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108-581: CSRS is a defined-benefit plan, akin to a pension . Notably, though, CSRS employees do not participate in Social Security (unless having worked in the private sector beforehand, and then subject to penalties). Employees hired after 1983 are required to be covered by the Federal Employees Retirement System (FERS), which is a three tiered retirement system with a smaller defined benefit (pension), Social Security, and

216-887: A 401(k) -style system called the Thrift Savings Plan (TSP). The defined benefits of both the CSRS and the FERS systems are paid out of the Civil Service Retirement and Disability Fund, which had a projected balance of $ 898 billion as of September 30, 2017. With changes in the determining retirement coverage of federal employees under FERS or CSRS, those employees who are later rehired that were previously covered under CSRS will retain their CSRS coverage if they meet certain service rules. In general, if rehired employees have 5 years of civilian service as of December 31, 1986, they will retain CSRS coverage. However, if

324-635: A benefit for an employee upon that employee's retirement is a defined benefit plan. In the U.S., corporate defined benefit plans, along with many other types of defined benefit plans, are governed by the Employee Retirement Income Security Act of 1974 (ERISA). In the United Kingdom , benefits are typically indexed for inflation (known as Retail Prices Index (RPI)) as required by law for registered pension plans. Inflation during an employee's retirement affects

432-453: A defined contribution plan depends upon the account balance at the time an employee is looking to use the assets. So, for this arrangement, the contribution is known but the benefit is unknown (until calculated). Despite the fact that the participant in a defined contribution plan typically has control over investment decisions, the plan sponsor retains a significant degree of fiduciary responsibility over investment of plan assets, including

540-496: A defined-benefit social security system, but is more controversial when applied to high levels of professional income. Why should younger generations pay for executive pensions which they themselves are unsure of collecting?  Employers have sought ways of getting round this problem through pre-funding, but in civil-law countries have often been limited by the legal vehicles available. A suitable legal vehicle should ideally have three qualities. First, it should convince employees that

648-452: A fund towards meeting the benefits. All plans must be funded in some way, even if they are pay-as-you-go, so this type of plan is more accurately known as pre-funded or fully-funded . The future returns on the investments, and the future benefits to be paid, are not known in advance, so there is no guarantee that a given level of contributions will be enough to meet the benefits. Typically, the contributions to be paid are regularly reviewed in

756-534: A group of 51 society lotteries across the United Kingdom with a common drawing and prize pool. Each drawing is held on behalf of one or more of the society lotteries, whose revenues go to support health-related causes in their respective area. The Health Lottery received criticism on launch for only pledging to donate 20.3% of ticket costs to charity, compared to the National Lottery's 28%, and that

864-558: A lottery offering tickets for sale is the lottery organized by Roman Emperor Augustus . The funds were for repairs in the City of Rome, and the winners were given prizes in the form of articles of unequal value. The first recorded lotteries to offer tickets for sale with prizes in the form of money were held in the Low Countries in the 15th century. Various towns held public lotteries to raise money for town fortifications, and to help

972-649: A lottery to raise money to purchase cannons for the defense of Philadelphia. Several of these lotteries offered prizes in the form of " Pieces of Eight ". George Washington 's Mountain Road Lottery in 1768 was unsuccessful, but these rare lottery tickets bearing Washington's signature became collectors' items; one example sold for about $ 15,000 in 2007. Washington was also a manager for Col. Bernard Moore 's "Slave Lottery" in 1769, which advertised land and slaves as prizes in The Virginia Gazette . At

1080-438: A new breed of collective risk sharing schemes where plan members pool their contributions and to a greater or less extent share the investment and longevity risk . There are multiple naming conventions for these plans reflecting the fact that the future payouts are a target or ambition of the plan sponsor rather than a guarantee, common naming conventions include: Defined contribution pensions, by definition, are funded, as

1188-407: A portion of the employee's contributions to be matched by the employer. In exchange, the funds in such plans may not be withdrawn by the investor prior to reaching a certain age—typically the year the employee reaches 59.5 years old (with a small number of exceptions)—without incurring a substantial penalty. Advocates of defined contribution plans point out that each employee has the ability to tailor

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1296-458: A profit for the state. Although the English probably first experimented with raffles and similar games of chance, the first recorded official lottery was chartered by Queen Elizabeth I , in the year 1566, and was drawn in 1569. The 400,000 tickets issued cost 10 shillings (£0.50) each (roughly three weeks of wages for ordinary citizens), with the grand prize worth roughly £5,000. This lottery

1404-455: A similar stream of payments. The common use of the term pension is to describe the payments a person receives upon retirement, usually under predetermined legal or contractual terms. A recipient of a retirement pension is known as a pensioner or retiree . A retirement plan is an arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment. Often retirement plans require both

1512-472: A specific amount of income throughout their retirement years. However this income is not usually guaranteed to keep up with inflation, so its purchasing power may decline over the years. On the other hand, defined contribution plans are dependent upon the amount of money contributed and the performance of the investment vehicles used. Employees are responsible for ensuring that their contributions are sufficient to provide for their retirement needs, and they face

