MS3234 Pension Planning

Part I 

Course Duration: ONE SEMESTER

Credit Units: 3 

Level: B3

Medium of Instruction: English

Prerequisites: Nil 

Precursors: NIL

Equivalent Courses: NIL 

Exclusive Courses: NIL 

Part II        

Course Aims

The aim of this course is to introduce to students the features of pension planning. 

Course Intended Learning Outcomes (CILOs)
Upon successful completion of this course, students should be able to:  

understand retirement plan features, costs, and regulatory issues

Teaching and learning Activities (TLAs)
(Indicative of likely activities and tasks students will undertake to learn in this course.  Final details will be provided to students in their first week of attendance in this course.) 

TLA1: Lecture 
·          Concepts and general knowledge of Pension Planning are explained.        

TLA2: Tutorial 
Students are required to team up with their classmates and participate with the following activities:-
 
 ·         Tutorial exercises and activities:
        Students respond to and participate with the in-class exercises and activities.  They are
        required to apply the real life examples to their learnt subjects.
 ·         Group discussion & case study: 
        Discussion on various aspects of the assigned major issues or questions as well as the
        assigned case studies. 

TLA3: Outside classroom activities 
·          Students are required to carry out some learning-oriented activities outside their classroom 
        such as assigned case studies and projects. 

Constructive Alignment of ILOs and Teaching and Learning Activities  

Assessment Tasks/Activities
(Indicative of likely activities and tasks designed to assess how well the students achieve the CILOs. Final details will be provided to students in their first week of attendance in this course) 

Constructive Alignment of ILOs and Assessment Methods 

Grading of Student Achievement:  

AT1: Tutorial Exercises & Activities 

AT2: Project

AT3: In-class participation  

AT4: Written Examination

Keyword Syllabus

Basic Principle of Social Insurance

1.      How much you needed for retirement?
2.      Aging
3.      Basic Principle and characteristics of Social Insurance
4.     Types of Social Insurance
5.     Economic of Social Insurance Program 

Employee Benefits

1.     Introduction to Employee Benefits
2.     Employee Benefits Planning and Management 

Development of Private Pension Plans 

1.      Growth of private plans. 
2.      Economic problems of old age. 
3.      Reasons for growth of private pensions. 
4.      Rationale of private pensions.
5.      Qualified Plans and Nonqualified Plans
6.      Qualified plan characteristics          

Benefit Plan Objectives 

1.       Environmental considerations.
2.       Employer philosophy and attitudes.
3.       Employer objectives.
4.       Pension Plan Design.
5.       Pension Benefit Formulas
6.       Pension Plan Funding.
7.       Defined benefit  vs. defined contribution plans

Mandatory provident fund

1.       Why MPF?
2.       Key features
3.       Employee Benefits
4.       Employer’s Obligations
5.       Self-employed Persons
6.       Default Contribution
7.       Security Measures
8.       Investment Standards
9.       Occupational Retirement Schemes Ordinance 

Cost and Funding Considerations

1.        Plan Installation and Administration
2.        Estimated cost versus ultimate cost.
3.        Choice of assumptions. Alternative Funding Methods
4.        Cost assumptions
5.        Budgeting pension costs. 
6.        Actuarial cost methods. 
7.        Defined contribution plans. 
8.        Minimum funding standards. 
9.        Deductibility of employer contributions
10.      Recommendation of the most appropriate type of retirement plan
11.      Suitability of an investment portfolio for a qualified plan situation 

Investment Issues for Pension Planning

1.         Class of assets
2.         Characteristics of Pension Investment
3.         Administrative Issues for Defined Contribution Plan
4.         Psychology of Investmen
t5.        Economic Cycles and Investment Timing
6.         Choosing shares for Pension Investment 

Insurance Intermediaries Quality Assurance Scheme

1.          Syllabus for Examination Paper on MPF 

Social Insurance of Other Experiences

1.          Chile
2.           USA
3.           Singapore