Structural Reforms for Public Pension Schemes

Event Type
Web Session
European Actuarial Academy

Wednesday 21st April and Wednesday 5th May 2021

Start time: 8.00 am

End time: 10.00 am


Announcements from the European Actuarial Academy organiser: Traditionally, public pension schemes managed by social security organizations are financed by a payg (pay as you go) mechanism and use a Defined Benefit logic. This double characteristic (PAYG + DB) has been massively challenged these last decades in the well-known context of ageing. The demographic evolution will impact directly the payg scheme and the DB nature, protecting by definition the benefits, generates an unavoidable increasing of the contributions. In order to address this financial threat, different countries have introduced or proposed various strategies of reforms, including structural reforms. Among the main alternatives to classical schemes, we can think of the NDC system (Notional Defined Contribution), the point system or individual saving accounts. The introduction of these new mechanisms has been mainly motivated by financial sustainability arguments. But other constraints or goals of a public system must not be forgotten. In particular, the following issues motivate deep actuarial analysis:

  • Equilibrium between financial sustainability and social adequacy;
  • Intergenerational risk sharing;
  • Actuarial neutrality in case of early retirement;
  • Longevity heterogeneity driven by socio economic conditions. 

The web session is open to all interested persons, especially for pension actuaries and everybody motivated by the future of our pension systems.

Technical requirements: Please check with your IT department if your firewall and computer settings support online participations (the programme GotoTraining is used for the web session).

The objective of this web session (which consists of 2 parts) is to present various experiences of structural reforms of public pension schemes such as NDC (notional account) or point systems and to analyze these techniques in terms of fair equilibrium between financial sustainability and social adequacy. This analysis will motivate to introduce intermediate approaches between classical DB plans and NDC notional accounts, using inter-generational risk sharing of the aging cost and automatic adjustment mechanisms. The influence of longevity spreads between different socio economic groups will also be addressed in terms of intra generational fairness as well as the actuarial neutrality in case of flexible retirement age.

Click here to make a reservation. Your early-bird registration fee is € 200.00 plus 19% VAT for bookings by 10 March 2021. After this date, the fee will be € 270.00 plus 19% VAT.


Wednesday, 21st April:

  • Challenges of classical public pension schemes
  • The NDC solution
  • Points systems
  • Fully funded individual accounts
  • Pension account in PAYG

Wednesday, 5th May:

  • Hybrid pension schemes DB / DC
  • Intergenerational risk sharing
  • Flexibility of retirement age and actuarial neutrality
  • Longevity heterogeneities
Pierre Devolder
Biographical details

Pierre Devolder
Pierre DEVOLDER is professor of mathematical finance and actuarial science at the Catholic University of Louvain (UCL) (Institute of Statistics, Biostatistics and Actuarial Science, ISBA/LIDAM, Belgium).  He has a PhD in mathematics from the University of Brussels. He is also actuary and academic member of the Belgian Institute of actuaries (IABE). His main research activities are focused on stochastic finance, life insurance and pension theory. He has published 6 books on pension and finance and a lot of papers in various actuarial journals. He gives regular courses at the universities of Brussels, Strasbourg, Rabat and EM Lyon.  He is member of the Belgian “Conseil Académique des Pensions” and chairman of the board of REACFIN (actuarial consulting).