1620-574: A tax break depending on the country and plan type. For example, Canadians have the option to open a registered retirement savings plan (RRSP), as well as a range of employee and state pension programs. This plan allows contributions to this account to be marked as un-taxable income and remain un-taxed until withdrawal. Most countries' governments will provide advice on pension schemes. Social and state pensions depend largely upon legislation for their sustainability. Some have identified funds, but these hold essentially government bonds—a form of " IOU " by

1728-819: A tiered system. For a simplified example, suppose there are three employees that pay into a state pension system: Sam, Veronica, and Jessica. The state pension system has three tiers: Tier I, Tier II, and Tier III. These three tiers are based on the employee's hire date (i.e. Tier I covers 1 January 1980 (and before) to 1 January 1995, Tier II 2 January 1995 to 1 January 2010, and Tier III 1 January 2010 to present) and have different benefit provisions (e.g. Tier I employees can retire at age 50 with 80% benefits or wait until 55 with full benefits, Tier II employees can retire at age 55 with 80% benefits or wait until 60 for full benefits, Tier III employees can retire at age 65 with full benefits). Therefore, Sam, hired in June 1983, would be subject to

1836-409: A valuation of the plan's assets and liabilities, carried out by an actuary to ensure that the pension fund will meet future payment obligations. This means that in a defined benefit pension, investment risk and investment rewards are typically assumed by the sponsor/employer and not by the individual. If a plan is not well-funded, the plan sponsor may not have the financial resources to continue funding

1944-544: A way to raise public funding for projects, and this led to the popular belief that lotteries were a form of hidden tax. At the end of the Revolutionary War the various states had to resort to lotteries to raise funds for numerous public projects. The first big lottery on German soil was held in 1614 in Hamburg . In Austria the first lottery was drawn in 1751, during the reign of Empress Maria Theresia , and

2052-527: Is a Malaysian company, which operates in the gambling sector. Founded and incorporated by the Malaysian Government in 1969, it was focused on the commercialisation of 4-Digits –based games. On 1 August 1985, the government in a non- tender privatisation , sold the company to businessman Vincent Tan who merged it into his Berjaya Group . Today, Sports Toto is a wholly owned subsidiary of Berjaya Sports Toto Berhad ( MYX : 1562), which

2160-668: Is a "contribution based" benefit, and depends on an individual's contribution history. For examples, see National Insurance in the UK, or Social Security in the United States of America. Many countries have also put in place a " social pension ". These are regular, tax-funded non-contributory cash transfers paid to older people. Over 80 countries have social pensions. Some are universal benefits, given to all older people regardless of income, assets or employment record. Examples of universal pensions include New Zealand Superannuation and

2268-624: Is a national lottery. It is organized every year since 1812 by a branch of the Spanish Public Administration, now called Loterías y Apuestas del Estado. The name Sorteo de Navidad was used for the first time in 1892. The Spanish Christmas lottery is the second longest continuously running lottery in the world. This includes the years during the Spanish Civil War when the lottery draw was held in Valencia after

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2376-401: Is a plan in which workers accrue pension rights during their time at a firm and upon retirement the firm pays them a benefit that is a function of that worker's tenure at the firm and of their earnings. In other words, a DB plan is a plan in which the benefit on retirement is determined by a set formula, rather than depending on investment returns. Government pensions such as Social Security in

2484-415: Is a type of employment-based Pension in the UK. The 401(k) is the iconic self-funded retirement plan that many Americans rely on for much of their retirement income; these sometimes include money from an employer, but are usually mostly or entirely funded by the individual using an elaborate scheme where money from the employee's paycheck is withheld, at their direction, to be contributed by their employer to

2592-516: Is legally no different from the portability of defined benefit plans. However, because of the cost of administration and ease of determining the plan sponsor's liability for defined contribution plans (you do not need to pay an actuary to calculate the lump sum equivalent that you do for defined benefit plans) in practice, defined contribution plans have become generally portable. In a defined contribution plan, investment risk and investment rewards are assumed by each individual/employee/retiree and not by

2700-643: Is listed on the main market of Bursa Malaysia . It claims to be the largest operator in Malaysia of 4D-based games, with 680 sales outlets offering a total of 7 games. The Mexican Lotería Nacional dates back to the late 18th century. The goal of the Lotería is to create jobs and to "impulse the wealth redistribution process". The Lotería is also a member of the North American Association of State and Provincial Lotteries. As measured by

2808-406: Is operated by Allwyn Entertainment Ltd, who took over from the original operator Camelot Group in 2024. 28% of National Lottery revenue, along with all unclaimed prizes, are distributed as grants to charitable causes. 12% of the revenue from the National Lottery is expected to go to the government, 5% goes to lottery retailers, 5% is retained by the operator for operating costs, and 50% remains for

2916-540: The 2023 United States debt-ceiling crisis by Janet Yellen , the Secretary of the U. S. Treasury to deal with scarcities in federal funds caused by prolonged congressional debates over raising the national debt ceiling . Pension A pension ( / ˈ p ɛ n ʃ ən / ; from Latin pensiō  'payment') is a fund into which amounts are paid regularly during an individual's working career, and from which periodic payments are made to support

