Description: Pension funds are usually either defined benefit or defined contribution funds. In Australia in recent years, for a number of reasons, some pension funds have offered the 'greater of,' these two benefits. Such a benefit design can be valued using contingent claims valuation techniques since it is equivalent to an option on the maximum of two random benefit amounts - one equal to a multiple of salary and the other the accumulation of a percentage of salary at an earnings rate. This paper overviews some of the issues in applying contingent claims valuation techniques to the valuation of this style of benefit. From Actuarial Research Clearing House 1993, Vol. 1.

Description: This paper evaluates a number of hybrid pension plans, including hybrid plans used to provide social security benefits in some countries. The paper provides an overview of types of hybrid plans provided around the world.

Description: A defined contribution plan with a defined benefit minimum guarantee is valued as a put option or exchange option. This paper compares the resulting price with the actual additional contribution rate used by one public sector plan, and considers extensions of the option theory to allow more accurately for the pension plan characteristics.

Description: This report presents the results of a survey conducted for the Society of Actuaries Pension Section Research Committee by Mathew Greenwald & Associates, Inc, March 2005. The purpose of the survey was to examine the prevalence of traditional and hybrid defined benefit pension plans in large organizations that have operations in the United States. The results of the study may prove useful to pension practitioners and policy makers wishing to gauge the effect of a recent US court ruling with potentially widespread implications for pension plans commonly referred to as cash balance plans.