Intra-generational Redistribution under Public Pension Planning Based on Generation-based Funding Scheme

Abstract

In this paper, we propose a method of determining the pension in the generation-based funding scheme. In this proposal, we include two types of pensions in the scheme. One is the payment-amount related pension and the other is the payment-frequency related pension. We set the ratio of the total amount of payment-amount related pension to the total amount of both pensions, and simulate income gaps and the relationship between contributions and benefits for each individual when the proposed method is applied.