3024-664: The Gambling Act 2005 , the maximum amount which can be won by a single ticket is £500,000, or 10% of the total draw proceeds. A minimum of 33% of the ticket price from players' subscriptions supports various trusts, which in turn fund local and international charities and community projects. Some £850 million have been donated. People's Postcode Lottery has a number of celebrity ambassadors, including David Attenborough , Judi Dench , Shobna Gulati , Tim Healy , Stephen Jardine , Ellen MacArthur , Aggie MacKenzie , Carey Mulligan , John Stapleton and Emma Thompson . The lottery

3132-484: The Medal of Honor qualify for a separate stipend. Retirement pay for military members in the reserve and US National Guard is based on a point system. Many countries have created funds for their citizens and residents to provide income when they retire (or in some cases become disabled). Typically this requires payments throughout the citizen's working life in order to qualify for benefits later on. A basic state pension

3240-516: The Virginia Company of London the right to raise money to help establish settlers in the first permanent English colony at Jamestown, Virginia . Lotteries in colonial America played a significant part in the financing of both private and public ventures. It has been recorded that more than 200 lotteries were sanctioned between 1744 and 1776, and played a major role in financing roads, libraries, churches, colleges, canals, bridges, etc. In

3348-736: The Western Canada Lottery Corporation (which serves Western and Northern Canada , excluding British Columbia ), and the British Columbia Lottery Corporation . The five regional lotteries are members of a consortium known as the Interprovincial Lottery Corporation , which administrates national games, including the flagship Lotto 6/49 and Lotto Max . The five lotteries offer draw games, scratch cards, and sports betting —the latter primarily under

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3456-445: The "Bradley Commission") in 1955–56. Pensions may extend past the death of the veteran himself, continuing to be paid to the widow. In the U.S., retired military receive a military retirement pay , not called a "pension" as they can be recalled to active duty at any time. Military retirement pay is calculated on number of years on active duty, final pay grade and the retirement system in place when they entered service. Members awarded

3564-428: The "guarantee" made to employees is that specified (defined) contributions will be made during an individual's working life. There are many ways to finance a pension and save for retirement. Pension plans can be set up by an employer, matching a monetary contribution each month, by the state or personally through a pension scheme with a financial institution, such as a bank or brokerage firm. Pension plans often come with

3672-721: The 1740s, the foundation of Princeton and Columbia Universities was financed by lotteries, as was the University of Pennsylvania by the Academy Lottery in 1755. During the French and Indian Wars , several colonies used lotteries to help finance fortifications and their local militia. In May 1758, the Province of Massachusetts Bay raised money with a lottery for the "Expedition against Canada". Benjamin Franklin organized

3780-435: The 19th century, by the beginning of the 20th century, most forms of gambling, including lotteries and sweepstakes , were illegal in the U.S. and most of Europe as well as many other countries. This remained so until well after World War II. In the 1960s, casinos and lotteries began to re-appear throughout the world as a means for governments to raise revenue without raising taxes. Lotteries come in many formats. For example,

3888-791: The 2011 round 41. The main victory at that time was with 7 correct results and the smallest victory with three actual and one additional number, the number of which was reduced from three to two. The lottery return percentage is 41.1. Another lottery game played in Finland is Vikinglotto , which can be played in all Nordic countries as well as in Estonia , Latvia and Lithuania . In Vikinglotto, six actual numbers and two additional numbers out of 48 are drawn. There are five winning categories: 6 correct, 5 + extra number, 5 correct, 4 correct and 3 correct. In Finland, an average of six million euros in winnings go unredeemed each year. A national lottery

3996-690: The Australian government started their own lottery, named the 'Golden Casket Art Union', with the intention of raising money for charities and projects. Its first draw is credited with raising funds for veterans of World War One. Lotteries in Canada are administered by five regional organizations; the Atlantic Lottery Corporation (which serves Atlantic Canada ), Loto-Québec , the Ontario Lottery and Gaming Corporation ,

4104-636: The Basic Retirement Pension of Mauritius . Most social pensions, though, are means-tested, such as Supplemental Security Income in the United States of America or the "older person's grant" in South Africa . Some pension plans will provide for members in the event they suffer a disability . This may take the form of early entry into a retirement plan for a disabled member below the normal retirement age. The benefits of defined benefit and defined contribution plans differ based on

4212-552: The Calzabigi brothers (Giovanni and Ranieri). Casanova defended the project in a series of conversations with Madame de Pompadour , the French mathematician Jean d'Alembert , Joseph de Pâris Duverney, intendent of the École, and the French minister of foreign affair. Unlike modern lotteries where the state can never lose, in the French lottery the state could lose, but a wise choice of the payoff made losses so improbable as to ensure

4320-459: The English lotteries ran for over 250 years, until the government, under constant pressure from the opposition in Parliament, declared a final lottery in 1826. This lottery was held up to ridicule by contemporary commentators as "the last struggle of the speculators on public credulity for popularity to their last dying lottery". An English lottery, authorized by King James I in 1612, granted

