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Projecting Tanzania...
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John Mwakisisile, AndongwisyeDepartment of Mathematics, University of Dar es Salaam, Dar es Salaam, Tanzania
(author)
Projecting Tanzania Pension Fund System
- Article/chapterEnglish2017
Publisher, publication year, extent ...
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2017-01-01
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Afrika Statistika - SPAS,2017
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printrdacarrier
Numbers
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LIBRIS-ID:oai:DiVA.org:liu-143272
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https://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-143272URI
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https://doi.org/10.16929/ajas/2017.193.210DOI
Supplementary language notes
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Language:English
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Summary in:English
Part of subdatabase
Classification
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Subject category:ref swepub-contenttype
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Subject category:art swepub-publicationtype
Notes
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A mandatory Tanzania pension fund with a final salary defined benefit is an- alyzed. This fund is a contributory pay-as-you-go defined benefit pension system which is much affected by the change in demography. Two kinds of pension benefit, a commuted (at retirement) and a monthly (old age) pension are considered. A decisive factor in the anal- ysis is the increased life expectancy of members of the fund. The projection of the fund’s future members and retirees is done using expected mortality rates of working population and expected longevity. The future contributions, benefits, asset values and liabilities are analyzed. The projection shows that the fund will not be fully sustainable on a long term due to the increase in life expectancy of its members. The contributions will not cover the benefit payouts and the asset value will not fully cover liabilities. Evaluation of some possi- ble reforms of the fund shows that they cannot guarantee a long-term sustainability. Higher returns on asset value will improve the funding ratio, but contributions are still insufficient to cover benefit payouts.
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A mandatory Tanzania pension fund with a final salary defined benefit is analyzed. This fund is a contributory pay-as-you-go defined benefit pension system which is much affected by the change in demography. Two kinds of pension benefit, a commuted (at retirement) and a monthly (old age) pension are considered. A decisive factor in the analysis is the increased life expectancy of members of the fund. The projection of the fund’s future members and retirees is done using expected mortality rates of working population and expected longevity. The future contributions, benefits, asset values and liabilities are analyzed. The projection shows that the fund will not be fully sustainable on a long term due to the increase in life expectancy of its members. The contributions will not cover the benefit payouts and the asset value will not fully cover liabilities. Evaluation of some possible reforms of the fund shows that they cannot guarantee a long-term sustainability. Higher returns on asset value will improve the funding ratio, but contributions are still insufficient to cover benefit payouts.
Subject headings and genre
Added entries (persons, corporate bodies, meetings, titles ...)
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Larsson, Torbjörn,1957-Linköpings universitet,Optimeringslära,Tekniska fakulteten(Swepub:liu)torla64
(author)
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Singull, Martin,1977-Linköpings universitet,Matematisk statistik,Tekniska fakulteten(Swepub:liu)maroh70
(author)
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Mushi, AllenDepartment of Mathematics, University of Dar es Salaam, Dar es Salaam, Tanzania
(author)
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Department of Mathematics, University of Dar es Salaam, Dar es Salaam, TanzaniaOptimeringslära
(creator_code:org_t)
Related titles
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In:African Journal of Applied Statistics: Afrika Statistika - SPAS4:1, s. 193-2182316-0861
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