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dc.contributor.authorCui, Zijing
dc.date.accessioned2021-01-05 21:51:23 (GMT)
dc.date.available2021-01-05 21:51:23 (GMT)
dc.date.issued2021-01-05
dc.date.submitted2020-12-07
dc.identifier.urihttp://hdl.handle.net/10012/16608
dc.description.abstractAs Traditional Defined Benefit (DB) plans are declining, more companies are switching to Defined Contribution (DC) plans. However, DC plans have significant disadvantages since employees bear all investment and longevity risk. Hybrid pension plans, lying between DB and DC plans, are designed to meet the needs of both contributors and beneficiaries with better ways of sharing the risks. In this paper, based on the mathematical results from intergenerational risk sharing plans(Hardy et al. (2020)), we design a new profit sharing hybrid pension plan. We compare the solvency, contributions, and benefits between new hybrid plan with the traditional DB plan. We find that the new hybrid design can better manage the volatility of contributions, and it can offer a guaranteed base income that isn’t provided in traditional DB plan if considering the risk of default. The new hybrid plan also offers some flexibility to balance the preference between benefit security and potential for higher income.en
dc.language.isoenen
dc.publisherUniversity of Waterlooen
dc.titleA profit Sharing Pension Planen
dc.typeMaster Thesisen
dc.pendingfalse
uws-etd.degree.departmentStatistics and Actuarial Scienceen
uws-etd.degree.disciplineActuarial Scienceen
uws-etd.degree.grantorUniversity of Waterlooen
uws-etd.degreeMaster of Mathematicsen
uws-etd.embargo.terms0en
uws.contributor.advisorHardy, Mary
uws.contributor.affiliation1Faculty of Mathematicsen
uws.published.cityWaterlooen
uws.published.countryCanadaen
uws.published.provinceOntarioen
uws.typeOfResourceTexten
uws.peerReviewStatusUnrevieweden
uws.scholarLevelGraduateen


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