| |
|
|
|
|
|
|
|
|
EAA Pension Days 2023
|
|
|
|
|
|
|
|
|
|
|
We are pleased to announce for the first time the
EAA Pension Days 2023.
Look forward to several online events in autumn where we will
highlight various aspects of pensions:
|
|
|
|
|
|
|
|
|
Web Session: "How Visualization and Computer Science
(AI) Could Support Pension Funds" on 9 October 2023, 8:30-13:00
CEST
|
|
|
|
|
|
|
|
|
The supreme body of the pension fund (board of trustees) is
responsible for the overall management of the pension fund. The
non-transferable and inalienable duties of the supreme body include
the following tasks among others: the setting of the financing
system and comprehensibly designing, monitoring, and controlling
the asset management to improve the returns and benefits for the
members of the pension fund. Since being a member of the board of
trustees is not a full-time job, the scope of duties is enormous:
meeting the aforementioned legal requirements requires a lot of
time and expertise. Pension fund accredited actuaries, investment
consultants, auditors as well as pension fund management teams
should fully support the board of trustees to make proper
decisions.
The reliable forecast of liabilities is very important for the
determination of the pension funds' financing system and its
control (with risk budgeting). Since many liability parameters
depend on the development of yield curves and inflation, it is
worthwhile to prepare the analysis of their historical data,
visualize them and additionally forecast them reliably.
The aim of this web session is to show how useful the yield curve
and inflation forecasting are with the deep learning approach, the
visualization of the results and the liability forecast based on
them. These approaches are implemented using Python
(Anaconda/Jupiter) and R-Project. This type of analysis helps the
board of trustees to make their decisions and to better understand
the forecast results (compared to affine models). In addition, we
will show that such approaches are useful for forecasting
international accounting results (IFRS, US GAAP, IPSAS) and for
preparing asset allocation to be the strong third
contributor.
Your early-bird registration fee is € 200.00 plus
19% VAT until 28 August 2023. After this date, the
fee will be € 270.00 plus 19% VAT.
further details
|
|
|
|
|
|
|
|
|
Web Session: "Notional Funding: How an Imaginary Pension
Fund Can Help Steer a PAYG System" on 10 October 2023, 10:00-12:00
CEST
|
|
|
|
|
|
|
|
|
The aging population presents serious challenges for traditional
pay-as-you-go pension systems. Longer life expectancies increase
pension expenses while low birth rates weaken the future
contribution base.
A buffer fund can help alleviate these problems. However, this
raises questions about how much insured should contribute and how
big the fund should be. Ideally, the contribution rate should be
stable, but it also needs to be based on observable quantities and
transparent rules.
Notional funding (NF) provides a coherent solution to this
problem. It takes the liabilities of the PAYG system as seriously
as those of the funded system. In NF, the PAYG system is treated as
if it were a fund-ed system without assets to cover
liabilities.
In NF, the pension contribution consists of two components: the
funded contribution (C1) and an additional contribution (C2). The
funded contribution equals the present value of the annual accrual.
The additional contribution corresponds the imputed re-turn on
missing assets. If the total actual contribution equals the sum of
these two components (C1+C2), the level of unfunded liabilities
remains stable. However, there may be cases where a decreasing
unfunded liability is desirable, such as when the pension system
faces declining labour due to low fertility rates.
The NF model also provides a consistent basis for automatic
adjustment of pension expenditures. In the extreme, the
contribution rate can be fixed, transferring the need to adjust
financing entirely to pension benefits. However, necessary
adjustments can be divided to adjust pension benefits and
contributions in the desired ratio.
In this web session, we will illustrate the NF model in the
context of a simple old-age pension system, where the contribution
level and/or benefit level are adjusted annually based on different
return and birth rate scenarios. The effects of different policies
will be examined on a yearly and generational basis.
Your early-bird registration fee is € 100.00 plus
19% VAT until 29 August 2023. After this date, the
fee will be € 140.00 plus 19% VAT.
further details
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Web Session: "Cash Balance Pension Schemes" on 11
October 2023, 9:00-12:15 CEST
|
|
|
|
|
|
|
|
|
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 starting idea of CB (which are still fully
funded solutions) is similar to DC: The plan describes a level of
contribution accrued for each affiliate. Then these notional
contributions are accumulated using a notional return (fixed rate
or interest rate index defined ex ante) to deliver at retirement
the pension benefits. The return is notional because on the asset
side, the real financial returns of the pension fund can be
different. This discrepancy of returns generates real contributions
to be paid by the sponsor, different from the notional
contributions allocated to the individual accounts.
Your early-bird registration fee is € 150.00 plus
19% VAT until 30 August 2023. After this date, the
fee will be € 205.00 plus 19% VAT.
further details
|
|
|
|
|
|
|
|
|
