An update on legal aspects of plan communications

Plan communications can be a real challenge for trustees, unions and management, but effective communications are essential because they provide the link between plan sponsors' efforts to provide benefits and the actual receipt of those benefits by participants. Communication-related issues that must be considered by those responsible for keeping plan participants informed include ERISA provisions, the need for accurate information, disclosures concerning possible benefit plan changes, COBRA rights and HIPAA provisions.     

CHANGING PENSION POLICY AND THE AGING OF AMERICA

The recently enacted Tax Reform Act of 1986 contains a number of pension policy provisions including faster vesting for private-sector, single-employer pension plans and imposing tax penalties on preretirement pension plan distributions that are not saved until retirement age. Since pensions are a long-term commitment, the impact of pension policy changes may not be fully realized for a number of years. For that reason, the effects of the Tax Reform Act's pension provisions are investigated using both short-run and long-run simulation models. Faster vesting would immediately entitle an additional 1.9 million pension plan participants to pension benefits at retirement. This increase would not, however, be translated directly into significant gains in pension recipiency for workers currently in their 50s. Nevertheless, by the time the baby boom generation retires, faster vesting and lump-sum penalties could provide more retirees with pensions and increase the standard of living of pension recipients.     

试论保险代位诉讼及其效力体现

保险代位制度作为现代保险法中债的实现方式，为保障被保险人利益创设了新的救济途径。保险代住一般要通过提起代位诉讼的方式实现。保险代住诉讼不同于普通的民事诉讼。法律关系复杂且触及到若干民事诉讼的核心理论问题，如诉权理论、当事人理论等，需从理论上加以廓清。深入探讨保险代位诉讼。对于落实保险代住制度，解决保险实践中的争议，丰富民事诉讼理论均具有重要意义。     

Has this doctor-governor found the key to health reform?. Interview by Berkeley Rice

Under the leadership of internist Howard Dean, the nation's only physician-governor, Vermont is adopting a comprehensive health-care plan that will revolutionize the way the state's doctors practice medicine. As Vermont goes, so may the nation, for Dean is one of the key advisers to the Clinton administration on health-care reform. But if the Vermont plan serves as a model for the rest of the country, many doctors may find it a better pill to swallow. Among other things, it could mean that nearly all the state's physicians will, in effect, participate in a state-run HMO and be subject to global fees and budgets that will also cover hospitals (see opposite page). While the plan's specific provisions are still being debated, Dean's views have spread to other states and to the Clinton administration through his role as co-chairman of the National Governor's Association task force on health care. In a recent interview with Senior Associate Editor Berkeley Rice in the governor's office in Montpelier, Dean discussed Vermont's new health plan, its importance as a model for other states, and his unique perspective as physician-governor.     

AN ANATOMY OF U.S. PERSONAL BANKRUPTCY UNDER CHAPTER 13

We build a structural model that captures salient features of personal bankruptcy under Chapter 13. We estimate our model using a novel data set that we construct from bankruptcies filed in Delaware between 2001 and 2002. Our estimation results highlight the importance of a debtor's choice of repayment plan length on other Chapter 13 outcomes. We use the estimated model to conduct policy experiments to evaluate the impact of more stringent laws that impose restrictions on the length of repayment plans. We find that these provisions would not materially affect creditor recovery rates and would not necessarily make discharge more likely.     

试析我国合同法中的四个条款

我国《合同法》规定了要约的生效时间、要约失效、表见代理、债权人代位权条款。在实际执行中 ,显现这些条款规定过于简略 ,缺乏可操作性。本文分析了要约的生效时间、要约失效、表见代理、债权人代位权条款的不足并提出了修改建议。     

Determinants of the Eurosystem's Central Banks Provisions

Central bank provisions may be used as a measure of the perceived risk of the balance sheet composition by a central bank. We identify three possible sources that may change the size of the provisions. These are: The length of the balance sheet, the central bank revenues, and measures of fiscal stress. Using data of the 11 founding members of the Eurosystem for the years 1999–2015, we are able to test each of the three determinants. We find that provisions are increased with the size of the balance sheet especially in the recent financial crisis. Moreover, provisions are increased at the cost of lower central bank revenues. While this holds for the pre‐crisis period this relationship seems to be less pronounced in the crisis period probably because of the more active collateral policy. Finally, central banks do not tend to lower provisions because of fiscal tensions. This is even more true in the crisis period.     

