Replacement of defined benefit ("DB") pension plans with defined contribution ("DC") pension plans has been a persistent theme since the early 1990's. In many cases, changes were made to reduce company pension costs, which had the effect of reducing retirement benefits provided by company sponsored pension plans. Reductions in company sponsored pension plan benefits have meant an increased employee reliance on personal retirement savings and government programs to provide adequate retirement income. One consequence of these circumstances is that employees may remain in the workforce longer than in the past. What implications and potential costs do companies face because of these changes?

The Society of Actuaries ("SOA") Pension Section Research Committee would like to hire a researcher to evaluate these issues. The desired outcome of this research is a report that may be used by practitioners as they work with individual companies to demonstrate reductions in pension benefits and provide research regarding the implications of insufficient retirement savings on workforce management.

The SOA Pension Section Research Committee would like the research and structure of the ultimate report to be presented in two parts:

Part A–Summary, consolidation and commentary referencing existing work regarding the following questions and issues:

• Have there been reductions in benefits provided by company sponsored pension plans over the past 20 years? Have these been significant? Can these be measured?
• Have employee retirement savings increased over the past 20 years? Is the combination of benefits from company sponsored pension plans and employee personal retirement savings sufficient to provide retirement income at normal retirement age? At early retirement ages?
• How does the level of retirement savings (personal and from company sponsored plans) affect an employee's decision to retire or continue working? How influential is this factor compared to other considerations such as ability to learn new technology, or employee health?

Part B–Prepare an original research paper that addresses the following:

• Assuming insufficient retirement savings is an influential factor in employee decisions to remain in the workforce, what is the economic cost to companies? Can this be quantified for a single company? What other factors and economic implications are associated with delayed retirement? Can these be quantified? Will an investment by a company to provide more generous retirement benefits reduce future company costs?

The SOA Pension Section Research Committee wishes the researcher to gather and evaluate data to determine whether and to what extent reductions in company sponsored pension benefits and insufficient retirement savings influence employee decisions to remain in the workforce longer than expected and at what economic cost or benefit to companies.

Ideally the research should cover the United States and Canada, but responses that are specific to either country will be considered.

To facilitate the evaluation of proposals, the following information should be submitted:

• Resumes of the authors, including any graduate student(s) expected to participate, indicating how their background, education, and experience bear on their qualifications to undertake the research. If more than one author is involved for each report, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the authors as well as for the firm or institution on whose behalf the proposal is submitted.
• An outline of the approach to be used. Details should be given regarding the manner in which appropriate published material will be identified and evaluated, search techniques to be used, collateral material to be consulted, and possible limitations of the review and analysis. Suggestions for survey revisions or expansions should be included.
• Cost estimates for the research, including computer time, salaries, report preparation, research costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
• A schedule for completion of the research, identifying key dates or time frames for research completion and report submission.
• Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.

The Pension Section Research Committee is responsible for the selection of the proposal to be funded. Input from other knowledgeable individuals may also be sought, but the Research Committee will make the final decision. The SOA's Research Actuary will provide staff actuarial support. A Project Oversight Group (POG) will be appointed to oversee the project upon selection of the proposal.

Any questions regarding this RFP should be directed by fax or e-mail to:

Steven Siegel
SOA Research Actuary
e-mail: ssiegel@soa.org
f: 847.706.3578

If you intend to submit a proposal, please send written notification by May 30th, 2011 to:

Barbara Scott
e-mail: bscott@soa.org

Please e-mail a copy of the proposal to:

Barbara Scott at bscott@soa.org

Proposals must be received no later than June 15th, 2011. It is anticipated that all proposers will be informed of the status of their proposal by July 15th, 2011.

Note: Proposals are considered confidential and proprietary.

The Pension Section Research Committee reserves the right to not award a contract for this research. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available. The Pension Section Research Committee also reserves the right to redirect the project as is deemed advisable.

The SOA intends to copyright and publish the results of this research. The research will be considered work–for–hire and all rights thereto belong to the SOA. However, appropriate credit will be given to the researcher(s).