Generational transfers within the occupational pension system in Switzerland

Details

Serval ID
serval:BIB_8AB22C545EB3
Type
Article: article from journal or magazin.
Collection
Publications
Institution
Title
Generational transfers within the occupational pension system in Switzerland
Journal
European Actuarial Journal
Author(s)
Arnold S., Jijiie A.
ISSN
2190-9733
2190-9741
Publication state
Published
Issued date
02/01/2019
Peer-reviewed
Oui
Language
english
Abstract
Solidarity, a key element of any social security system, can be defined as the total intended redistributions that take place between the existent groups within the system, with the purpose of helping each other. However, unintended redistributions also exist, affecting the fairness of the system and leading to animosities between these groups, in particular between active members and pensioners. Aiming to broaden the discussions on this topic, we identify the main sources of transfers between active and retired members pertinent to the Defined Contribution schemes within the Swiss occupational pension system, as such transfers are at the core of many political discussions. Thus we develop a tractable methodology allowing the pension funds to quantify these transfers. We then provide a numerical illustration of our framework, which shows that both active members and pensioners can benefit from unintended redistributions. Nevertheless, our methodology is meant to be adapted on a case-by-case basis in order to yield a better picture of the situation of each pension fund.
Keywords
Pension funds, Unintended redistributions, Generational transfers, Switzerland, Occupational pensions
Create date
12/02/2019 16:33
Last modification date
21/08/2019 6:17
Usage data