Pension fund risk management [31]

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Bullet points include: If present then these add a further overlay to earlier security mechanisms. Are usually country (e.g. EU member state) wide. How they operate and are set up varies by country, see e.g. Clarke (2012) or overleaf Can be modelled by an approach similar to the one described above for sponsor covenants (with conditional benefits if relevant) Except that the ‘default’ process is now a two stage process Sponsor defaults: benefits potentially depleted on transfer to protection arrangement At a later time PPS defaults: benefits potentially further depleted Also involve premium transfers through time from scheme / sponsor to PPS possibly depleting future scheme/sponsor resources

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