Richard Fullmer

Research conducted with the pensions regulator of Chile on tontine-like longevity risk pooling as a proposal for pension reform. Preprint version available at: https://ssrn.com/abstract_id=4045646

On longevity risk sharing as a tool for increasing the expected level of retirement income while simultaneously ensuring a defined contribution system's sustainability for current and future generations. (in Spanish, see authors or publisher for other translations).

Research conducted on behalf of the Central Bank of Uruguay on the subject of pension reform and the potential of introducing new forms of longevity risk sharing within the country

Co-author John A. Turner

Fullmer, R.K. and J.B. Forman (2022). ‘State-sponsored Pensions for Private Sector Workers: The Case for Pooled Annuities and Tontines.’ In O.S. Mitchell, ed., New Models for Managing Longevity Risk: Public-Private Partnerships. Oxford, UK: Oxford University Press, pp. 171-206. ISBN: 9780192859808

Pre-publication version: Wharton Pension Research Council Working Paper No. 2020-17 https://repository.upenn.edu/prc_papers/686/

Co-authors John A. Turner, Jonathan Barry Forman
David Pratt ed., LexisNexis Matthew Bender

An individual tontine account (ITA) is similar to a conventional investment brokerage account, but with the added feature of mortality pooling through participation in an open-ended fair tontine. In showing them to be fair to all participants, we envision ITAs as complementary to individual retirement accounts (IRAs), allowing retirees to derive extra income from savings without taking additional investment risk and to obtain lifetime income at a lower cost than with insurance products. ITAs… Show more

An individual tontine account (ITA) is similar to a conventional investment brokerage account, but with the added feature of mortality pooling through participation in an open-ended fair tontine. In showing them to be fair to all participants, we envision ITAs as complementary to individual retirement accounts (IRAs), allowing retirees to derive extra income from savings without taking additional investment risk and to obtain lifetime income at a lower cost than with insurance products. ITAs represent an efficient new solution in addressing retirement needs and may help address the “annuity puzzle” by providing a more transparent, lower-cost alternative to insurance-based products.

(pre-pub version also available at: https://ssrn.com/abstract=3217551) Show less

Pension reform study for the Colombian Ministry of Finance

Tontines offer a unique value proposition that represents a new, attractive alternative for the global retirement challenge. The study of fair tontine design is a specialty all its own—one that has emerged only recently.

Tontines are useful vehicles for providing retirement income. Their payouts, however, will necessarily vary as a function of investment returns and the mortality experience of the membership pool. Retirees who place a high value on income stability will desire to minimize the variability of these payouts. This can be accomplished via a large membership pool to minimize the effect of mortality experience volatility and by using immunizing cashflow matching techniques to minimize the effect of… Show more

Tontines are useful vehicles for providing retirement income. Their payouts, however, will necessarily vary as a function of investment returns and the mortality experience of the membership pool. Retirees who place a high value on income stability will desire to minimize the variability of these payouts. This can be accomplished via a large membership pool to minimize the effect of mortality experience volatility and by using immunizing cashflow matching techniques to minimize the effect of investment volatility. A structured bond ladder can achieve this quite effectively. Show less

I authored chapters 13-14 of this book by T. Noonan and M. Smith