Comparison of the costs of the defined-benefit and the defined-contribution schemes under an actuarial methodology
Fuente:
Redalyc
Saved in:
| Main Author: | |
|---|---|
| Format: | Artículo científico |
| Language: | en |
| Published: |
Instituto Mexicano de Ejecutivos de Finanzas A.C.
2019
|
| Subjects: | |
| Online Access: | |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1876472540697722880 |
|---|---|
| author | Francisco Miguel Aguirre-Farías |
| author_facet | Francisco Miguel Aguirre-Farías |
| contents | Comparison of the costs of the defined-benefit and the defined-contribution schemes under an actuarial methodology Francisco Miguel Aguirre-Farías Francisco Miguel Aguirre-Villarreal José Daniel López-Barrientos Economía y Finanzas Defined defined benefit contribution subsidiarity The goal of this work is to use basic tools of actuarial analysis to prove for the first time thatthe cost of financing pure defined-benefit scheme is equal to that of a pure defined-contributionscheme whenever these plans grant equal benefits in terms of the amount and conditions toobtain them, and it is calculated using the same financial and biometric hypothesis.We state our results in terms of an individual computation and of a group model (for in thesecond case, the defined-benefit scheme requires the calculation of a general average premium);and in both scenarios, we study the possibility of an early retirement with full and partialportability.Our overall recommendation is to drop the discussion on which scheme is more expensive. Themain limitation of this research is also its greatest asset: we have proven that there is no do-minance of either plan over the other when there are no other labor market distortions; whichmeans that the discussion could be in order should we consider the presence of such disruptions. 2019 artículo científico 1665-5346 https://www.redalyc.org/articulo.oa?id=423765104002 10.21919/remef.v14i4.383 en http://www.redalyc.org/revista.oa?id=4237 Revista Mexicana de Economía y Finanzas. Nueva Época / Mexican Journal of Economics and Finance application/pdf Instituto Mexicano de Ejecutivos de Finanzas A.C. Revista Mexicana de Economía y Finanzas. Nueva Época / Mexican Journal of Economics and Finance (México) Num.4 Vol.14 |
| format | Artículo científico |
| id | redalyc_423765104002 |
| institution | Redalyc |
| language | en |
| publishDate | 2019 |
| publisher | Instituto Mexicano de Ejecutivos de Finanzas A.C. |
| spellingShingle | Comparison of the costs of the defined-benefit and the defined-contribution schemes under an actuarial methodology Francisco Miguel Aguirre-Farías Economía y Finanzas Defined defined benefit contribution subsidiarity Comparison of the costs of the defined-benefit and the defined-contribution schemes under an actuarial methodology Francisco Miguel Aguirre-Farías Francisco Miguel Aguirre-Villarreal José Daniel López-Barrientos Economía y Finanzas Defined defined benefit contribution subsidiarity The goal of this work is to use basic tools of actuarial analysis to prove for the first time thatthe cost of financing pure defined-benefit scheme is equal to that of a pure defined-contributionscheme whenever these plans grant equal benefits in terms of the amount and conditions toobtain them, and it is calculated using the same financial and biometric hypothesis.We state our results in terms of an individual computation and of a group model (for in thesecond case, the defined-benefit scheme requires the calculation of a general average premium);and in both scenarios, we study the possibility of an early retirement with full and partialportability.Our overall recommendation is to drop the discussion on which scheme is more expensive. Themain limitation of this research is also its greatest asset: we have proven that there is no do-minance of either plan over the other when there are no other labor market distortions; whichmeans that the discussion could be in order should we consider the presence of such disruptions. 2019 artículo científico 1665-5346 https://www.redalyc.org/articulo.oa?id=423765104002 10.21919/remef.v14i4.383 en http://www.redalyc.org/revista.oa?id=4237 Revista Mexicana de Economía y Finanzas. Nueva Época / Mexican Journal of Economics and Finance application/pdf Instituto Mexicano de Ejecutivos de Finanzas A.C. Revista Mexicana de Economía y Finanzas. Nueva Época / Mexican Journal of Economics and Finance (México) Num.4 Vol.14 |
| title | Comparison of the costs of the defined-benefit and the defined-contribution schemes under an actuarial methodology |
| topic | Economía y Finanzas Defined defined benefit contribution subsidiarity |
| url | https://www.redalyc.org/articulo.oa?id=423765104002 |