401(k) plan asset allocation, account balances, and loan activity in 2010

THE BULK OF 401(K) ASSETS CONTINUED TO BE INVESTED IN STOCKS: On average, at year-end 2010, 62 percent of 401(k) participants' assets were invested in equity securities through equity funds, the equity portion of balanced funds, and company stock. Thirty-three percent were in fixed-income securities such as stable value investments and bond and money funds. SEVENTY PERCENT OF 401(K) PLANS INCLUDED TARGET-DATE FUNDS IN THEIR INVESTMENT LINEUP AT YEAR-END 2010: At year-end 2010, 11 percent of the assets in the EBRI/ICI 401(k) database were invested in target-date funds and 36 percent of 401(k) participants held target-date funds. Also known as lifecycle funds, they are designed to offer a diversified portfolio that automatically rebalances to be more focused on income over time. MORE NEW OR RECENT HIRES INVESTED THEIR 401(K) ASSETS IN BALANCED FUNDS, INCLUDING TARGET-DATE FUNDS: For example, at year-end 2010, 44 percent of the account balances of recently hired participants in their 20s were invested in balanced funds, compared with 42 percent in 2009, and about 7 percent in 1998. A significant subset of that balanced fund category is target-date funds. At year-end 2010, 35 percent of the account balances of recently hired participants in their 20s were invested in target-date funds, compared with 31 percent at year-end 2009. 401(K) PARTICIPANTS CONTINUED TO SEEK DIVERSIFICATION OF THEIR INVESTMENTS: The share of 401(k) accounts invested in company stock continued to shrink, falling by more than a percentage point (to 8 percent) in 2010, continuing a steady decline that started in 1999. Recently hired 401(k) participants contributed to this trend: They tended to be less likely to hold employer stock. PARTICIPANTS' 401(K) LOAN BALANCES DECLINED SLIGHTLY IN 2010: In 2010, 21 percent of all 401(k) participants who were eligible for loans had loans outstanding against their 401(k) accounts, unchanged from year-end 2009, and up from 18 percent at year-end 2008. Loans outstanding amounted to 14 percent of the remaining account balance, on average, at year-end 2010, compared with 15 percent at year-end 2009. Loan amounts outstanding declined slightly from those in the past few years. THE YEAR-END 2010 AVERAGE ACCOUNT BALANCE IN THE DATABASE WAS 3.4 PERCENT HIGHER THAN THE YEAR BEFORE, BUT MAY NOT ACCURATELY REFLECT THE EXPERIENCE OF TYPICAL 401(K) PARTICIPANTS IN 2010: To understand changes in 401(k) participants' average account balances, it is important to analyze a sample of consistent participants. As with previous EBRI/ICI updates, analysis of a sample of consistent 401(k) participants (those that have been in the same plan since 2003) is expected to be published in 2012.     

Towards an adequate and sustainable replacement rate in defined benefit pension systems: The case of Spain

The main objective of this article is to determine, based on internal data, replacement rates for a defined benefit pension system, with two aims: the adequacy of pensions – measured in terms of the expenditure of retirees – and the sustainability of the system. For this purpose two instruments are used: the internal rate of return, and techniques based on systems of notional accounts. These figures, derived from internal data, will serve, by comparison with the replacement rate of the system, to assess whether the system tends more towards adequacy or sustainability. The system studied is that of Spain.     

Local labour markets delineation: an approach based on evolutionary algorithms and classification methods

In this paper a methodology for the delineation of local labour markets (LLMs) using evolutionary algorithms is proposed. This procedure, based on that in Flórez-Revuelta et al. [13 F. Flórez-Revuelta, J.M. Casado-Díaz, and L. Martínez-Bernabeu, An evolutionary approach to the delineation of functional areas base on travel-to-work flows, Int. J. Autom. Comput. 5(1) (2008), pp. 10–21. doi: 10.1007/s11633-008-0010-6[Crossref] , [Google Scholar],14 F. Flórez-Revuelta, J.M. Casado-Díaz, L. Martínez-Bernabeu, and R. Gómez-Hernández, A memetic algorithm for the delineation of local labour markets, in Parallel Problem Solving from Nature X, Vol. 5199, Lecture Notes in Computer Science, G. Rudolph, T.H. Jansen, S.M. Lucas, C. Poloni, and N. Beume, eds., Springer, Berlin, 2008, pp. 1011–1020. [Google Scholar]], introduces three modifications. First, initial groups of municipalities with a minimum size requirement are built using the travel time between them. Second, a not fully random initiation algorithm is proposed. And third, as a final stage of the procedure, a contiguity step is implemented. These modifications significantly decrease the computational times of the algorithm (up to a 99%) without any deterioration of the quality of the solutions. The optimization algorithm may give a set of potential solutions with very similar values with respect to the objective function what would lead to different partitions, both in terms of number of markets and their composition. In order to capture their common aspects an algorithm based on a cluster partitioning of k-means type is presented. This stage of the procedure also provides a ranking of LLMs foci useful for planners and administrations in decision-making processes on issues related to labour activities. Finally, to evaluate the performance of the algorithm a toy example with artificial data is analysed. The full methodology is illustrated through a real commuting data set of the region of Aragón (Spain).     

