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EAA Web Session

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Traditionally, occupation pension plans are fully funded and based on an architecture either in Defined Benefits (DB) or in Defined Contributions (DC). In DB, the plan describes the level of pension benefits (generally based on salaries and career duration) and the contributions have then to be actuarially computed. In DC, the plan describes the level of contributions and the benefits are simply generated by the financial accumulation of these contributions. However, hybrid solutions have emerged in the international pension landscape, trying to combine in some sense the logic of DB and of DC. These new kinds of pension schemes have appeared as well for the first pillar (social security) (Notional accounts or NDC for instance) as for occupational pension plans (Cash Balance- CB).

The objective of this web session is to give an overview of these Cash Balance mechanisms and illustrate some interesting actuarial problems of the topic. In a first part, we will define the concept of CB and compare it with other pension schemes. We will present advantages and disadvantages for all the parties. We will look at the effect of introducing a legal minimum return in the system. The second part is devoted to more quantitative studies. First, we will develop some financial valuation issues induced by the technique. We will look also at preferences between CB and DC in terms of utility function as well for the sponsor as for the affiliates; we will show in particular that we can express the problem as the Nash equilibrium of a game between the sponsor and the affiliates.

Your early-bird registration fee is € 150.00 plus 19% VAT for bookings by 30 August 2023. After this date, the fee will be € 205.00 plus 19% VAT.

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Coming soon...

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Web Session CERA, Module B: Taxonomy, Modelling and Mitigation of Risks | 18-22 September 2023

Telematics and Actuarial Pricing | 27 September 2023

Actuarial Modeling for Cyber Risk | 12/13 October 2023

...and a lot more! Explore our website for more information or download our overview.

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actuarial-academy.com

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