Chapter 9 Reforming the German Civil Servant Pension Plan
Raimond Maurer, Olivia S. Mitchell, Ralph Rogalla
The Future of Public Employee Retirement Systems8/13/2009·DOI·Read paper
Abstract
<jats:title>Abstract</jats:title><jats:p>This chapter analyzes the risks and rewards of moving from an unfunded defined benefit pension system to a funded plan for civil servants in Germany, allowing for alternative portfolio mixes using a Monte Carlo framework and a Conditional Value at Risk metric. The authors identify an investment strategy for plan assets that will minimize worst-case pension costs; this turns out to be 22 percent in equities, 47 percent in bonds, and 31 percent in real estate. The authors show that moving toward a funded pension system for German civil servants can be beneficial to both taxpayers and civil servants.</jats:p>
Make this part of your paper trail
Save this paper to a shelf, write a review, and keep your own notes.