Objectives

Introducing the main social security systems in the world, with their different kind of benefits and methods of financing. The accent will be given on the actuarial mathematics needed for these sytems.

Giving students the possibility of analysing and discussing these systems.

Contents

1) Introduction to social security systems

2) Actuarial mathematics of social security pensions – Defined benefit schemes: Presentation of financing methods (full funding, pay-as-you-go, mixed systems)

3) Actuarial analysis of defined benefit schemes

4) Actuarial mathematics of social security pensions – Defined contribution schemes

5) Projection techniques for actuarial valuation

6) Public pension schemes: old-age, survivor and disability benefits

7) Employment injury and occupational diseases schemes

8) Short-term cash benefits

In addition, a fictitious country with its own population and salary structures will be studied in class. Students will be asked to apply the actuarial techniques learnt in class to this country, which will help them to better understand the implications of each technique.

References

1) Subramaniam Iyer, 1999. Actuarial mathematics of social security pensions. Quantitative Methods in Social Protection Series. Geneva: International Social Security Association and International Labour Office

2) Plamondon, P.; Drounin, A.; Binet, G.; Cichon, M.; McGillivray, W.; Bédard, M., y Pérez-Mon-tas, H. 2002. Actuarial Practice in Social Security. Quantitative Methods in Social Protection Series. Geneva: International Social Security Association and International Labour Office.

Pre-requisites

None

Evaluation

First attempt

Exam:

Without exam (cf. terms)  

Evaluation:

SUMMER 2020, due to coronavirus

The evaluation will be done throughout the semester with exercise sets. There will be 5 exercise sets during the semester, the last 4 will be graded (thus, the first one is not part of the evaluation). Students will have to work in groups of 4 in order to solve the exercise sets. In addition, 2 quizzes will take place, one after the Easter break, the other one during the last week of the semester. The weights to compute the final grade are as follows:

Exercise set 2: 30%
Exercise set 3: 15%
Exercise set 4: 15%
Exercise set 5: 10%
Quizz: 15% each

During the semester, the students are given the possibility to do a 15 minutes presentation, in groups of 2 or 3 people, on one branch of social insurance of a chosen country. A project assessed as satisfactory gives 0.5 points bonus at the final grade.

Retake

Exam:

Oral 0h15 minutes

Documentation:

Allowed

Calculator:

Allowed

Evaluation:

Students will be requested to successfully pass an oral exam of 15 minutes.