ABSTRACT
This chapter examines how uncertainty regarding future mortality and life expectancy outcomes, i.e., longevity risk, a ects employerprovided de ned bene t (DB) private pension plan liabilities. e chapter argues that to assess uncertainty and associated risks adequately,
a stochastic approach to model mortality and life expectancy is preferable because it permits to attach probabilities to di erent forecasts. In this regard, the chapter provides the results of estimating the Lee-Carter model for several OECD countries. Furthermore, it conveys the uncertainty surrounding future mortality and life expectancy outcomes by means of Monte-Carlo simulations of the Lee-Carter model.
