Academics have launched a consultation to establish the best way to model defined contribution schemes which could have "uncomfortable implications for plan members".
The consultation, run by the Pensions Institute, is based around 15 principles that the institute said comply with latest OECD and European Insurance and Occupational Pensions Authority guidance. The principles include using plausible, transparent and internally consistent assumptions, auditing and back-testing calibrations and using stochastic models to account for uncertainty. Click here to read the 15 principles in full. Pensions Institute director David Blake (pictured) said most DC schemes were currently "very badly designed", principally because they were not modelled to refl...
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