Economic Challenges of Pension Systems

Economic Challenges of Pension Systems
	Foreword
		References
	Preface
	Contents
	Chapter 1: Public Pension Systems: Bibliometric Study of Academic Publications in Scientific Journals
		1.1 Introduction
		1.2 Theoretical Framework
		1.3 Methodology
			1.3.1 Methodology of Calculations
		1.4 Results
			1.4.1 Volume Indicators
			1.4.2 Overlap and Singularity
			1.4.3 Authors
			1.4.4 Journals
		1.5 Conclusions
		References
	Chapter 2: Demographic and Social Challenges in the Design of Public Pension Schemes
		2.1 Introduction
		2.2 New Demographic Indicators on Which to Base Pension Reforms
			2.2.1 Traditional Indicators of Population Ageing
			2.2.2 Alternative Indicators of Population Ageing
			2.2.3 Other Indicators of Population Ageing
		2.3 New Family Structures
			2.3.1 Changes in Family Patterns
			2.3.2 Household Composition
		2.4 Well-Being Indicators Among the Elderly Population
			2.4.1 Heterogeneity in Longevity by Marital Status
			2.4.2 Active Ageing
		2.5 Conclusions and Discussion
		References
	Chapter 3: The Public Pension Systems and the Economic Crisis
		3.1 Introduction
		3.2 Magnitude of the Economic Crisis in the EU: An Overview
		3.3 Typology of Pensions Systems
		3.4 The Reform of European Pensions in Times of Crisis
		3.5 Conclusions
		References
	Chapter 4: Pensions, Economic Growth and Welfare in Advanced Economies
		4.1 Introduction
		4.2 Pensions, Savings, Employment and Growth: Funded Versus PAYG
		4.3 Efficiency and Sustainability
		4.4 Redistribution Versus Efficiency and Contributiveness
		4.5 Conclusions
		References
	Chapter 5: Pension Systems and Labour Market Participation in European Countries
		5.1 Introduction
		5.2 Literature Review
		5.3 Theoretical and Conceptual Framework
		5.4 Methodology and Data
		5.5 Results
		5.6 Discussion and Conclusions
		References
	Chapter 6: Sustainability of Public Pension Systems
		6.1 Introduction
		6.2 Sustainability According to the Obligations of the System: Defined Benefit and Defined Contribution
			6.2.1 Defined Contribution Systems
			6.2.2 Defined Benefit Systems
			6.2.3 Mixed Benefit Systems
		6.3 Different Ways of Measuring the Sustainability of a Pension System
		6.4 Indicators of the Sustainability of the Public Pension Systems of the Main Countries
			6.4.1 Most Used Sustainability Indicators by Individual Countries and Supranational Bodies to Measure the Sustainability of Pe...
			6.4.2 Indicators Used by International Organizations
			6.4.3 Synthetic or Composite Indicators
				6.4.3.1 Allianz-Pension Sustainability Index
				6.4.3.2 Melbourne Mercer Global Pension Index: The Sustainability Sub-index
		6.5 Conclusions
		Annex I
		References
	Chapter 7: Equity of Public Pension System
		7.1 Introduction
		7.2 Fairness in the Sense of Justice
		7.3 Fairness in the Sense of Equity
		7.4 Fairness in the Sense of Neutrality
		7.5 Fairness in the Sense of Solidarity
		7.6 Fairness in the Sense of Integrity
		7.7 Conclusions
		References
	Chapter 8: Adequacy of Public Pension Systems
		8.1 Introduction
		8.2 Adequacy of Pension Concept
			8.2.1 Protection Against Poverty
			8.2.2 Maintenance of a Reasonable Standard of Living
		8.3 Pension Adequacy Measure Indicators
		8.4 Measuring with Synthetic Indicators
			8.4.1 Global Pension Index (Mercer)
			8.4.2 Retirement Income Adequacy Indicator (Allianz)
			8.4.3 Adequacy of Pension System Indicator (Dr. Filip Chybalski)
		8.5 Conclusions
		References
	Chapter 9: Longevity Insurance Benefits for Social Security: International Experience
		9.1 Introduction
		9.2 Previous Literature
		9.3 The Role of Longevity Insurance Benefits in the Early History of Social Security
		9.4 Longevity Insurance Annuities Provided by the Government
		9.5 International Survey
		9.6 Comparison Across Countries
		9.7 Conclusions
		References
	Chapter 10: The French Mandatory Occupational Pension Scheme: History and Properties of a Point System
		10.1 Introduction
		10.2 Genesis and History
		10.3 Pension Rules and Tax Distortion
			10.3.1 General Principles
			10.3.2 Computation Rules
			10.3.3 Implicit Marginal Tax Rate: Definition and Computation
		10.4 Governance in ``Crisis Mode´´: A Focus on the 30 October 2015 Agreement
			10.4.1 General Context and Sustainability Issues
			10.4.2 Choice to Restore Solvency
			10.4.3 Impact on Implicit Marginal Tax Rate
		10.5 Conclusion
		Annex
		References
	Chapter 11: Last Lessons Learned from the Swedish Public Pension System
		11.1 Introduction
		11.2 Swedish Public Pension System
		11.3 Development of Solvency: Balance Sheets for 2007-2015
		11.4 Conclusions and New Responses to Economic Crisis
		Annex A: Balance Sheets and Income Statements in Swedish Kronor
		References
	Chapter 12: The New Wave of Pension Reforms in Latin America
		12.1 Introduction
		12.2 Description of the Re-reforms and Evaluation of Their Effects
