Search results for "Pension system"
showing 10 items of 39 documents
The financial impact of Spanish pension reform: A quick estimate
2012
In this paper, we present a preliminary estimate of the financial impact of the recent reform of the Spanish pension system. After updating the projections of pension expenditure constructed in de la Fuente and Doménech (2010) for the period 2008-2060, we analyze the impact on this variable of raising the retirement age from 65 to 67 years, extending from 15 to 25 years the period over which wages are averaged to calculate the starting pension and increasing from 35 to 37 the number of contribution years required to obtain a 'full pension.' Conditional on a series of assumptions about the evolution of employment, productivity and demographics, our estimates suggest that these measures will …
New Challenges of Economic and Business Development – 2012 : Conference Proceedings (May 10 - 12, 2012, Riga, University of Latvia)
2012
Support for Conference Proceedings by ERAF Project "Support for the international cooperation projects and other international cooperation activities in research and technology at the University of Latvia" No. 2010/0202/2DP/2.1.1.2.0/10/APIA/VIAA/013
CRITERIA FOR SUSTAINABILITY OF OLD-AGE PENSION SYSTEM BASED ON THE NDC PRINCIPLES
2015
The topicality of the research subject. The foundations of the old-age pension scheme based on notional accounts, also referred to as the “notional defined contribution” or “non-financial defined contribution” (NDC) old-age pension scheme, were laid in Sweden in 1994, when the prevailing view was that a sustainable defined-contribution PAYG old-age pension scheme is impossible. Since then, the NDC system modifications have been implemented in several countries; since 2000, this scheme is also part of the Latvian pension system and works significantly better than the other part of the pension system - the funded pension scheme. However, the sustainability of NDC scheme is still being questio…
Individual information for pension contributors: Recommendations for Spain based on international experience
2012
The aim of this article is to establish basic guidelines to support the possible design of an information letter to be sent to individuals who contribute to the Spanish state pension system, should a decision ever be taken to adopt such an instrument. Basing our work on international experience and published research in the field, we look into the concept of “individual pension information” and identify its most relevant features. We then give detailed descriptions of two models for the provision of individual pension information (the United States and Sweden), looking in particular at how these are structured, what aspects could be improved and their limitations. Finally, we offer recommen…
Equity of Public Pension System
2020
Fairness is an important feature of pension systems, but it is a wide concept with multiple sides. In this chapter, we try to distinguish some of them with the aim of using the terms in a proper manner. More specifically, we have observed at least five meanings for the notion of fairness when applying to a pension system: justice, equity, neutrality, solidarity and integrity. We explain each sense of fairness and other related concepts. We also provide, when possible, a way to measure each of them, with some figures for a selected European countries.
Adjustment mechanisms and intergenerational actuarial neutrality in pension reforms
2016
In the context of the reform of defined benefit pension systems under population ageing, we focus on the introduction of automatic adjustment mechanisms linked to life expectancy. Our goal is to establish a relationship between changes in the key parameters of the pension system and changes in life expectancy, applying the principle of intergenerational actuarial neutrality. For a defined benefit pension scheme, we first obtain the fundamental adjustment equation and then, for particular cases, we derive different designs of automatic adjustment mechanisms depending on the involved parameter. We include a numerical application only for illustrative purposes.
Influence of pillar 3 of pension system on retirement pensions level in Poland : will voluntary part of system enable decent life in old age?
2021
PURPOSE: The aim of this paper is the comparative analysis of the general saving ways included in pillar 3 of the pension system and showing their potential effectiveness from the perspective of the pension system participant. Will the resources allocated by the instruments of the voluntary pension system part significantly improve the level of the future pension? Will they allow a more decent life for an average Polish citizen in the period of the old age?
Does the Pension System’s Income Statement Really Matter? A Proposal for An NDC Scheme with Disability and Minimum Pension Benefits
2019
This paper develops a full accounting model for monitoring the solvency of a notional defined contribution (NDC) pension scheme with disability and minimum pension benefits. Using the annual report of the Swedish pension system as a benchmark (TSPS, 2019), we extend the “Swedish” actuarial balance developed by Perez-Salamero et al. (2017) by adding an income statement which fully explains the reasons behind the changes in the system’s solvency by type of benefit. In line with the reference model, assets and liabilities are measured at present value at each reporting date, and changes in present value are reported in each period as income or expenses and are included on the income statement.…
A “Swedish” actuarial balance for a notional defined contribution pension scheme with disability and minimum pension benefits
2017
This article proposes a “Swedish” type actuarial balance sheet (ABS) for a notional defined contribution (NDC) scheme with disability and minimum pension benefits. The proposed ABS splits the pension system in two parts: the pure NDC part and the redistributive part, which includes the assets and liabilities originating from non-contributory rights. The article contains a numerical example that sheds light on the real applicability of our proposal. The model has practical implications that could be of interest to policy-makers, given that it integrates actuarial and social aspects of public pensions and discloses the real cost of redistribution through minimum pensions.
Assessing Pension System Reforms in Latin America
2004
During the 1980s and 1990s sweeping structural changes were made to social security systems in a number of Latin American countries. This paper aims to assess the impact of those reforms, showing their possible limitations, risks and internal malfunctions. The impact on the following will be considered: (a) coverage; (b) risks and uncertainty; (c) redistributive aspects; (d) savings; and (e) the administration and management costs of the new system.