Transforming Private Pensions: An Actuarial Model to Face Long-Term Costs

Esteban, Joseba Iñaki de la Peña; Fernández-Ramos, M. Cristina; Bajo, Asier Garayeta; Martín, Iratxe D.

doi:10.3390/math10071082

Cited by 3 publications

(1 citation statement)

References 48 publications

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“…Por ello, habría que identificar a cada edad el factor de equidad actuarial que refleje la redistribución interna de los costes y las prestaciones en un plan de pensiones a través del ajuste del pago de la pensión en función de las tasas de mortalidad específicas. Con ello, un individuo sano recibe la pensión a la que tiene derecho, y al pasar a ser dependiente, recibirá la pensión inicial modificada con el factor de equidad, proporcional a la menor duración de la vida del dependiente (De la Peña et al, 2022).…”

Section: Conclusionesunclassified

El problema del superávit por dependencia en los planes de pensiones de empleo

Esteban

Martín

2022

Anales Del Instituto De Actuarios Españoles

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Resumen Dentro de los productos de previsión social complementaria se encuentran los planes de pensiones de empleo tanto de aportación como de prestación definida. Su finalidad es compensar al trabajador por jubilación, muerte, supervivencia o invalidez. Ni en la contratación ni a lo largo de la vida laboral se tiene en cuenta la situación de dependiente, que sí que repercute cuando el trabajador se convierte en beneficiario de una prestación. Si decide percibir una pensión periódica el capital correspondiente a la edad de jubilación se transforma en una renta vitalicia (en caso de aportación definida) o directamente comienza a percibir la renta vitalicia inicialmente determinada (prestación definida). En estos casos se calcula bajo una base técnica concreta que contempla una expectativa de mortalidad determinada. Sin embargo, hay experiencia internacional que evidencia que la mortalidad del dependiente es superior a la población general y asegurada, por lo que el dependiente, de percibir la misma pensión, la recibiría por menor plazo. El objetivo del presente trabajo es determinar el impacto económico que genera el cambio de estatus en el beneficiario cuando recibe esa renta vitalicia. Hay que subrayar que, en la renta vitalicia, el riesgo biométrico es asumido por el asegurador y que una menor esperanza de pago debido a que el beneficiario de la pensión pase al estado de dependiente conlleva un beneficio económico, pues esa ganancia no se reparte a la familia del beneficiario. Se crea un superávit al abonar la misma prestación. Así, el empleo de una adecuada asunción de mortalidad produce una reducción de la provisión matemática de pago, lo que redunda en liberar capital y tener un menor capital de solvencia requerido. Palabras clave: planes de pensiones, dependencia, prestación definida, matemática actuarial. Abstract Within the complementary social welfare products, we find both defined-contribution and defined-benefit employee pension plans. Their purpose is to compensate the worker for retirement, death, survival or disability. Dependence status is not taken into account either at the time of contracting or during working life, but it is taken into account when the worker becomes a benefit recipient. If the individual decides to receive a periodic pension, the capital sum at retirement age is converted into a life annuity (in the case of defined contribution) or the pension beneficiary starts receiving the initially determined life annuity directly (defined benefit). In these cases, it is calculated on a specific technical basis that takes into account a specific mortality expectancy. However, international experience shows that the mortality rate of the dependent is higher than that of the general and insured population, so that the dependent will receive the same pension for a longer period of time. The aim of this paper is to determine the economic impact of the change in the beneficiary’s status when receiving this annuity. It should be stressed that, in the life annuity, the biometric risk is assumed by the insurer and that a lower payment expectancy due to the pension beneficiary’s change to dependent status entails an economic benefit, as this gain is not distributed to the beneficiary’s family. A surplus is created by paying the same benefit. Thus, the use of an appropriate mortality assumption results in a reduction of the mathematical provision for payment, which frees up capital and results in a lower solvency capital requirement. Keywords: pension plans, long-term care, defined benefit, actuarial mathematics.

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Section: Conclusionesunclassified

El problema del superávit por dependencia en los planes de pensiones de empleo

Esteban

Martín

2022

Anales Del Instituto De Actuarios Españoles

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Pension level, subjective wellbeing, and preference of care model among elderly people: An empirical study based on structural equation modeling

Shao

Li²

2023

Front. Public Health

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The problem of population aging is becoming increasingly serious, and the elderly care model has become the social focus in China. It is urgent to improve the traditional home based elderly care model and increase the recognition of the residents for the socialized elderly care model. Based on the data of the 2018 China Longitudinal Aging Social Survey (CLASS), this paper uses structural equation model (SEM) to empirically test the impact of the elderly group's social pension level and subjective well–being on their choice of various care models. The results show that the improvement of elderly's pension level can significantly inhibit their choice of home–based care model, and promote their choice of community and institution care model. Subjective well–being can play a mediating role in the home–based and community care model choices, but the indirect approach mediated by subjective well–being only plays a supplementary role. In addition, the heterogeneity analysis shows that there are discrepancies in the impact and path for the elderly with different gender, age, household registration, marital status, health status, education level, number of children, and gender of children. The results of this study will help the improvement and development of social pension policy, optimizing the structure of residents' elderly care model and the process of “active aging”.

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Proposal for Mathematical and Parallel Computing Modeling as a Decision Support System for Actuarial Sciences

Santos

Gomes

Júnior

et al. 2023

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This paper aims to find the actuarial tables that best represent the occurrences of mortality and disability in the Brazilian Armed Forces, thus providing a better dimensioning of the costs of military pensions to be paid by the pension system. To achieve this goal, an optimization software was developed that tests 53 actuarial tables for the death of valid military personnel, 21 boards for entry into the disability of assets, and 21 boards for mortality of invalids. The software performs 199 distinct adherence tests for each table analyzed through linear aggravations and de-escalations in the probabilities of death and disability. The statistical–mathematical method used was the chi-square adherence test in which the selected table is the one with the null hypothesis “observed data” equal to the “expected data” with the highest degree of accuracy. It is expected to bring a significant contribution to society, as a model of greater accuracy reduces the risk of a large difference between the projected cost and the cost observed on the date of the year, thus contributing to the maintenance of public governance. Additionally, the unprecedented and dual nature of the methodology presented here stands out. As a practical contribution, we emphasize that the results presented streamline the calculation of actuarial projections, reducing by more than 90% the processing times of calculations referring to actuarial projections of retirees from the armed forces. As a limitation of the study, we emphasize that, although possibly replicable, the database was restricted only to the Brazilian Armed Forces.

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Transforming Private Pensions: An Actuarial Model to Face Long-Term Costs

Cited by 3 publications

References 48 publications

El problema del superávit por dependencia en los planes de pensiones de empleo

El problema del superávit por dependencia en los planes de pensiones de empleo

Pension level, subjective wellbeing, and preference of care model among elderly people: An empirical study based on structural equation modeling

Proposal for Mathematical and Parallel Computing Modeling as a Decision Support System for Actuarial Sciences

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