An Optimal Planning of Public Pension Systems for Equity under Uncertainty

Abstract

The public pension system in Japan is bringing about intergenerational inequity in contribution / benefit ratio. In this paper, we propose a optimal planing of public pension systems under Generation-based Operation (GO) model and simulate a financial process in proposed method. Proposed method is robust for various disturbances. In society with a decreasing population, the robustness to changes in population is especially useful.