Optimal Loan Loss Provisions and Welfare

We study the welfare implications of optimal loan loss provisions in a New Keynesian model featuring endogenous default risk and inflationary credit spreads. A unique link between provisions, credit spreads and inflation can be employed to enhance macroeconomic stability. Optimal provisions are most effective when dealing with cost-push financial shocks inherent in volatile spreads and the zero bound problem of monetary policy. Relaxing provisioning requirements following a recessionary financial disturbance consistently achieves the first-best outcome while nullifying the value of monetary policy under commitment. In contrast, deflationary demand shocks warrant an optimal rise in provisions, which inflate prices yet mildly contract output.     

The impact of trade agreements on world export prices

This paper uncovers new stylized facts on the relation between economic integration and world trade prices. Using free on board export price data for the universe of manufacturing products, we show that a country's membership in the WTO (World Trade Organization) or in a PTA (Preferential Trade Agreement) is associated with an increase in export prices of differentiated goods. For the WTO, this effect is captured by the countries that were subject to rigorous WTO accession procedures. We also exploit the importance of the depth of a PTA and of its different provisions. Whereas the effect of the depth per se is not significant, individual provisions evoke distinct effects on prices. In particular, we find that PTAs with provisions on investments are associated with higher export prices. The results are consistent with theoretical models that relate competition to the innovation behavior of firms.     

An examination of financial impacts of SFAS No. 106

Conclusion SFAS No. 106 requires companies to accrue the expected cost of OPEB during the years employees provide services to the company. The Statement is based on the assumption that OPEB are a form of deferred compensation and the resulting obligation should be recognized when services are rendered. This article examined some provisions of the Statement and the possible impact on financial statements of affected companies as well as management efforts to control OPEB costs. The results indicate that adoption of SFAS No. 106 has caused companies to report OPEB transition obligations on their balance sheets and to show higher OPEB annual expenses on their income statements. These perceived negative financial impacts of adopting SFAS No. 106 do not appear to have encouraged management to take immediate actions to curtail the promised OPEB. However, in many cases, management is considering implementing changes in plan design such as increasing or imposing retiree contribution levels or retiree deductibles and higher coinsurance levels, reducing benefits and coverage, and changing coordination of benefits with Medicare in attempt to mitigate the possible negative financial impacts of adopting SFAS No. 106.     

ECONOMIC POLICY UNCERTAINTY EFFECTS ON CREDIT AND STABILITY OF FINANCIAL INSTITUTIONS

We examine policy‐related economic uncertainty effects on the availability of credit, non‐performing loans and loan loss provisions using a panel of 18 countries. We provide significant evidence that uncertainty reduces the availability of credit while leading to increases in banks' non‐performing loans and loan loss provisions, distorting sectoral stability. Our findings are economically meaningful.     

Depreciation Provisions and Investment Incentives under Full Imputation

This paper examines how the Australian full imputation and capital gains tax provisions can combine to influence incentives to invest by affecting the cost of capital. Costs of capital for both unincorporated enterprises and widely held, Australian-owned companies are examined under idealized depreciation provisions. The paper also presents numerical estimates of costs of capital under actual Australian depreciation provisions.     

The impact of earnings management on the performance of ASEAN banks

Southeast Asian financial liberalization policies have enthused both performance evaluation (a pro) and earnings management (a con). Using a sample of ASEAN commercial banks for the period 2007–2014, this study decomposes their banking performance into managerial and profitability efficiencies. An efficiency analysis reveals that Singaporean banks obtained the highest overall and profitability efficiencies, while Bruneian banks had the lowest rates of banking performance. In the stage of managerial efficiency, the most inefficient banks are those of the Philippines, whereas the greatest level is related to Malaysian banks. A frontier projection analysis suggests that Singaporean banks and Malaysian banks are generally more efficient in managing their expenditures and long-term assets in generating income in the long run. With respect to the con, a regression analysis indicates that loan loss provisions are negatively related to banking performance. Overall, it is advisable that policy makers with oversight function should promote performance evaluation from a multidimensional perspective, and keep an eye on estimates of loan loss provisions at banks over years because increases/decreases in loan loss provisions mean decreases/increases in net income or return on assets.     