4428-465: The Netherlands ($ 1.8T), Japan ($ 1.7T), Switzerland ($ 1.1T), Denmark ($ 0.8T), Sweden, Brazil and S. Korea (each $ 0.5T), Germany, France, Israel, P.R. China, Mexico, Italy, Chile, Belgium, Spain and Finland (each roughly $ 0.2T), etc. Without the vast body of common law to draw upon, statutory trusts tend to be more uniform and tightly regulated. However, pension assets alone are not a useful guide to

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4536-727: The Republicans were forced to relocate their capital from Madrid. After the overthrow of the Republican government the lottery continued uninterrupted under the Franco regime. Notable prizes on different continents are: (local currency) The first lottery in Australia took place in the 1880s in Sydney. It was a private sweepstakes that was quickly prohibited, despite being moved to other areas such as Queensland and Victoria. In 1916,

4644-641: The Social Security Reserve Fund and France set up the Pensions Reserve Fund ; in Canada the wage-based retirement plan (CPP) is partially funded, with assets managed by the CPP Investment Board while the U.S. Social Security system is partially funded by investment in special U.S. Treasury Bonds. In a funded plan, contributions from the employer, and sometimes also from plan members, are invested in

4752-407: The U.S. since the 1990s. Cash balance plans, for example, provide a guaranteed benefit like a defined benefit plan, but the benefit is expressed as an account balance, like a defined contribution plan. Pension equity plans are a type of cash balance plan that credits employee accounts with a percentage of their pay each year, similar to a defined contribution plan. A Defined Benefit (DB) pension plan

4860-480: The US, defined contribution plans are subject to IRS limits on how much can be contributed, known as the section 415 limit. In 2009, the total deferral amount, including employee contribution plus employer contribution, was limited to $ 49,000 or 100% of compensation, whichever is less. The employee-only limit in 2009 was $ 16,500 with a $ 5,500 catch-up. These numbers usually increase each year and are indexed to compensate for

4968-425: The United States are a type of defined benefit pension plan. Traditionally, defined benefit plans for employers have been administered by institutions which exist specifically for that purpose, by large businesses, or, for government workers, by the government itself. A traditional form of defined benefit plan is the final salary plan, under which the pension paid is equal to the number of years worked, multiplied by

5076-505: The United States include individual retirement accounts (IRAs) and 401(k) plans . In such plans, the employee is responsible, to one degree or another, for selecting the types of investments toward which the funds in the retirement plan are allocated. This may range from choosing one of a small number of pre-determined mutual funds to selecting individual stocks or other financial assets. Most self-directed retirement plans are characterized by certain tax advantages , and some provide for

5184-474: The United States of America and Canada now face chronic pension crises. A defined contribution (DC) plan, is a pension plan where employers set aside a certain proportion (i.e. contributions) of a worker's earnings (such as 5%) in an investment account, and the worker receives this savings and any accumulated investment earnings upon retirement. These contributions are paid into an individual account for each member. The contributions are invested, for example in

5292-564: The assets are truly secured for their benefit. Second, contributions to the vehicle should be tax-deductible to the employer (or at least, a tax deduction should be secured already). And third, to the extent that it has funded the pension liability, the employer should be able to reduce the liability shown on its balance sheet. In the absence of appropriate statute, attempts have been made to invent suitable vehicles with varying degrees of success. The most notable has been in Germany where, until

5400-508: The attainment of normal retirement age (usually age 65). Companies would rather hire younger employees at lower wages. Some of those provisions come in the form of additional temporary or supplemental benefits , which are payable to a certain age, usually before attaining normal retirement age. Due to changes in pensions over the years, many pension systems, including those in Alabama , California , Indiana , and New York , have shifted to

5508-507: The average retirement age and lifespan of the employees, the returns to be earned by the pension plan's investments and any additional taxes or levies, such as those required by the Pension Benefit Guaranty Corporation in the U.S. So, for this arrangement, the benefit is relatively secure but the contribution is uncertain even when estimated by a professional. This has serious cost considerations and risks for

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5616-483: The best interests of the beneficiaries. These jurisdictions account for over 80% of assets held by private pension plans around the world. Of the $ 50.7 trillion of global assets in 2019, $ 32.2T were in U.S. plans, the next largest being the U.K. ($ 3.2T), Canada ($ 2.8T), Australia ($ 1.9T), Singapore ($ 0.3T), Hong Kong and Ireland (each roughly $ 0.2T), New Zealand, India, Kenya, Nigeria, Jamaica, etc. Civil-law jurisdictions with statutory trust vehicles for pensions include

5724-620: The brand Sport Select . The largest single jackpot record in Canadian lottery history was a Lotto Max drawing on January 7, 2020, for a jackpot of $ 70 million. In Finland, Veikkaus began selling lottery tickets in December 1970, and the first draw was televised on January 3, 1971. The lottery turned 40 on January 3, 2011, and by then the lottery had been drawn 2,126 times. Since then, there has been one lottery draw every week. Lottery game time usually ends on Saturday at 9:45 p.m., and

