- The document discusses a model of an overlapping generations economy with heterogeneous cohorts and pension systems. It examines the distributional effects of pension reform from defined benefit to defined contribution and the effectiveness of policy instruments. - The model finds that such a pension reform and demographic transition increase both wealth and consumption inequalities. Minimum pensions are shown to reduce inequality from the reform by 40-50% by affecting endowments, but not preferences. Contribution caps have an unnoticeable effect.