What Is a Pension Risk Transfer? A pension risk transfer occurs when a defined benefit pension provider offloads some or all of the plan’s risk (e.g., retirement income liabilities to former employee beneficiaries). The plan sponsor can do this by offering vested plan participants a lump-sum payment to voluntarily leave the plan early (buying out employees’ pensions) or
What Is a Pension Shortfall? A pension shortfall is a situation where a company offering employees a defined benefit (DB) plan does not have enough money to meet the obligations of the pension fund. A pension shortfall typically occurs because the investments selected by the pension manager did not live up to expectations. A pension
What Is Pent-Up Demand? Pent-up demand refers to a situation where demand for a service or product is unusually strong. Economists generally use the term to describe the general public’s return to consumerism following a period of decreased spending. The idea is that consumers tend to hold off making purchases during a recession, building up a backlog
What Is the People’s Bank of China? The People’s Bank of China (PBoC) is the central bank of the People’s Republic of China and is located in Beijing. The PBoC has many functions in China’s monetary system, including: Creating and enforcing laws, rules, and regulationsCreating and implementing monetary policyManaging the State treasuryRegulating the country’s financial
What Is Per Diem Interest? The term per diem interest refers to the interest charged on a loan on a daily basis—most often on mortgages. Part of the administrative process, this kind of interest is calculated between the closing date of the loan and the time at which the mortgage loan actually begins. Per diem
What Is Per Capita? Per capita is a Latin term that translates to “by head.” Per capita means the average per person and is often used in place of “per person” in statistical observances. The phrase can be used for almost any kind of population description but is common when discussing economic data. This could
What Is GDP Per Capita? Gross domestic product (GDP) per capita is a financial metric that breaks down a country’s economic output per person and is calculated by dividing the GDP of a nation by its population. Key Takeaways Gross domestic product per capita measures a country’s economic output per person and is calculated by
What Is Perceived Value? In marketing terminology, perceived value is the customers’ evaluation of the merits of a product or service, and its ability to meet their needs and expectations, especially in comparison with its peers. Marketing professionals try to influence consumers’ perceived value of a product by describing the attributes that make it superior
What Is Percentage Change? Percentage change is used for many purposes in finance, often to represent the price change of a stock over time, expressed as a percentage. The formula used to calculate this change as a percentage is a simple mathematical concept that varies slightly depending on whether the change is an increase or
What Is Percentage Depletion? Percentage depletion is a tax deduction for depreciation allowable for businesses involved in extracting fossil fuels, minerals, and other nonrenewable resources from the earth. Key Takeaways The depletion allowance has made oil and gas at the wellhead one of the most tax-advantaged investments available. The deduction is intended to incentivize domestic
