Swiss pension funds: funding ratio, discount rate, and asset allocation

Autor:	Jorma J. Schäublin
Jazyk:	angličtina
Rok vydání:	2022
Předmět:	Pension funds Non-Bank Financial Institutions Funding ratio Statistics HA1-4737 Economics as a science HB71-74
Zdroj:	Swiss Journal of Economics and Statistics, Vol 158, Iss 1, Pp 1-23 (2022)
Druh dokumentu:	article
ISSN:	2235-6282
DOI:	10.1186/s41937-022-00092-6
Popis:	Abstract The funding ratio is a financial indicator to measure the viability of pension funds. The paper analyzes how Swiss occupational pension funds’ technical discount rate and asset allocation are related to the funding ratio. The paper shows that funds with weaker funding ratios apply higher rates to discount future pension liabilities what points toward euphemistic discounting. Further, weaker funded pension funds invest less in equities—with the exception of pension funds below the regulatory minimum threshold. The latter invest more in equities than funds above the threshold, which points to gambling for resurrection. The findings question the funding ratio as a transparent measure for pensions’ sustainability and unfold the regulatory environment’s disincentives.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/be88dff548f643d7a9de063848947f79 Zobrazit plný text záznamu View record in DOAJ Plný text ve formátu PDF Plný text ve formátu HTML
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