Pension Industry Research Articles

Current situation and prospect of training system of elderly caregivers from the view of treatment-care combination

With the rapid development of economy and society, increasing of population four tendencies, the development of pension industry faces the enormous opportunity and challenge. How to integrate limited health care and pension service resource to satisfy diversified demand of the aged becomes the the focus of social concern. This paper reviews the training on elderly caregivers in the view of treatment and care combination to construct a scientific and reasonable training model for elderly caregivers, broaden ways of training for personnel providing pension service so as to provide a theoretical basis for building a high-level and high-quality elderly caregivers group to reduce the crisis of aging tendency. Key words: In-service training; Treatment-care combination; Elderly caregivers; Training system

Optimal Risk-Sharing in Pension Funds When Stock and Labor Markets are Co-Integrated

A well established believe in the pension industry is that collective pension funds should take more stock market risk (compared to individual retirement accounts) since risk may be shared with future generations. We extend the OLG model of Gollier (2008) by adding labor income risk in the spirit of Benzoni, Collin-Dufresne, and Goldstein (2007) and show that this idea may be misguided. For the empirical range of parameter values reported by Benzoni et. al., we find that optimal risk-sharing actually implies that collective pension funds should take less stock market risk, not more. If labor income and dividend income are co-integrated, efficient risk-sharing policies should transfer risk from future generations to current generations instead of the other way around. Furthermore, we find that the potential welfare gains from intergenerational risk-sharing are significantly lowered.

Life Expectancy and Retirement Age

The extension of life has exerted more and more pressure on the Chinese pension industry. In order to alleviate this pressure, more and more experts and scholars put forward policy recommendations for postponing retirement. At present, the specific reform scheme of the retirement age in China has not yet been introduced, and there are still some disputes on how to carry out the policy of postponing retirement. However, from the perspective of international experience, some countries or regions adjust retirement age directly or indirectly according to the life expectancy of population. This practice is important reference for our country. Whether China should build the adjustment mechanism of life expectancy and retirement age has very high research value. Under this background, this paper investigates the feasibility of establishing the linkage mechanism of life expectancy and retirement age from a perspective of a social planner through mathematical deduction and theoretical research, and further explores the adjustment formula between them. It hopes that this research can enrich and develop the application of overlapping generations model to the pension problem, and give relevant reference to government departments regarding the issue of postponing retirement. This paper, based on two-period overlapping generations model, introduces the retirement factors, and builds a general equilibrium framework in four aspects of individual behavior, enterprise behavior, government behavior and capital market equilibrium under the assumptions of completely competitive market, full employment and government control of the retirement age. With the optimality principle and the comparative static analysis, we find that when the economy is in a stable state, life expectancy with the maximum social welfare is positively related to the retirement age, manifesting a negative inverse proportion function form. Based on this functional relation, we use the parametric estimation method and assignment simulation to solve the adjustment formula of the life expectancy and retirement age of the population, and put forward an adjustment comparison table between them. According to the calculation results and prediction of life expectancy by China Issues National Plan on Population Development（between 2016 to 2030）, we recommend extending the retirement age to 65 years before 2030. In the end, by testing the model, on the premise of keeping the pension balance, we find that if there is no adjustment mechanism between the life expectancy and retirement age, sudden changes in life expectancy will reduce the pension payment, and can lead to the losses of social welfare. Therefore, based on the findings of this paper, and in the context of the extended life expectancy of Chinese population, we suggest that the governments should consider building the adjustment mechanism of life expectancy and retirement age, and increase the retirement age with the extension of life expectancy.

Research on Information Service of Home Care in Internet Plus Era

Abstract In the “Internet plus” era, information technology will be applied to the community home-based care services is a new initiative to create wisdom of the pension industry. With the full use of the Internet and large data, the new model of home care for the elderly needs the active participation of the social organizations (enterprises), and the correct guidance of the government. Strengthening the top-level design of government, establishing the information standard and enhancing the applicability of platform will undoubtedly speed up the informatization construction of home care platform and promote the development of our pension system.