5832-423: The break in service is greater than 365 days, the employee is also covered under Social Security and will be deemed CSRS Offset. Overall benefits paid to CSRS or CSRS Offset employees will remain equitable based on the number of years of creditable service and CSRS formula upon retirement. CSRS and CSRS Offset employees with a break in service more than three days are also eligible to elect coverage under FERS within

5940-441: The degree of financial security provided to the retiree. With defined benefit plans, retirees receive a guaranteed payout at retirement, determined by a fixed formula based on factors such as salary and years of service. The risk and responsibility of ensuring sufficient funding through retirement is borne by the employer or plan managers. This type of plan provides a level of financial security for retirees, ensuring they will receive

6048-475: The draw is usually held on Saturday at 10:15 p.m. Large public holidays on Saturdays may postpone the draw to Sunday. The lottery has two official supervisors; from 3 January 1971 to 29 September 2013, the lottery was televised on Yle TV1 , and in October 2013, the lottery draws were postponed on MTV3 after ten evening news, because according to FICORA , the sponsorship cooperation between Veikkaus and Yle

6156-569: The drawing of lots. The first known European lotteries were held during the Roman Empire , mainly as an amusement at dinner parties. Each guest would receive a ticket, and prizes would often consist of fancy items such as dinnerware. Every ticket holder would be assured of winning something. This type of lottery, however, was no more than the distribution of gifts by wealthy noblemen during the Saturnalian revelries. The earliest records of

6264-478: The drawing of numbers at random for a prize. Some governments outlaw lotteries, while others endorse it to the extent of organizing a national or state lottery. It is common to find some degree of regulation of lottery by governments. The most common regulations are prohibition of sale to minors and licensing of ticket vendors. Although lotteries were common in the United States and some other countries during

6372-674: The effects of inflation. For 2015, the limits were raised to $ 53,000 and $ 18,000, respectively. Examples of defined contribution pension schemes in other countries are, the UK's personal pensions and proposed National Employment Savings Trust (NEST), Germany's Riester plans, Australia's Superannuation system and New Zealand's KiwiSaver scheme. Individual pension savings plans also exist in Austria, Czech Republic, Denmark, Greece, Finland, Ireland, Netherlands, Slovenia and Spain Many developed economies are moving beyond DB & DC Plans and are adopting

6480-517: The employee's plan. This money can be tax-deferred or not, depending on the exact nature of the plan. Some countries also grant pensions to military veterans. Military pensions are overseen by the government; an example of a standing agency is the United States Department of Veterans Affairs . Ad hoc committees may also be formed to investigate specific tasks, such as the U.S. Commission on Veterans' Pensions (commonly known as

6588-440: The employer and employee to contribute money to a fund during their employment in order to receive defined benefits upon retirement. It is a tax deferred savings vehicle that allows for the tax-free accumulation of a fund for later use as retirement income. Funding can be provided in other ways, such as from labor unions, government agencies, or self-funded schemes. Pension plans are therefore a form of "deferred compensation". A SSAS

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6696-494: The employer is the reason given by many employers for switching from defined benefit to defined contribution plans over recent years. The risks to the employer can sometimes be mitigated by discretionary elements in the benefit structure, for instance in the rate of increase granted on accrued pensions, both before and after retirement. The age bias, reduced portability and open ended risk make defined benefit plans better suited to large employers with less mobile workforces, such as

6804-559: The employer offering a pension plan. One of the growing concerns with defined benefit plans is that the level of future obligations will outpace the value of assets held by the plan ( Unfunded mandate ). This "underfunding" dilemma can be faced by any type of defined benefit plan, private or public, but it is most acute in governmental and other public plans where political pressures and less rigorous accounting standards can result in excessive commitments to employees and retirees, but inadequate contributions. Many states and municipalities across

6912-404: The employer tends to pay higher contributions than under defined contribution plans), so such criticism is rarely harsh. The "cost" of a defined benefit plan is not easily calculated, and requires an actuary or actuarial software. However, even with the best of tools, the cost of a defined benefit plan will always be an estimate based on economic and financial assumptions. These assumptions include

7020-438: The end of the 20th century, most occupational pensions were unfunded ("book-reserved") promises by employers. Changes started in 1983. Most national pension systems are based on multi-pillar schemes to ensure greater flexibility and financial security to the old in contrast to reliance on one single system. In general, there are three main functions of pension systems: saving, redistribution and insurance functions. According to

7128-492: The first six months of rehire. Employees who were previously covered under CSRS and do not meet the 5 year retirement coverage rule are automatically covered under the FERS upon rehire. Employees under CSRS (and CSRS Offset) may contribute to TSP as well, but participate as a supplement to their designated pension benefit. Contributions to the TSP are not matched. The fund was utilized as an extraordinary measure in 2015 and also in

7236-643: The form of a guaranteed life annuity , thus insuring against the risk of longevity . A pension created by an employer for the benefit of an employee is commonly referred to as an occupational or employer pension. Labor unions , the government, or other organizations may also fund pensions. Occupational pensions are a form of deferred compensation , usually advantageous to employee and employer for tax reasons. Many pensions also contain an additional insurance aspect, since they often will pay benefits to survivors or disabled beneficiaries. Other vehicles (certain lottery payouts, for example, or an annuity ) may provide

