Determination of Contribution Rates in the Retirement System of an Institution of Higher Education Through an Optimization Model Chapter in Scopus uri icon

abstract

  • © 2021, Springer Nature Switzerland AG.Retirement and pension systems in the world have undergone important changes due to governmental impositions in several aspects. In this research, we develop a linear optimization model to determine the optimal contribution percentages in a retirement system designed to support high education institution teachers. The parameters considered by the model, which is developed in the LINGO language, are the interest rate generated by the investment, the inflation rate, the total number of years a worker saved, the years in which coverage is desired, and the salary of the workers. The results show the optimal investment percentages concerning the worker salary, assuming that coverage is desired for a certain number of years in the future and the total amount saved for some time. At the end we show a sensitivity analysis making the mentioned parameters take values in certain reasonable ranges.

publication date

  • January 1, 2021