基于供给侧改革下的养老产业发展路径研究—以福建省漳州市为例

基于供给侧改革下的养老产业发展路径研究—以福建省漳州市为例

Institutional Mismatch, Party Reputation, and Industry Interests: Understanding the Politics of Private-Heavy Pension Systems

Private-heavy welfare systems, in which low or moderate state benefits are topped up by private welfare arrangements, are expected to undermine political support for the extension of social rights and perpetuate benefit fragmentation over time. And where low state benefits are means tested, political support is expected to be particularly prone to erosion. In this article I develop the argument that the combination of private pensions and means-testing does not always perpetuate fragmentation. Rather, it structures the policy preferences of pension industry representatives and right-of-centre parties such that these actors push for reforms to make the state pension more universal. I make my argument by examining the reform history of nine private-heavy pension systems in the three decades since 1980. A fuzzy-set qualitative comparative analysis maps the conditions under which universalizing reforms have occurred, and two case studies link institutional conditions to reform outcomes via the policy preferences of key political actors.

Institutional and individual investors: Saving for old age

This paper brings together the academic literature on individual and institutional investors in order to understand the nature of difficulties faced by them and set the background for the Special Issue. This introductory article and the papers in the Special Issue contribute to the debate on how to support individuals in their savings commitments and investment decision-making and whether and how institutional investors have fulfilled their role in supporting the development of the funded pension industry. There are three main conclusions: (i) individual investors are not ready for the role that has been assigned to them in the pension industry, (ii) institutional investors are a long way short of establishing healthy relational contracts and trustworthy relationships with their clients, and (iii) more effective regulation may be needed.

The State of Public Pension Funding: Are Government Employee Plans Back on Track?

The public-sector pension industry is claiming a comeback from losses suffered during the Great Recession. But this recovery is greatly exaggerated: even years past the end of the recession, most pension sponsors are unable to their full annual contributions, and pensions are taking as much investment risk as ever. The first step to effective pension reforms is an honest, accurate view of the costs and risks that public plans impose on government budgets and taxpayers.

The real risk in pension forecasting

The purpose of this paper is to shed light on some of the flaws in the forecasting approach undertaken by the pension industry. Specifically, it considers the treatment of inflation and shows that the current modeling framework is too simplistic. I identify the flaws of the existing regulatory framework and provide an alternative full model framework constructed around the three-factor diffusion model recently proposed by the Danish Society of Actuaries. By use of a simulation study I compare the deterministic inflation scheme applied in the industry to a stochastic scheme and show that the real value of the pension saver’s investment portfolio at retirement is highly dependent on the inflation scheme. As the deterministic scheme does not take state variable correlations into account it overestimates the expected portfolio value in real terms compared to the stochastic scheme. Moreover, the deterministic scheme gives rise to a more heavy-tailed distribution implying a misestimation of downside risk and upside potential. Finally, it is shown in a realistic case study that the pension saver’s expected retirement payout profile is heavily affected.

What We Need to Know About Retirement: Pressing Issues for the Coming Decade.

The current landscape of retirement is changing dramatically as population aging becomes increasingly visible. This review of pressing retirement issues advocates research on (a) changing meanings of retirement, (b) impact of technology, (c) the role of housing in retirement, (d) human resource strategies, (e) adjustment to changing retirement policies, (f) the pension industry, and (g) the role of ethnic diversity in retirement.

Grouped multivariate and functional time series forecasting:An application to annuity pricing

Age-specific mortality rates are often disaggregated by different attributes, such as sex, state, ethnic group and socioeconomic status. In making social policies and pricing annuity at national and subnational levels, it is important not only to forecast mortality accurately, but also to ensure that forecasts at the subnational level add up to the forecasts at the national level. This motivates recent developments in grouped functional time series methods (Shang and Hyndman, in press) to reconcile age-specific mortality forecasts. We extend these grouped functional time series forecasting methods to multivariate time series, and apply them to produce point forecasts of mortality rates at older ages, from which fixed-term annuities for different ages and maturities can be priced. Using the regional age-specific mortality rates in Japan obtained from the Japanese Mortality Database, we investigate the one-step-ahead to 15-step-ahead point-forecast accuracy between the independent and grouped forecasting methods. The grouped forecasting methods are shown not only to be useful for reconciling forecasts of age-specific mortality rates at national and subnational levels, but they are also shown to allow improved forecast accuracy. The improved forecast accuracy of mortality rates is of great interest to the insurance and pension industries for estimating annuity prices, in particular at the level of population subgroups, defined by key factors such as sex, region, and socioeconomic grouping.

