22nd Feb​ 2017 - Seminar: A Proposal for Redesigning Social Security: Long-Term Care Pension by Dr Shuji Tanaka, Nihon University

Published on: 06-Feb-2017

​Event Date & Time: 22-Feb-2017 1030hrs - 1115hrs

Venue: Meeting Room 2 (S3-01a-37) Nanyang Business School

​Abstract

I propose to replace the automatic adjustment system of pension benefits, embedded in the 2004 reform of the Japanese public pension scheme, with one providing for specific required care levels and thus assure the logical financial adjustment of long-term care insurance and public pensions. For this purpose, I introduce a multi-state Markov chain model and estimate the transition matrix combining the existent local experience data and nationwide public data. The following policy effect will be anticipated. If an LTCI beneficiary falls into a certain required care status, his or her required care benefit will need to be upgraded and the individual expense burden will increase. A similar approach is proposed by annuity products in the private sector such as the QLAC (qualified longevity annuity contract) in the U.S. and “life care pensions” in Britain.

About the speaker

Dr. Shuji Tanaka, Professor of Mathematics at Nihon University, is a director of the Board in the Institute of Actuaries of Japan (IAJ) and has served as the chairman of Papers Committee for almost 20 years, where he has played a pivotal role of research activities in the IAJ. Dr. Tanaka also served as the president of academic association, JARIP (Japanese Association of Risk, Insurance and Pensions) during 2009-2012. His research interest includes individual insurance pricing, valuation of corporate pension practices, and investment planning. He teaches mainly actuarial practices in insurance industry, and study enterprise risk management. He received both BA and Ph.D in Mathematics from Tokyo University and worked for Nippon Life Insurance and NLI Research Institute where he focused in financial engineering research for 15 years.