Show simple item record

dc.contributor.authorCui, Zijing 21:51:23 (GMT) 21:51:23 (GMT)
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.publisherUniversity of Waterlooen
dc.titleA profit Sharing Pension Planen
dc.typeMaster Thesisen
dc.pendingfalse and Actuarial Scienceen Scienceen of Waterlooen
uws-etd.degreeMaster of Mathematicsen
uws.contributor.advisorHardy, Mary
uws.contributor.affiliation1Faculty of Mathematicsen

Files in this item


This item appears in the following Collection(s)

Show simple item record


University of Waterloo Library
200 University Avenue West
Waterloo, Ontario, Canada N2L 3G1
519 888 4883

All items in UWSpace are protected by copyright, with all rights reserved.

DSpace software

Service outages