Why junks and gics are a deadly mix for pension plans
Article Abstract:
It is recommended that junk bonds or non-investment grade bonds and the high-interest guaranteed investment contract (GIC) should not mingle with pension plans. Several pensioners encounter problems when an insurance firm purchases a single junk bond offering and that insurance firm formulated a high-interest GIC based on the junk bond's high return. The problem starts when the junk bond issuer fails to make payments on its bond and the insurance firm fails to fulfill its obligations to its GIC holders that results in the pension fund not being able to pay its participants.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1993
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A votre sante
Article Abstract:
Efforts to reform the health care system continue despite the failure of the Clinton Administration's health reform proposal in 1994. Among the proposed strategies are to improve previous single-payer schemes and to use methods employed in the ERISA reform of pension plans. Sen. Arlen Spector's proposed Health Care Assurance Act and Sen. Nancy Kassebaum's proposed S. 1028 health insurance in particular offer significant potential.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1996
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New and improved GIcs keep insurers competitive
Article Abstract:
Changes in the guaranteed investment contracts (GIC) market have taken place during the 1990s. Synthetic GICs split the insurance and investment products of the product and are marketed by non-insurance companies. These companies include investment managers and banks which have different regulations, management techniques and cost operations than insurance companies.
Publication Name: Best's Review Life-Health Insurance Edition
Subject: Insurance
ISSN: 0275-0988
Year: 1996
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