Template-type: ReDIF-Paper 1.0
Author-Name: Javier Pla-Porcel
Author-Workplace-Name: Actuarial Department, SOS Seguros y Reaseguros, S.A., Madrid. (Spain).
Author-Name: Manuel Ventura-Marco
Author-Workplace-Name: Department of Financial Economics and Actuarial Science, University of Valencia, Spain.
Author-Name: Carlos Vidal-Meliá
Author-Workplace-Name: Department of Financial Economics and Actuarial Science, University of Valencia, Spain, and Instituto Complutense de 
	Análisis Económico, Complutense University of Madrid, Spain.
Title: How do unisex life care annuities embedded in a pay-as-you-go retirement system affect gender redistribution?
Abstract: This paper aims to assess gender redistribution when using unisex conversion factors to compute the initial benefit of life care 
	annuities (LCAs) embedded in a pay-as-you-go (PAYG) pension system. We use a method based on actuarial factors to disentangle the 
	hidden redistribution of LCAs with graded benefits. The value of the actuarial factor relies on a multistate framework in which 
	transitions are modeled from the initial health state to the absorbing state. According to our calculations for Australia and the 
	US, the amount of gender redistribution is by no means irrelevant. In spite of the very different biometric data, the results are 
	surprisingly similar for both countries. Risk equalization based on the “equal treatment” of men and women may not be fair, given 
	that age, gender and health state are very significant risk factors in computing the initial benefit in a system covering 
	retirement and long-term care.
Classification-JEL: G22, H55, I13, J14, J26.
Keywords: Gender, Life Care Annuities, Long-Term Care Insurance, Multistate model, Redistribution, Retirement.
Length: 24 pages 
Creation-Date: 2017-02
Number: 2017-11
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae1711.txt
File-URL: https://eprints.ucm.es/id/eprint/41907/1/1711.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:1711