Distribution of risks in statutory employee pension schemes

The research project aims at analysing the distribution of risks that relate to employee pension insurance benefits and their funding, both in theoretical scheme types (public/private, statutory/voluntary, defined benefit/defined contribution, funded/pay-as-you-go) and in their different combinations as employed by a number of representative countries.

The project includes a quantitative analysis of risk distribution characteristics of the Finnish statutory employee pension insurance scheme. As a partly funded scheme it enables various ways of distributing the risks between generations. The analysis takes into account simultaneously investment risks and uncertainties that relate to population and productivity development.

In Finland the risks that relate to investment returns, demographics, employment and productivity have no effect on benefits but affect contributions. Risks that are related to changes in life expectancy fall mostly on benefits through the life expectancy coefficient and changes in the minimum old-age retirement age.

Starting year: 2016
Year of completion: 2018
Person in charge: Määttänen, Niku
Funding: Työeläkevakuuttajat TELA ry