@article {Chen:10 April 2006:0003-6846:699,
	author = "Chen, Chao-Liang",
	title = "The portable guarantee to exchange back an old defined benefit for a new defined contribution (DC) pension plan",
	journal = "Applied Economics",
	volume = "38",
	year = "10 April 2006",
	abstract = "As a defined contribution (DC) pension plan is introduced to replace a defined benefit (DB) pension plan, the portability benefit from a DC pension plan costs the employees to bear the investment risk from managing the pension fund. To protect the retirement income and maintain the portability benefit, a guarantee to exchange back the old defined benefit is supposed to be demanded for the new DC plan's participants in the guarantee market. In light of such a demand, this article applies a claim-terminating insurance pricing model to offer a contingent claims pricing model for a portable pension guarantee. Using the new labor pension plan of Taiwan as an illustration, a guaranteed DC pension will carry an extra cost of almost 50% up to over 100% of the plan's contributions over the participant's work life, given the current mandatory minimum requirement of a contribution rate of 6%.",
	pages = "699-706(8)",
	url = "http://www.ingentaconnect.com/content/routledg/raef/2006/00000038/00000006/art00009"
	doi = "doi:10.1080/00036840500397127"
}