体育中心建设项目可行性研究探讨——以武汉光谷体育中心为例

结合武汉光谷的规划发展方向、地域特色,切实地从法规条文、基地环境位置、多功能的使用要求、管理与经营、分期规划设计与投资等方面分析阐述建造体育中心的可行性。武汉光谷体育中心的概念性设计构想中,融入城市设计的理念,提出要建造生态的,总体布局、交通组织、形象塑造等方面和环境相和谐又具有标志性的体育建筑群体,以求达到建筑与城市相互促进的效果。     

Recent COBRA developments in the courts

The health care continuation provisions of COBRA have been a concern for employers since the law was enacted. These authors advise that, for guidance in complying with those provisions, it is important to look to court cases.     

Can labor provisions in trade agreements promote gender equality? Empirical evidence from Cambodia

In recent years, an increasing number of regional and bilateral trade agreements have emerged that include provisions on labor standards. The claimed purpose of these labor provisions is to improve working conditions in developing and emerging economies. However, little is known about whether such provisions actually do impact working conditions. This paper conducts an econometric study on the effectiveness of labor provisions in trade agreements. In particular, we evaluate the impact of the 1999 Bilateral Textile Agreement between Cambodia and the United States (CUSBTA) on both the gender wage gap and discrimination. The agreement combined the incentive of higher exports with the obligation of textile manufacturers to comply with international core labor standards, which include the elimination of discrimination in respect of employment and occupation. Using data from the Cambodia Socioeconomic Survey and applying a difference‐in‐difference estimation, we find a statistically significant reduction of the gender wage gap in the textile sector that can be attributed to the CUSBTA.     

辽宁省企业“走出去”的地方法规完善

"走出去"战略是辽宁省完成"振兴东北老工业基地"计划的必然选择,是辽宁省企业提高国际竞争力,走向国际的必由之路。"走出去"战略的良好实施必须有法制法规的保障。在目前我国关于"走出去"法律不完善的背景下,各地方结合本地实际所制定的地方性法规对推动企业"走出去"就尤为重要。在分析辽宁省"走出去"地方性法规现状的基础上,指出其缺乏系统性管理规定等不足,并从完善支持体系和服务体系两方面提出完善建议。     

The Economics of Trade Disputes, the GATT's Article XXIII, and the WTO's Dispute Settlement Understanding

Economic theory has yet to provide a convincing argument that can explain why the threat of retaliation under the GATT/WTO dispute settlement procedures is not sufficient to prevent countries from violating the agreement. We consider the question of why countries violate the agreed–upon rules in the face of explicit provisions which allow them to legally adjust their trade policy. Using the GATT/WTO institutional structure and the guiding principle of reciprocity, we provide a theory suggesting when countries will choose to implement protection in violation of GATT/WTO rules, as opposed to under the relevant safeguards provisions, when trade policy adjustments are necessary between "negotiating rounds."     

A Pure Theory of Job Security and Labour Income Risk

Models of labour market equilibrium where forward-looking decisions maximize both profits and labour income on a risk-neutral basis offer valuable insights into the effects of employment protection legislation. Since risk-neutral behaviour in the labour market presumes perfect insurance, however, job security provisions plays no useful role in such models. This paper studies a stylized model of dynamic labour market interactions where labour reallocation costs are partly financed by uninsured workers' consumption flows. In the resulting second-best equilibrium, provisions that shift labour reallocation costs to risk-neutral employers can increase productive efficiency if their administrative dead-weight costs are not too large, and increase workers' welfare as long as employers' firing costs at least partly finance workers' mobility.     

Deep trade agreements and vertical FDI: The devil is in the details

Although pre‐1990s preferential trade agreements focused mostly on tariff liberalization, recent agreements increasingly contain deep provisions in diverse areas, such as intellectual property rights, investment and standards. At the same time, there has been a remarkable increase in the internationalization of production through foreign direct investment and outsourcing. This paper studies how deep trade agreements affect the international organization of production. Using new measures of the depth and content of preferential trade agreements and of vertical foreign direct investment, the analysis finds evidence that the depth of trade agreements is correlated with vertical foreign direct investment. Furthermore, this relationship is driven by the provisions that improve the contractibility of inputs provided by suppliers, such as standards, while provisions that increase the contractibility of headquarter services, such as intellectual property rights and investment protection, are generally negatively correlated with foreign investment. This finding is consistent with the so‐called “property rights” theory of the multinational firm according to which improving the contractibility of an input reduces the importance of giving incentives through ownership.