Premium Valuation of the Pension Benefit Guaranty Corporation with Regime Switching

<div>The impact of <svg height="11.927pt" id="M180" style="vertical-align:-3.291101pt" version="1.1" viewbox="-0.0498162 -8.6359 14.1841 11.927" width="14.1841pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M578 512C578 619 494 650 387 650H140L134 622C219 615 223 609 210 542L127 119C112 40 104 34 23 28L17 0H235C317 0 387 7 444 33C515 65 564 122 564 195C564 289 495 335 412 352V354C505 373 578 422 578 512ZM486 510C486 422 423 367 314 367H257L294 565C299 591 305 602 315 608C324 614 339 617 362 617C421 617 486 595 486 510ZM466 200C466 100 393 35 296 35C222 35 198 51 212 127L250 333H303C388 333 466 303 466 200Z"></path></g><g transform="matrix(.0091,0,0,-0.0091,7.748,3.132)"><path d="M636 22C611 29 589 38 560 74C536 104 518 134 495 173L430 300C518 328 592 392 592 492C592 555 563 594 528 618C491 643 435 650 377 650H140L131 618C222 610 223 601 208 518L137 136C121 43 116 40 27 32L18 0H295L300 32C212 40 206 42 223 138L248 279H296C334 279 350 272 369 230C393 174 413 140 441 94C482 24 523 1 626 -8L636 22ZM497 480C497 422 468 374 417 343C387 324 353 315 304 315H255L298 556C303 583 309 598 319 603C331 610 348 613 367 613C448 613 497 573 497 480Z"></path></g></svg> on the premium with premature termination of pension fund.</div>

Mathematical Problems in Engineering

fig1

Figure 1

Figure 1: Premium Valuation of the Pension Benefit Guaranty Corporation with Regime Switching 