7344-510: The individual; the terminology varies between countries. Retirement plans may be set up by employers, insurance companies, the government, or other institutions such as employer associations or trade unions. Called retirement plans in the United States , they are commonly known as pension schemes in the United Kingdom and Ireland and superannuation plans (or super ) in Australia and New Zealand . Retirement pensions are typically in

7452-400: The investment portfolio to his or her individual needs and financial situation, including the choice of how much to contribute, if anything at all. However, others state that these apparent advantages could also hinder some workers who might not possess the financial savvy to choose the correct investment vehicles or have the discipline to voluntarily contribute money to retirement accounts. In

7560-665: The lottery's structure was designed to contravene British law regarding lotteries. In the UK, winning the lottery is correlated to expressing more preference for the Conservative Party . Winning larger prizes results in a larger shift in favor of the Conservative Party. People's Postcode Lottery is a subscription lottery in the UK. The format was introduced by Dutch company Novamedia BV : players pay at minimum £10 monthly to play, and winning postcodes are announced daily. In accordance with restrictions under

7668-450: The member's salary at retirement, multiplied by a factor known as the accrual rate . The final accrued amount is available as a monthly pension or a lump sum, but usually monthly. In the US, 26 U.S.C.   § 414(j) specifies a defined benefit plan to be any pension plan that is not a defined contribution plan (see below) where a defined contribution plan is any plan with individual accounts. A traditional pension plan that defines

7776-525: The modern-day stockbrokers for various commercial ventures. Most people could not afford the entire cost of a lottery ticket, so the brokers would sell shares in a ticket; this resulted in tickets being issued with a notation such as "Sixteenth" or "Third Class". Many private lotteries were held, including raising money for the Virginia Company of London to support its settlement in America at Jamestown. The English State Lottery ran from 1694 until 1826. Thus,

7884-462: The number of €20 tickets available was reduced from 180 million to 160 million, reducing the potential maximum prize pool to €2.24 billion (70% of ticket sales), with a maximum potential El Gordo of €720 million. A lottery was first held in Thailand (then known as Siam ) in 1874 during the reign of King Chulalongkorn (Rama V), as part of an international fair organised for his birthday. A lottery

7992-621: The outset of the Revolutionary War, the Continental Congress used lotteries to raise money to support the Colonial Army. Alexander Hamilton wrote that lotteries should be kept simple, and that "Everybody ... will be willing to hazard a trifling sum for the chance of considerable gain ... and would prefer a small chance of winning a great deal to a great chance of winning little". Taxes had never been accepted as

8100-431: The pension for older employees than for younger ones (an "age bias"). Defined benefit pensions tend to be less portable than defined contribution plans, even if the plan allows a lump sum cash benefit at termination. Most plans, however, pay their benefits as an annuity, so retirees do not bear the risk of low investment returns on contributions or of outliving their retirement income. The open-ended nature of these risks to

8208-545: The pension plan allows for early retirement, payments are often reduced to recognize that the retirees will receive the payouts for longer periods of time. In the United States, under the Employee Retirement Income Security Act of 1974 , any reduction factor less than or equal to the actuarial early retirement reduction factor is acceptable. Many DB plans include early retirement provisions to encourage employees to retire early, before

8316-408: The person's retirement from work. A pension may be: Pensions should not be confused with severance pay ; the former is usually paid in regular amounts for life after retirement, while the latter is typically paid as a fixed amount after involuntary termination of employment before retirement. The terms " retirement plan " and " superannuation " tend to refer to a pension granted upon retirement of

8424-410: The plan. Traditional defined benefit plan designs (because of their typically flat accrual rate and the decreasing time for interest discounting as people get closer to retirement age) tend to exhibit a J-shaped accrual pattern of benefits, where the present value of benefits grows quite slowly early in an employee's career and accelerates significantly in mid-career: in other words it costs more to fund

8532-620: The poor or in order to raise funds for a wide range of public usages. The lotteries proved very popular and were hailed as a painless form of taxation . The Dutch state-owned Staatsloterij is the oldest running lottery (1726). The English word lottery is derived from the Dutch noun "lot" meaning "fate". The first recorded Italian lottery was held on 9 January 1449 in Milan organized by the Golden Ambrosian Republic to finance

8640-417: The poor. The town records of Ghent , Utrecht , and Bruges indicate that lotteries may be even older. A record dated 9 May 1445 at L'Ecluse refers to raising funds to build walls and town fortifications, with a lottery of 4,304 tickets and total prize money of 1737 florins (worth about US$ 170,000 in 2014). In the 17th century it was quite usual in the Netherlands to organize lotteries to collect money for

8748-598: The possibility of multiple winners. The first recorded signs of a lottery are keno slips from the Chinese Han dynasty between 205 and 187 BC. These lotteries are believed to have helped to finance major government projects like the Great Wall of China . From the Chinese Book of Songs (2nd millennium BC.) comes a reference to a game of chance as "the drawing of wood", which in context appears to describe

