Collective Defined Contribution Schemes as an Alternative to Pension Plans

Traditional pension plans, such as defined contribution and defined benefit, face several risks: being the most known, the increase of the life expectancy. To reduce this risk, many hybrid pensions plans have been proposed, to mitigate this risk. The objective of this study is to explore the financi...

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Detalles Bibliográficos
Autores: Denise Gómez Hernández, Michael Demmler
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2022
País:México
Institución:Universidad Autónoma de Querétaro
Repositorio:Redalyc-UAQ
OAI Identifier:oai:redalyc.org:571869209004
Acceso en línea:https://www.redalyc.org/articulo.oa?id=571869209004
https://www.redalyc.org/journal/5718/571869209004/
https://www.redalyc.org/journal/5718/571869209004/html/
https://www.redalyc.org/journal/5718/571869209004/571869209004.epub
https://www.redalyc.org/journal/5718/571869209004/movil
https://doi.org/10.32870/myn.vi45.7651
Access Level:acceso abierto
Palabra clave:Multidisciplinarias (Ciencias Sociales)
Pensions
financial viability
actuarial viability
collective defined contribution
Descripción
Sumario:Traditional pension plans, such as defined contribution and defined benefit, face several risks: being the most known, the increase of the life expectancy. To reduce this risk, many hybrid pensions plans have been proposed, to mitigate this risk. The objective of this study is to explore the financial and actuarial sustainability of a hybrid pension plan known as collective defined contribution (CDC) by accumulating a pension fund with the methodology found in Aon (2020). The results of the simulations in this study show that the replacement rate defined in the design of a CDC pension plan is reached by all the members in the plan. Moreover, that through the same pension fund, deficits and gains are financed by it.Jel code: J08, J26.