Optimal Strategies for Long-Term Sustainability in PAYGO Pension Systems using Control Theory in a Dynamic Nonlinear Framework

Humberto Godínez-Olivares; María Del Carmen Boado-Penas; Athanasios A. Pantelous

doi:10.1061/9780784413609.122

Optimal Strategies for Long-Term Sustainability in PAYGO Pension Systems using Control Theory in a Dynamic Nonlinear Framework

Humberto Godínez-Olivares, María Del Carmen Boado-Penas, Athanasios A. Pantelous

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Abstract

The aim of this paper is to design an automatic balancing mechanism based on minimizing changes in the main variables that play a part in a Pay-As-You-Go (PAYGO) pension system (contribution rate, normal retirement age and indexation of pensions) using nonlinear programming. This mechanism identifies and applies an optimal path of these variables to a PAYGO system and absorbs fluctuations in longevity, fertility rates, life expectancy, salary growth or any other random events in a pension plan.

Original language	English
Title of host publication	Vulnerability, Uncertainty, and Risk
Subtitle of host publication	Quantification, Mitigation, and Management
Editors	Michael Beer, Siu-Kui Au, Jim W. Hall
Publisher	American Society of Civil Engineers
Pages	1214-1223
Number of pages	10
ISBN (Print)	9780784413609
DOIs	https://doi.org/10.1061/9780784413609.122
Publication status	Published - 7 Jul 2014
Event	2nd International Conference on Vulnerability and Risk Analysis and Management and 6th International Symposium on Uncertainty Modeling and Analysis 2014 - Liverpool, United Kingdom Duration: 13 Jul 2014 → 16 Jul 2014

Conference

Conference	2nd International Conference on Vulnerability and Risk Analysis and Management and 6th International Symposium on Uncertainty Modeling and Analysis 2014
Abbreviated title	ICVRAM 2014&ISUMA 2014
Country/Territory	United Kingdom
City	Liverpool
Period	13/07/14 → 16/07/14

ASJC Scopus subject areas

Safety, Risk, Reliability and Quality

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1061/9780784413609.122

Cite this

Godínez-Olivares, H., Del Carmen Boado-Penas, M., & Pantelous, A. A. (2014). Optimal Strategies for Long-Term Sustainability in PAYGO Pension Systems using Control Theory in a Dynamic Nonlinear Framework. In M. Beer, S.-K. Au, & J. W. Hall (Eds.), Vulnerability, Uncertainty, and Risk: Quantification, Mitigation, and Management (pp. 1214-1223). American Society of Civil Engineers. https://doi.org/10.1061/9780784413609.122

Godínez-Olivares, Humberto ; Del Carmen Boado-Penas, María ; Pantelous, Athanasios A. / Optimal Strategies for Long-Term Sustainability in PAYGO Pension Systems using Control Theory in a Dynamic Nonlinear Framework. Vulnerability, Uncertainty, and Risk: Quantification, Mitigation, and Management. editor / Michael Beer ; Siu-Kui Au ; Jim W. Hall. American Society of Civil Engineers, 2014. pp. 1214-1223

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abstract = "The aim of this paper is to design an automatic balancing mechanism based on minimizing changes in the main variables that play a part in a Pay-As-You-Go (PAYGO) pension system (contribution rate, normal retirement age and indexation of pensions) using nonlinear programming. This mechanism identifies and applies an optimal path of these variables to a PAYGO system and absorbs fluctuations in longevity, fertility rates, life expectancy, salary growth or any other random events in a pension plan.",

author = "Humberto God{\'i}nez-Olivares and {Del Carmen Boado-Penas}, Mar{\'i}a and Pantelous, {Athanasios A.}",

note = "Publisher Copyright: {\textcopyright} 2014 American Society of Civil Engineers.; 2nd International Conference on Vulnerability and Risk Analysis and Management and 6th International Symposium on Uncertainty Modeling and Analysis 2014, ICVRAM 2014&ISUMA 2014 ; Conference date: 13-07-2014 Through 16-07-2014",

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Godínez-Olivares, H, Del Carmen Boado-Penas, M & Pantelous, AA 2014, Optimal Strategies for Long-Term Sustainability in PAYGO Pension Systems using Control Theory in a Dynamic Nonlinear Framework. in M Beer, S-K Au & JW Hall (eds), Vulnerability, Uncertainty, and Risk: Quantification, Mitigation, and Management. American Society of Civil Engineers, pp. 1214-1223, 2nd International Conference on Vulnerability and Risk Analysis and Management and 6th International Symposium on Uncertainty Modeling and Analysis 2014, Liverpool, United Kingdom, 13/07/14. https://doi.org/10.1061/9780784413609.122

Optimal Strategies for Long-Term Sustainability in PAYGO Pension Systems using Control Theory in a Dynamic Nonlinear Framework. / Godínez-Olivares, Humberto; Del Carmen Boado-Penas, María; Pantelous, Athanasios A.
Vulnerability, Uncertainty, and Risk: Quantification, Mitigation, and Management. ed. / Michael Beer; Siu-Kui Au; Jim W. Hall. American Society of Civil Engineers, 2014. p. 1214-1223.

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

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AB - The aim of this paper is to design an automatic balancing mechanism based on minimizing changes in the main variables that play a part in a Pay-As-You-Go (PAYGO) pension system (contribution rate, normal retirement age and indexation of pensions) using nonlinear programming. This mechanism identifies and applies an optimal path of these variables to a PAYGO system and absorbs fluctuations in longevity, fertility rates, life expectancy, salary growth or any other random events in a pension plan.

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Godínez-Olivares H, Del Carmen Boado-Penas M, Pantelous AA. Optimal Strategies for Long-Term Sustainability in PAYGO Pension Systems using Control Theory in a Dynamic Nonlinear Framework. In Beer M, Au SK, Hall JW, editors, Vulnerability, Uncertainty, and Risk: Quantification, Mitigation, and Management. American Society of Civil Engineers. 2014. p. 1214-1223 doi: 10.1061/9780784413609.122

Optimal Strategies for Long-Term Sustainability in PAYGO Pension Systems using Control Theory in a Dynamic Nonlinear Framework

Abstract

Conference

ASJC Scopus subject areas

UN SDGs

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