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cc-by-nc-nd (c) Elsevier B.V., 2020
Si us plau utilitzeu sempre aquest identificador per citar o enllaçar aquest document: https://hdl.handle.net/2445/175039

Time consistent pension funding in a defined benefit pension plan with non-constant discounting

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We consider the time consistent management of a defined benefit stochastic pension plan where the participants have different rates of time preference and the fund manager collects this heterogeneity when discounting the future. The main objective is to select the amortization rate and the investment strategy minimizing both the contribution rate risk and the solvency risk. The problem is formulated as a stochastic control problem with non-constant rate of discount and is solved analytically by means of the dynamic programming approach and the technical interest rate is selected in order to keep stable the fund evolution within prescribed targets. A numerical illustration shows a comparative of the stability of the fund assets and the rate of contribution for a convex combination of exponential functions as discount function and for the constant discount case.

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JOSA-FOMBELLIDA, Ricardo, NAVAS, Jorge. Time consistent pension funding in a defined benefit pension plan with non-constant discounting. _Insurance Mathematics and Economics_. 2020. Vol. 94, núm. 142-153. [consulta: 24 de gener de 2026]. ISSN: 0167-6687. [Disponible a: https://hdl.handle.net/2445/175039]

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