8856-445: The private sector in many countries. For example, the number of defined benefit plans in the U.S. has been steadily declining, as more and more employers see pension contributions as a large expense avoidable by disbanding the defined benefit plan and instead offering a defined contribution plan. Money contributed can either be from employee salary deferral or from employer contributions. The portability of defined contribution pensions

8964-418: The prize can be a fixed amount of cash or goods. In this format, there is risk to the organizer if insufficient tickets are sold. More commonly, the prize fund will be a fixed percentage of the receipts. A popular form of this is the "50–50" draw, where the organizers promise that the prize will be 50% of the revenue. Many recent lotteries allow purchasers to select the numbers on the lottery ticket, resulting in

9072-542: The provisions of the Tier I scheme, whereas Veronica, hired in August 1995, would be permitted to retire at age 60 with full benefits and Jessica, hired in December 2014, would not be able to retire with full benefits until she became 65. In an unfunded defined benefit pension, no assets are set aside and the benefits are paid for by the employer or other pension sponsor as and when they are paid. Pension arrangements provided by

9180-569: The public sector (which has open-ended support from taxpayers). This coupled with a lack of foresight on the employers part means a large proportion of the workforce are kept in the dark over future investment schemes. Defined benefit plans are sometimes criticized as being paternalistic as they enable employers or plan trustees to make decisions about the type of benefits and family structures and lifestyles of their employees. However they are typically more valuable than defined contribution plans in most circumstances and for most employees (mainly because

9288-399: The purchasing power of the pension; the higher the inflation rate, the lower the purchasing power of a fixed annual pension. This effect can be mitigated by providing annual increases to the pension at the rate of inflation (usually capped, for instance at 5% in any given year). This method is advantageous for the employee since it stabilizes the purchasing power of pensions to some extent. If

9396-524: The report by the World Bank titled "Averting the Old Age Crisis", countries should consider separating the saving and redistributive functions, when creating pension systems, and placing them under different financing and managerial arrangements into three main pillars. The Pillars of Old Age Income Security: Lottery A lottery (or lotto ) is a form of gambling that involves

9504-404: The risk of market fluctuations that could reduce their retirement savings. However, defined contribution plans provide more flexibility for employees, who can choose how much to contribute and how to invest their funds. Hybrid plans, such as cash balance and pension equity plans, combine features of both defined benefit and defined contribution plans. These plans have become increasingly popular in

9612-439: The selection of investment options and administrative providers. In the United States, the legal definition of a defined contribution plan is a plan providing for an individual account for each participant, and for benefits based solely on the amount contributed to the account, plus or minus income, gains, expenses and losses allocated to the account (see 26 U.S.C.   § 414(i) ). Examples of defined contribution plans in

9720-409: The sponsor/employer, and these risks may be substantial. In addition, participants do not necessarily purchase annuities with their savings upon retirement, and bear the risk of outliving their assets. (In the United Kingdom, for instance, it is a legal requirement to use the bulk of the fund to purchase an annuity.) The "cost" of a defined contribution plan is readily calculated, but the benefit from

9828-443: The state in most countries in the world are unfunded, with benefits paid directly from current workers' contributions and taxes. This method of financing is known as pay-as-you-go , or PAYGO . The social security systems of many European countries are unfunded, having benefits paid directly out of current taxes and social security contributions, although several countries have hybrid systems which are partially funded. Spain set up

9936-402: The state which may rank no higher than the state's promise to pay future pensions. Occupational pensions are typically provided through employment agreements between workers and employers, and their financing structure must meet legislative requirements. In common-law jurisdictions, the law requires that pensions be pre-funded in trusts, with a range of requirements to ensure the trustees act in

10044-415: The stock market, and the returns on the investment (which may be positive or negative) are credited to the individual's account. On retirement, the member's account is used to provide retirement benefits, sometimes through the purchase of an annuity which then provides a regular income. Defined contribution plans have become widespread all over the world in recent years, and are now the dominant form of plan in

10152-673: The top price now up to 32 million baht . Shrines of local folklore and popular religion , such as Nang Ta-Khian , are often propitiated in order to be lucky in the Thai lottery draw. The principal lottery in the United Kingdom is the National Lottery , a state-franchised lottery sanctioned by the Gambling Commission (formerly the National Lottery Commission ), and established in 1994. It

10260-558: The total distribution of occupational pensions around the world. It will be noted that four of the largest economies (Germany, France, Italy and Spain) have very little in the way of pension assets. Nevertheless, in terms of typical net income replacement in retirement, these countries rank well relative to those with pension assets. These and other countries represent a fundamentally different approach to pension provision, often referred to as "intergenerational solidarity". Intergenerational solidarity operates to an extent in any country with

10368-492: The total prize fund of which 5% is diverted to a Super Draw fund, leaving 45% for normal prizes. Northern & Shell also operates a commercial lottery known as The Health Lottery , which distributes its revenue to support health-related charities and causes. To comply with the Gambling Act, which forbids other parties from operating a national lottery, The Health Lottery operates as an umbrella corporation representing