The Dangers of Assessing the Financial Vulnerability of Nonprofits Using Traditional Measures

This article analyzes the financial vulnerability of 228 British nongovernmental development organizations (NGDOs) during the period 2008–2012. To do this, we use the Financial Vulnerability Index developed by Trussel et al. (2002). This index is commonly used in the literature on nonprofit organizations. However, we observe a very poor adaptation of the index to the reality of this industry, at least in predictive terms. The article goes deeply into each of the variables that are used to calculate this index, and we offer explanations of their inadequacy to this subsector of nonprofits.     

THE EFFECT OF NONCONTRIBUTORY PENSIONS ON SAVING IN MEXICO

This paper examines the effects of noncontributory pension programs at the federal and state levels on Mexican households' saving patterns using micro data from the Mexican Income and Expenditure Survey. We find that the federal program curtails saving among households whose oldest member is either 18–54 or 65–69 years old, possibly through anticipation effects, a decrease in the longevity risk faced by households, and a redistribution of income between households of different generations. Specifically, these households appear to be reallocating income away from saving into human capital investments, like education and health. Generally, state programs have neither significant effects on household saving, nor does the combination of federal and state programs. Finally, with a few exceptions, noncontributory pensions have no significant impact on the saving of households with members 70 years of age or older—individuals eligible for those pensions, plausibly because of their dissaving stage in the lifecycle. (JEL D14, J26, O12, H55)     

Psychological Abuse in Young Couples: Risk Factors

ABSTRACT

In a study conducted at a major university in Spain, 648 university students between the ages of 17 and 23 years were assessed to identify the manifestations of psychological abuse prior to the consolidation of marital status (e.g., matrimony, start of cohabitation). To evaluate psychological abuse in the students’ intimate relationships, the authors created a Questionnaire on Psychological Abuse. Results show coercive patterns of interaction in the students’ dating relationships. Significant differences were found between men and women, with behavioral factors such as hostility, blaming, and abusive insistence. Future research is suggested that would permit changes in attitude and behavior to be introduced into dating relations.     

Observing Erotic Videos With Heterosexual Content Induces Different Cerebral Responses in Homosexual and Heterosexual Men

ABSTRACT

To determine the cerebral functionality associated with the perception and processing of erotic stimuli in men with different sexual orientation, this work evaluated the electroencephalographic activity (EEG) from several cortical areas, as well as subjective arousal in homosexual and heterosexual men during observation of an erotic film with heterosexual content. The heterosexual men rated the erotic video with higher general and sexual arousal than the homosexual participants. During observation of the neutral and erotic videos, both groups showed a decreased amplitude of the alpha band in prefrontal and parietal cortices, indicating increased attention. When watching the erotic video, the homosexual men showed an increased amplitude of the theta and fast bands only in the prefrontal cortex, which could be related to the cognitive processing of the erotic stimulus. These EEG results should broaden our knowledge of the cortical mechanisms related to the different perception and processing of erotic stimuli in men with different sexual orientations.     

The microfoundations of diaspora politics: unpacking the state and disaggregating the diaspora

ABSTRACT

Recognising the need to unpack ?the ‘state’ and? ?problematise? the term? ‘diaspora’, in this special issue we examine the various actors within (and beyond) the state that participate in the design and implementation of diaspora policies, as well as the mechanisms through which ???diasporas?? are constructed by governments, political parties, diaspora entrepreneurs, or international organisations?. Ex??tant theories are often hard-pressed to capture the empirical variation and often end up identifying ‘exceptions’. We?? theorise these ‘exceptions’ through three interrelated? conceptual moves: First, ??we focus on? ??underst?udie?d? aspects of the relationships between states as well as organised non-state actors and their citizens or co-ethnics? abroad (??or at home – in cases of return migration).? Second, ??we? ??examine dyads of ?origin states and specific diasporic communities differentiated by time of emigration, place of residence, socio-economic status, migratory status, generation, or skills. T?hird??,? ?we ?consider? migration in its multiple spatial and temporal phases (emigration, immigration, transit, return??)? and ?how the???y?? inter?sect to?? constitute diasporic identities?? and policies. ??These? conceptual moves contribute to comparative research in the field and allow us to identify the mechanisms? connect?ing structural variable??s with ? specific policies by states ?(and other actors?) as well as responses? by the relevant ?diasporic ?communi?ties??.