The capital gains embedded in exercised stock options, for example, are included in compensation of employees (and as a charge against profits) in the NIPA. These gains are taxed as regular income. BIS Review 73/2001  3  Capital gains have also significantly influenced the measured personal saving rate as a result of the NIPA treatment of the pension fund sector.
In particular, because defined-benefit pensions are considered part of the “personal sector”, employer contributions to such plans are included in disposable income, as are the interest, dividend, and rental incomes received by these plans. In contrast, benefit payments to individuals are not part of personal income because they are considered intrasectoral transfers.