Wharton Pension Research Council Working Papers
 

Title

Risk-sharing Alternatives for Pension Plan Design: An Overview and Case Studies

Document Type

Working Paper

Date of this Version

9-1-2014

Abstract

Pension plan designs range from those that place virtually all of the risk on the plan (and plan sponsor) to those that place all of the risk on the individual covered by the plan. Traditional plans include designs that are at both ends of this spectrum, but there is increasing attention to plans that share risk. This chapter identifies different risks and discusses methods of sharing risk, both traditionally and in recent plan designs. Two case studies illustrate recent developments. We include a discussion of future directions.

Comments

The published version of this Working Paper may be found in the 2016 publication: Reimagining Pensions.

Keywords

Pension plan risk, risk sharing, pension plan design, defined benefit, defined contribution, risk adjustment, hybrid plan

Working Paper Number

WP2014-09

Copyright/Permission Statement

All opinions, errors, findings, interpretations, and conclusions of this paper represent the views of the authors and not those of the Wharton School or the Pension Research Council. © 2014 Pension Research Council of the Wharton School of the University of Pennsylvania. All rights reserved.

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Date Posted: 26 June 2019