需求导向下的“医养结合”服务云平台建设研究—以成都市为例

随着我国老年人口的增多，人口老龄化问题的日益严重，养老问题受到社会各界广泛关注。然而我国的养老产业发展刚刚起步，尚未形成一个完整的养老服务体系，无法满足快速增长的养老需求。为解决这一问题，本文首先对成都市养老服务需求和产业现状进行了调研，分析梳理老人需求与养老服务相关行业及相关政府部门之间的关系机理，构建了“医养结合”的养老服务云平台，形成了一个完整的养老服务体系，以期对养老事业的发展起到一定助推作用。 With the increase of the elderly population, the problem of population aging is becoming more and more serious, and the issue of pension has begun to be concerned by the whole society. However, the development of China’s pension industry has just started and has not yet formed a complete pension service system, which resulted in the mismatching with the rapid growth of pension needs. In order to solve this problem, this paper analyzes the relationship between the needs of the elder, the related service sectors and relevant government departments, based on the investigation of the service demand and the current situation of the industry in Chengdu, constructing a “combination of medical treatment and health care” Pension service cloud platform, forming a complete pension service system, which contributes a certain economic value and social value.

Effects of Customer Value Co-Creation on Customer Loyalty in the Nigerian Service Industry

The purpose of this study is to ascertain the effects of customer value co-creation on customer loyalty in the service industry and IBTC pension was used to represent the service industry in Nigeria. Time has passed when firms act autonomously in designing products, developing products, creating marketing messages and so on with little or no interface from or interaction with customers. Now customers seek to exercise their influence in every part of the business system. This has led to the impending question, “can involving customers in the creation of service make them loyal”? The components of the <em>DART Model</em> (Dialogue, Access, Risk Assessment and Transparency) were applied to the Nigerian setting to determine customer loyalty in the pensions industry. The study adopted survey design method conducted among individual customers and staff of IBTC pension. Structured questionnaire was used to generate data for the study. Multiple Regression was used to test the hypotheses generated for the study.

Build Your Own Pension: Framing Pension Reform and Choice in Newspapers

ABSTRACTRecent pension reforms in Norway mean that old-age pensions to a greater extent are a function of adaptations made and decisions made throughout the lifetime. How much you work, who you work for, when you retire, and how you invest will influence your standard of living as an old-age pensioner. This article investigates one important source of information about retirement and pension, namely service journalism in main national newspapers. How is the issue of pension framed in these articles? And what kind of advice is presented by which kind of actors? Findings indicate that service journalism is dominated by pension industry sources, and old-age pension is framed as a function of individual investment choices rather than as citizens’ rights.

Rethinking the Paradox of Redistribution: How Private Insurance and Means Testing Can Lead to Universalizing Reform

Market-heavy welfare systems, in which low or moderate state benefits are topped up by private welfare arrangements, are expected to undermine political support for the extension of social rights and perpetuate benefit fragmentation over time. And where low state benefits are means-tested, political support is expected to be particularly prone to erosion. In this paper I develop the argument that the combination of private pension insurance and means-testing does not always perpetuate fragmentation. Rather, it structures the policy preferences of pension industry representatives and right-of-centre parties such that these actors push for reforms to make the state pension more universal. I make my argument by examining the reform history of nine market-heavy pension systems in the three decades since 1980. A fuzzy-set Qualitative Comparative Analysis (fsQCA) maps the conditions under which universalizing reforms have occurred, and two case studies link institutional conditions to reform outcomes via the policy preferences of key political actors.

An Overview of Derivative Pricing in Gaussian Affine Asset Pricing Models: An Application to the KNW Model

We present a comprehensive overview of derivative pricing in Gaussian affine asset pricing models. Gaussian affine asset pricing models are widely used in practice for pricing and scenario analysis due to their tractable pricing implications and easy estimation. This tractability is essential to efficiently evaluate portfolios of derivatives within many scenarios and time periods. We present efficient closed-form pricing formulas for the most common derivative instruments used by pension funds and insurance companies, such as interest rate swaps, swaptions, inflation-linked swaps, equity options, based on results from the literature. The pricing formulas are presented in a comprehensive computable form by utilising results based on the matrix exponential. Next, we show how some models commonly used in practice fit in the Gaussian affine framework, so that the pricing formulas can be applied to these cases. In particular, we discuss the KNW model by Koijen, Nijman and Werker (2010), which is widely used in the pension industry. Finally we discuss how our results can be applied to a time-inhomogeneous extension of the model that allows perfect calibration to the observed yield curve.

