Financial fairness and conditional indexation
Risk management in funded pension systems
Industry Paper
22 oktober 2015
Collective pension contracts can generate advantages for their participants by implementing forms of risk sharing. To ensure the continuity of a collective scheme, it has to be monitored whether the contracts offered to participants are financially fair in terms of market value. In this paper, Torsten Kleinow (Heriot-Watt University) and Hans Schumacher (TiU) use a stylized overlapping generations model to study financial fairness for a conditional indexation scheme.