Structure of Intergenerational Risk-Sharing Plans: Optimality and Fairness

2020 ◽  
Author(s):  
Xiaobai Mike Zhu ◽  
Mary R. Hardy ◽  
David Saunders
Keyword(s):  
Risk Sharing ◽  
Intergenerational Risk ◽  
Intergenerational Risk Sharing

scholarly journals Political intergenerational risk sharing

2010 ◽  
Vol 94 (9-10) ◽  
pp. 628-637 ◽  
Author(s):  
Marcello D'Amato ◽  
Vincenzo Galasso
Keyword(s):  
Risk Sharing ◽  
Intergenerational Risk ◽  
Intergenerational Risk Sharing

FAIR TRANSITION FROM DEFINED BENEFIT TO TARGET BENEFIT

2021 ◽  
pp. 1-32
Author(s):  
Xiaobai Zhu ◽  
Mary Hardy ◽  
David Saunders
Keyword(s):  
Risk Sharing ◽  
Defined Benefit ◽  
Short Term ◽  
Intergenerational Risk ◽  
Transition Plan ◽  
Intergenerational Risk Sharing ◽  
Theoretical Results ◽  
Scenario Generator

ABSTRACT Target benefit (TB) plans that incorporate intergenerational risk sharing have been demonstrated to be welfare improving over the long term. However, there has been little discussion of the short-term benefits for members in a defined benefit (DB) plan that is transitioning to TB. In this paper, we adopt a two-step approach that is designed to ensure the long-term sustainability of the new plan, without unduly sacrificing the benefit security of current retirees. We propose a cohort-based transition plan for reducing intergenerational inequity. Our study is based on simulations using an economic scenario generator with some theoretical results under simplified settings.

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