Evaluation of account number portability implementation in banking sector of Turkey

Is it possible to implement bank account number portability in banking industry just like telecommunication and pension system examples? In a mobile world where the customer behaviors and demands are changing rapidly, the idea of account number portability in banking industry, comparing with the aggressive competition in telco and pension industries, must be discussed as well. Account number portability in banking will have a huge impact on many business headlines. Risk management, money laundering, fraud, loans, cards, automated bill payments, deposit insurance, clearing and switching mechanism and its governance, competition law and capital accord should be examined. Within this conceptual and hypothetical study, the fundamental principles and requirements as well as countries case studies are highlighted and account number portability in Turkey is discussed. The basic and critical needs are proposed for account number portability in order to be a guideline for academic works and professional initiatives in the banking industry, in the future. Keywords: Bank account number portability, customer experience, bank account switching, mobile financial services, operational efficiency. JEL Classification: G20,G21,G23

Projections of the Impact of Pension Funds on Investment in Infrastructure and Growth in Latin America

This research study has various objectives. First, to highlight the importance of investment in infrastructure on economic growth. Second, to underscore the need for a competitive and transparent process to implement these investments, which must be aimed at efficiency and obtaining a proper balance between private and social benefits. Third, to identify the potential of pension funds as a flow of resources that can be channeled toward the development of infrastructure. And finally, to quantify the impact that the destination of these funds could have on the long-term growth projections of a country. To this end, we conducted an experiment to calculate per capita GDP growth in Latin America if the share of pension fund portfolios in assets related with direct infrastructure investment was increased. For this, we compared an inertial scenario (taking into account the current diversification of portfolios), versus one in which these were increased toward a higher level, in accordance with the regulatory framework of each country. These scenarios are incorporated in an expanded neoclassical growth model, in which GDP depends on the accumulation of traditional factors, plus the introduction of the infrastructure capital stock, which depends in part on the contributions of pension funds. The results of the model show substantial improvements in infrastructure investment and per capita GDP in Peru and Chile by more than 3% by 2050, and by 1.1% in the case of Mexico, and 2.16% in Colombia. The results of this study gives new light to the double importance that pension fund investment in infrastructure might have, generating a complementary relation between the objectives of the pension industry in providing workers with a profitable portfolio with limited risks, and at the same time generating an important contribution to growth in the country, which in the end would result in a greater development of pension funds, in brief, a virtuous circle that is necessary to strengthen.

Entrepreneurship is the Driving Force of the Pension Industry Development

In accordance with the standards of the world health organization, we have begun to enter elderly society, and the proportion of aging population will be rising in the future. Due to great changes have been taken place in population structure in recent years, the demand of endowment enterprises is increasing. To solve endowment problem, we can not simply rely on the government, we also need to inject some fresh blood to maintain its vitality. Now it is time for entrepreneurs who were the first rich people since the founding of new China to undertake the responsibility of the society. If they continue to play their best areas: innovation, planning, management, organization, coordination, and put the entrepreneurial spirit into endowment career, and what a piece of heaven and earth will be clearing out? In this article, we mainly analyse the subtle connection between the entrepreneurial spirit and endowment career, and try to find the balance point in them.In this way, we can promote the development of endowment career. Even we can reach the harmony between the entrepreneurial spirit and endowment career that is to say the Unity of spirit and matter.

The political economy of pensions

The paper assesses the success and challenges of pension industry in Nigeria, as a result of various reform that taken place. We find that the Pension Reform Act (PRA) 2004 make it possible for the industry to grow. However, the activities of the regulators of the industry are making it difficult for the pension industry to achieve is mandate. The empirical evidence shows that there is a positive relationship between contributory pension scheme (CPS) and gross domestic product (GDP). This result suggests that contributory pension scheme (CPS) have positive impact on the economy of Nigeria. Thirdly, we find that the respondents from stakeholders of the pension industry indicate that there is transparency and accountability in the financial reporting of the pension industry, operational and market risk affect pension fund management and return on pension fund. We recommend that the risk assessment should be improved upon in the area of pre-investment risk appraisal. This will help to guide against economic and political risks that are prevalent in an emerging economy of ours in Nigeria.