Risk Sharing Mechanisms in PAYG Public Pension Schemes

Classical public pension schemes combine usually PAYG mechanism and Defined Benefit architecture. Aging threatens clearly this kind of structure and motivates the development of hybrid solutions mixing on one side PAYG and Fully funding and on the other side DB and DC (Defined Contribution). The purpose of this presentation is to develop some of these hybrid plans and introduce actuarial tools in order to implement inter-generational and intra generational fairness and sustainability in these public programs.