6533b86efe1ef96bd12cc746

RESEARCH PRODUCT

Models of the Actuarial Balance of the Pay-As-You-Go Pension System: A Review and Some Policy Recommendations

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This paper reviews the two main methods used by government Social Security departments to draw up the socalled actuarial balance of the p ayasyougo pension system, focusing especially on results, methodology and actuarial issues. The specific models studied are those in the United States, Japan and Sweden, and their main differences and similarities are highlighted. The authors make some specific policy recommendations that would be of interest to public finance economists, social security actuaries and policy makers, and they suggest that international organizations (ISSA, the World Bank, the OECD and others interested in public pension reform) could be supportive in developing and enforcing international accounting and actuarial valuation standards for payasyougo pension systems