Public Sector Pension Funds in Australia: Longevity Selection and Liabilities
AbstractThis paper assesses the cost and risk faced by public sector, defined benefit plan providers arising from uncertain mortality, including longevity selection, mortality improvements, and unexpected systematic shocks. Using longitudinal micro data on Australian pensioners, we quantify the extent of longevity selection at both aggregate and scheme level. We also show that as the age-membership structure in a pension scheme matures, scheme-specific longevity selection risk and systematic shocks become quantitatively more important and have larger consequences for plan liabilities than aggregate selection risk or the impact of mortality improvements.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales in its series Working Papers with number 201217.
Length: 44 pages
Date of creation: May 2012
Date of revision:
Contact details of provider:
Postal: Ground Floor, East Wing, UNSW Kensington Campus, Sydney NSW 2052
Phone: (+61)-2-9931 9202
Fax: (+61)-2 9385 6956
Web page: http://www.cepar.edu.au
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-AGE-2012-06-25 (Economics of Ageing)
- NEP-ALL-2012-06-25 (All new papers)
- NEP-LAB-2012-06-25 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pablo Antolin, 2007.
"Longevity Risk and Private Pensions,"
Financial Market Trends,
OECD Publishing, vol. 2007(1), pages 107-128.
- Pablo Antolín, 2007. "Longevity Risk and Private Pensions," OECD Working Papers on Insurance and Private Pensions 3, OECD Publishing.
- Beshears, John & Choi, James J. & Laibson, David & Madrian, Brigitte C., 2011.
"Behavioral Economics Perspectives on Public Sector Pension Plans,"
Working Paper Series
11-013, Harvard University, John F. Kennedy School of Government.
- Beshears, John & Choi, James J. & Laibson, David & Madrian, Brigitte C., 2011. "Behavioral economics perspectives on public sector pension plans," Journal of Pension Economics and Finance, Cambridge University Press, vol. 10(02), pages 315-336, April.
- Beshears, John & Choi, James J. & Laibson, David I. & Madrian, Brigitte, 2011. "Behavioral Economics Perspective on Public Sector Pension Plans," Scholarly Articles 9647369, Harvard Kennedy School of Government.
- John Beshears & James J. Choi & David Laibson & Brigitte C. Madrian, 2011. "Behavioral Economics Perspectives on Public Sector Pension Plans," NBER Working Papers 16728, National Bureau of Economic Research, Inc.
- Laibson, David I. & Madrian, Brigitte & Beshears, John & Choi, James J., 2011. "Behavioral Economics Perspectives on Public Sector Pension Plans," Scholarly Articles 4723207, Harvard Kennedy School of Government.
- Philip Clarke & Andrew Leigh, 2011. "Death, Dollars and Degrees: Socio‐economic Status and Longevity in Australia," Economic Papers, The Economic Society of Australia, vol. 30(3), pages 348-355, 09.
- Palacios, Robert & Whitehouse, Edward, 2006. "Civil-service pension schemes around the world," MPRA Paper 14796, University Library of Munich, Germany.
- Jeffrey R. Brown & Robert L. Clark, 2011.
"The Economics of State and Local Pensions,"
National Bureau of Economic Research, Inc, number brow11-1.
- Jeffrey R. Brown & Robert Clark & Joshua Rauh, 2011. "The Economics of State and Local Public Pensions," NBER Working Papers 16792, National Bureau of Economic Research, Inc.
- Dushi, Irena & Friedberg, Leora & Webb, Tony, 2010.
"The impact of aggregate mortality risk on defined benefit pension plans,"
Journal of Pension Economics and Finance,
Cambridge University Press, vol. 9(04), pages 481-503, October.
- Irena Dushi & Leora Friedberg & Anthony Webb, 2006. "The Impact of Aggregate Mortality Risk on Defined Benefit Pension Plans," Working Papers, Center for Retirement Research at Boston College wp2006-21, Center for Retirement Research, revised Nov 2006.
- Mario Cleves & William W. Gould & Roberto G. Gutierrez & Yulia Marchenko, 2010. "An Introduction to Survival Analysis Using Stata," Stata Press books, StataCorp LP, edition 3, number saus3, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elena Capatina).
If references are entirely missing, you can add them using this form.