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Showing 4 results for Pension Fund

Mr Majid Dashtban Faroji, Dr Saeed Samadi , Dr Rahim Dallali Isfahani, Dr Majid Fakhar, Dr Mahanosh Abdollahe Milani,
Volume 1, Issue 2 (12-2010)
Abstract

The ability of OLG models in analyzing and simulating the various fields of an economy, such as the investigation of endogenous growth policies, the development of intergenerational equity criteria and the reform of social security system, has caused these models to have a special position among economists in recent decades. However, difficulties in quantifying these models and analyzing their stability properties have led them to remain only theoretical and receiving less attention from empirical viewpoints. This paper uses the proposed method by Auerbach and Kotlikoff to estimate a 55-period overlapping generations model. Then due to failures of the Iran’s Pension System, it analyses and simulates Pension System within overlapping generation’s model with heterogeneous agents living in 55 periods. Thus we study the effects of transition from the Pay-As-You-Go Pension to the Fully Funded Pension System in the process of capital accumulation, national production and national consumption. The findings indicate that the individual optimal consumption-saving behavior varies under different social security systems. The results of the simulation model show that in addition to increasing the personal financial assets, Fully Funded Pension System provides a higher physical capital accumulation for the economy than that of ‌Pay-as-you-go Pension System. In addition to higher levels of national consumption and production, the transition to the new system causes people to have more incentive to stay in the labor market and to complete their career because they have higher labor income than the old pension system.
Hamidreza Izadbakhsh, Ahmad Soleymanzadeh, Hamed Davari Ardakani, Marzieh Zarinbal,
Volume 8, Issue 29 (10-2017)
Abstract

Since pension funds are among the most important and effective organizations in economic and social environments, it is critical to study their problems ahead. Asset and liability management (ALM) is a useful tool to study pension funds and their stakeholders. This paper tries to understand the key factors effecting on ALM and to analyze them using system dynamics. Fuzzy inference engine is also used to quantify the important risks in ALM. Results show that considering ALM and stakeholders’ benefits as whole and paying attention to risk factors such as changing population are the key factors for successful ALM.

Hoda Zobeiri, Mani Motameni,
Volume 11, Issue 40 (6-2020)
Abstract

Due to pension fund problems in Iran, the multi-pillar social insurance system has been released in 2017. According to this, the first pillar is regarding to low income groups and finance through the public fund. The second pillar is defined benefit and finance pay as you go. The third pillar is defined contribution and fully funded finance. Contributions are transferred to the individual account. The pension fund directors supposed to investments the accounts and to return the Contribution fund and its returns in retirement time. The main issue is that the old age pensions are not guaranteed in this plan and face with financial risk and inflation. Due to high inflation of Iran’s economy, the main challenge of third pillar plan is the inflation. This paper is main to inflation hedging in defined contribution pension plan by Investing in Tehran Stock-Exchange. By using NARDL model and 133 monthly data up to 2020 the results show that TSE index can hedge the inflation.

Abbas Khandan,
Volume 12, Issue 46 (12-2021)
Abstract

Collective pension funds have many advantages including larger risk pool and the possibility of interpersonal and intergenerational risk sharing, as well as economies of scale and lower administrative costs. For decades, however, this has been achieved through mandatory participation, while this traditional and mandatory form of contribution is no longer commensurate with the future of work. In this regard, many countries have implemented a combinatorial policy in the form of auto-enrolment pensions and then the granting of opting out authority. However, the sustainability of these schemes will depend on people's motivation to participate or leave. This article tries to examine the motivations of individuals to exit the Iran Social Security Organization (ISSO) pension fund, assuming that the insureds are given the opportunity to opt out once in a certain time. For this purpose, the method of option pricing is used. Findings show that insureds will accept even a 60 percent deficit in fund’s long-term liabilities for the only reason to take advantage of investment income of their predecessors funds or interpersonal and intergenerational risk sharing. It was also observed that an increase in the funding ratio, lower liabilities, a rise in assets and a higher rate of return on investments encourage participation and reduce the incentive to exit. A decline in accrual rate, increase in the contribution rate, higher retirement age, accelerating the adjustment rate of fund deficit due to their detrimental effect on the insureds have a direct negative effect on the incentive to participate and stimulate withdrawal. It should be noted, however, that these factors will also reduce liabilities and increase the funding ratio, thereby contributing to the sustainability of the plan may ultimately reduce the exit incentives.


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