10476-539: The total prize payout, the Spanish Christmas Lottery is considered the biggest lottery worldwide. In 2012, if all of the tickets had been sold, the total amount payout of prizes would have been worth €2.52 billion (70% of ticket sales). The total amount of all prizes of the first category called El Gordo ("the fat one") was €720 million which was distributed among 180 winning tickets (billetes) that win €4 million each. For 2013, due to falling demand,

10584-537: The war against the Republic of Venice . However, it was in Genoa that Lotto became very popular. People used to bet on the name of Great Council members, who were drawn by chance , five out of ninety candidates every six months. This kind of gambling was called Lotto or Semenaiu . When people wanted to bet more frequently than twice a year, they began to substitute the candidates names with numbers and modern lotto

10692-645: The world thanks to online lottery agents and bookkeepers. Some states have tried to combat this with different measures. The state government of Tamil Nadu decided to ban GooglePay since it allows payments to online lotteries and awards its users in India with Scratchcards . Indian lotteries provide a substantial economic boost for the states that provide them. In the fiscal year 2017–2018 Kerala collected GST worth Rs 908 crore and state revenue of Rs 1,691 crore. Lottery industry start operated in Malaysia on early 1969 by Berjaya Group . Sports Toto Malaysia Sdn Bhd

10800-546: Was a fiasco, since the tickets were very costly and the social classes which could afford them opposed the project. Between 1757 and 1836, for a period of about 80 years with some interruption during the French Revolution , the French state ran a profitable Loterie . The project was born out a series of initiatives to fund the École militaire . Instrumental to the birth of the Loterie were Giacomo Casanova and

10908-518: Was born, to which both modern legal lotteries and the illegal numbers game can trace their ancestry. King Francis I of France discovered the lotteries during his campaigns in Italy and decided to organize such a lottery in his kingdom to help the state finances. The first French lottery, the Loterie Royale , was held in 1539 and was authorized with the edict of Châteaurenard . This attempt

11016-509: Was designed to raise money for the "reparation of the havens and strength of the Realme, and towardes such other publique good workes", including the rebuilding of ports and new ships for the royal fleet. Each ticket holder won a prize, and the total value of the prizes equalled the money raised. Prizes were in the form of both "ready money" and valuable commodities such as silver plate, tapestries, and fine linen cloth. Additionally, each participant

11124-515: Was granted immunity from one arrest, "so long as the crime wasn't piracy, murder, felonies, or treason." The lottery was promoted by scrolls posted throughout the country showing sketches of the prizes. Thus, the lottery money received was an interest-free loan to the government during the three years that the tickets ('without any Blankes') were sold. In later years, the government sold the lottery ticket rights to brokers, who in turn hired agents and runners to sell them. These brokers eventually became

11232-458: Was illegal. In the current lottery played in Finland, the player chooses seven numbers between 1 and 40 (initially, until the autumn of 1980, six numbers between 1 and 40 were chosen, then for a few years seven numbers between 1 and 37 and then seven numbers between 1 and 39). In the draw, seven numbers and one (previously three and then two) additional numbers are drawn; the line price is 1 euro. The profit categories were changed, for example, from

11340-729: Was named Lotto di Genova since it was based on 90 numbers. Spain offers a wealth of lottery games, the majority of which are operated by Loterías y Apuestas del Estado with the remaining lotteries operated by the ONCE and the Catalan government. The first Spanish lottery game was played back in 1763 and, over the last two centuries, playing the lottery in Spain has developed into a tradition. The Spanish Christmas Lottery (officially Sorteo Extraordinario de Navidad [soɾˈteo ekstɾaorðiˈnaɾjo ðe naβiˈðað] or simply Lotería de Navidad [loteˈɾia ðe naβiˈðað])

11448-515: Was organised in 1917 by the British government with Thai consent to help finance Britain's war effort. Lotteries were held intermittently until 1933, when they became regularised under the finance department. The present Thai lottery is managed by The Government Lottery Office, a state enterprise managed by the Ministry of Finance . The drawings take place on the 1st and 16th of each month, with

11556-1004: Was reintroduced in 1933. There are many lotteries in India. All lotteries are run by state governments but only 13 of the 28 Indian states allow them. The leader within Indian lotteries is the Kerala State Government that started their lottery department in 1967 following the country wide ban on private lotteries. The Kerala State Lotteries became an inspiration for other Indian states that started their own lotteries. As of right now lotteries are available in Kerala , Goa , Maharashtra , Madhya Pradesh , Punjab , West Bengal , Assam , Arunachal Pradesh , Meghalaya , Manipur , Sikkim , Nagaland and Mizoram . The public ban on lotteries in other states has not been very effective since several lottery providers allow Indians to play online. Indian players can play lotteries from all over

11664-531: Was the subject of a Channel 4 documentary, The Welsh Valley That Won the Lottery , about the residents of Rhymney who won in May 2022. Lotteries are operated at the state level in the U.S.; 45 states and 3 territories operate state lotteries, and nearly all of them are members of consortiums that operate regional games, and the two near-national games Mega Millions and Powerball . In November 2022, Powerball set

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