Mechanisms of compensation for possible losses to pension assets under management: A two-tier insurance-system model

A model scheme of relationships between the participants of Russia’s Pension System, which was proposed to guarantee the security and break-even point for the population’s pension assets under management, is described in the paper and its main indicators are calculated (absolute indicators for the insurance system, the number of insured events, the average value of the indemnified loss, the system for insurance tariff differentiation, etc.). The empirical base was provided by the data of management company portfolios for the 2008–2011 period. Examples of the performance of the proposed scheme are shown through modeling and comparing the accumulation and payout of an employee’s pension assets under both an insurance-coverage and a noninsurance scenario.