			12.2.1 Chile
			12.2.2 Argentina
			12.2.3 Bolivia
		12.3 Ongoing Re-reforms or Discussions
			12.3.1 Dominican Republic
			12.3.2 El Salvador
			12.3.3 Panama
			12.3.4 Peru
		12.4 Conclusions and Lessons from the Re-reforms
		References
	Chapter 13: Financial Sustainability of the Algerian Retirement System: A Perspective Analysis of the 50 Coming Years
		13.1 Introduction
		13.2 Overview of the Algerian Retirement System
		13.3 The Financial Balance of CNR: Evolution Overview
			13.3.1 Population Growth and Structure
			13.3.2 Average Age of Retirement
			13.3.3 Retirement System Outcomes
			13.3.4 Retirement Incomes
		13.4 Population Projection
			13.4.1 Baseline Population
			13.4.2 Mortality Forecast
			13.4.3 Fertility Forecast
			13.4.4 Population Projection Results
			13.4.5 The Evolution of the Populations at Working and at Retirement Ages
		13.5 Economic Factor Future Evolution Scenarios
			13.5.1 Labor Force, Workforce, and Affiliation to Social Security
			13.5.2 The Affiliation Rate Among the Population at Working Age
			13.5.3 Evolution of the Average Contribution
			13.5.4 Evolution of the Average Retirement Benefit
			13.5.5 Survivor´s Retirement Expenses and Administration Fees
		13.6 Incomes-Outcomes Projection
			13.6.1 Portfolio in Payment Phase
			13.6.2 Next Generation of Contributors and Retirees
			13.6.3 The Financial Stability of the Whole Portfolio
		13.7 Conclusion
		References
	Chapter 14: Pension Design and Risk Sharing: Mixed Solutions Between Defined Benefit and Defined Contribution for Public Pensi...
		14.1 Introduction
		14.2 The Existing Defined Benefit System in the Belgian First Pillar
		14.3 A New Points System
		14.4 Comparison with a NDC Scheme
		14.5 Between DB and DC: The Musgrave Rule
		14.6 Risk-Sharing Coefficient
		14.7 A Convex Invariant
		14.8 A Continuous Time Framework
		14.9 Numerical Illustrations
		14.10 The Sustainability Factor
		14.11 Conclusion
		Appendix: Another Family of Pension Schemes Defined through a Convex Invariant
		References
	Chapter 15: Automatic Balancing Mechanisms for Pay-As-You-Go Pension Finance: Do They Actually Work?
		15.1 Introduction
		15.2 Pension Reforms: An Overview
		15.3 ABMs that Link Future Pensions to Changes in Demographic Factors
			15.3.1 Finland
			15.3.2 Portugal
			15.3.3 Germany
			15.3.4 Sweden
			15.3.5 Canada
			15.3.6 Japan
		15.4 Conclusions
		References
	Chapter 16: The Role of Complementary Pensions
		16.1 Introduction
		16.2 Legislative Changes in Complementary Pensions in Europe
		16.3 Occupational Pension Plans
		16.4 Some Considerations Regarding Decumulation
		16.5 Behavioural Economics Applied to Pensions
			16.5.1 What Is Behavioural Economics?
			16.5.2 What Role Can Behavioural Economics Play in Improving Pension Systems?
		16.6 Next Steps
		References
	Chapter 17: A Two-Regime Performance Test of the Mexican Public Pension Funds (SIEFOREs)
		17.1 Introduction
		17.2 Literature Review
		17.3 Econometric Test
			17.3.1 Type 1 (SB1) SIEFOREs Test Results
			17.3.2 Type 2 (SB2) SIEFOREs Test Results
			17.3.3 Type 3 (SB3) SIEFOREs Test Results
			17.3.4 Type 4 (SB4) SIEFOREs Test Results
		17.4 Conclusions
		References
	Chapter 18: Regime-Switching in the Volatility of Mexican Pension Fund Returns
		18.1 Introduction
		18.2 Literature Review
		18.3 The Defined-Contribution System in Mexico
			18.3.1 Types of Pension Funds and Main Characteristics
			18.3.2 Investment Regime for Basic SIEFOREs
			18.3.3 Pension Funds Behavior
			18.3.4 Descriptive Statistic Parameters
		18.4 Methodological Issues
		18.5 Analysis of Mexican Retirement Pension Fund Volatility
		18.6 Concluding Remarks
		References
	Chapter 19: Critical Issues of Public Pension System: The Italian Case
		19.1 Introduction
		19.2 The Demographic Structure
		19.3 Pension Reforms in Italy
		19.4 The Pension Scheme
		19.5 Performance Indicators
		19.6 An Application to Italian Case
		19.7 Conclusions
		References
	Chapter 20: Reinventing Social Security: Towards a Two-Step Mixed Pension System
		20.1 Introduction and Major Results
		20.2 The Impact of Increasing Longevity and Adverse Selection in the Life Annuity Market
		20.3 The Influence of Increased Longevity on Life-Cycle Changes: Understanding the `Problem´ of Pensions
		20.4 Description of the `Two Steps Mixed Pension System´
		20.5 Comparative Analysis of the Current Spanish PAYG System and the Two-Step Mixed System in Terms of Individual Financial So...
			20.5.1 Methodology for Calculating the Internal Rate of Return
			20.5.2 Empirical Analysis Compared in Financial Solvency Terms
		20.6 Comparative Analysis of the Sustainability of the Current PAYG System and the Two-Step Mixed System in Aggregate Terms to...
			20.6.1 Methodology of Income and Expenditure Projection of the System
			20.6.2 Comparative Empirical Analysis in Terms of Sustainability
		20.7 Final Comments
		References
	Index