Hedge Funds

An optimal framework for pension plans

The general framework for occupational pension plans can be described as intra- and intergenerational hybrid pension plans, with risk-sharing mechanisms between members and with sponsors. We define the degree of hybridity of a pension plan as the extent of risk sharing with the sponsor. At one end of the spectrum lie traditional defined-benefit (DB) funds, […]
Hedge Funds

Flexible framework needed for pension plans

The general framework for occupational pension plans can be described as intra and inter-generational hybrid, with risk-sharing mechanisms between members and with sponsors. The degree of hybridity of a pension plan can be defined as the extent of risk sharing with the sponsor. At one end of the spectrum lie traditional defined-benefit (DB) funds, where […]