Developed countries apply different security mechanisms in regulation to protect defined pension benefits: solvency requirements, a pension guarantee fund, and sponsor support. We test the performance of these mechanisms in terms of the protection offered to pension benefits in relation to the...

Developed countries apply different security mechanisms in regulation to protect pension benefits: solvency requirements, a pension guarantee fund, and sponsor support. We compare these mechanisms for a generalized form of hybrid pension schemes. We calculate the expected log return for the...

Defined benefit pension plans provide their beneficiaries with a prespecified retirement income related to years of service and wage. However, as pension contracts are not entirely legally enforceable, such payments of defined benefit pension plans are not completely irreversible. The pension...