%0 Journal Article
	%A Hasimah Sapiri and  Anton Abdulbasah Kamil and  Razman Mat Tahar and  Hanafi Tumin
	%D 2010
	%J International Journal of Humanities and Social Sciences
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 46, 2010
	%T Dynamics Simulation Approach in Analyzing Pension Expenditure
	%U https://publications.waset.org/pdf/5417
	%V 46
	%X Salary risk and demographic risk have been identified
as main risks in analyzing pension expenditure particularly in
Defined Benefit pension plan. Therefore, public pension plan in
Malaysia is studied to analyze pension expenditure due to salary and
demographic risk. Through the literature review and interview session
with several officers in public sector, factors affecting pension
expenditure are determined. Then, the inter-relationships between
these factors are analyzed through causal loop diagram. The System
Dynamics model is later developed using iThink software to show how
demographic and salary changes affect the pension expenditure. Then, by
using actual data, the impact of different policy scenarios on pension
expenditure is analyzed. It is shown that dynamics simulation model of
pension expenditure is useful to evaluate the impact of changes and
policy decisions on risk particularly involving demographic and salary risk.
	%P 2096 - 2102