Main themes

This course aims to familiarise students with the main principles that underpin public and private provident fund schemes (mainly social security and pension funds).
The subject will be examined in legal and social terms, and then from the standpoint of an actuarial technique; there will be a special focus on studying inter-generational models, and on actuarial calculations in group insurance and pension funds.

Content and teaching methods

- A definition of provident funds/macroeconomic importance.
- A description of social security.
- The actuarial theory of provident funds (lexis diagram/Kaan equations); the construction of an inter-generational model: funded and pay-as-you-go schemes, open/closed groups, and the respective incidence of interest rates and the rate of change of the population.
- Paradox.

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