue 2 , July 2007 , pp. 187 - 226
Copyright
© 2007 Cambridge University Press

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Footnotes

I am grateful to Robert Brown, Charles Draimin, Ming Dong, Donna Gray, Paul Huber, Alan MacNaughton, Melville McMillan, Moshe Milevsky, Mark Rosenfeld, Pauline Shum, and seminar participants at the University of Toronto for helpful comments. All errors are my own.