How well does a partnership in pensions really work? The Israeli public/private pension mix

2002 ◽  
Vol 22 (2) ◽  
pp. 161-183 ◽  
Author(s):  
JOHN GAL
Keyword(s):  
Social Security ◽  
Old Age ◽  
Pension System ◽  
Pension Reform ◽  
Welfare States ◽  
Decision Makers ◽  
Test Case ◽  
Older Individuals ◽  
Social Security Systems ◽  
Security Systems

This paper takes the old-age pension system in Israel as a test case to examine the implications of proposals for pension reform now being debated or implemented in many welfare states. For over a decade, high on the agenda of decision-makers on both national and international levels, there has been the notion of moving towards a changing ‘partnership in pensions’ or, to put it more bluntly, towards greater privatisation of social security. Virtually since its emergence in the 1950s, the Israeli old-age pension has been based primarily upon a mix of low universal state pensions and income-related private occupational pensions. This paper compares the British and Israeli social security systems for older people in the wake of the reforms recently introduced in Britain and analyses the implications of the Israeli structure on the distribution of social security spending and on the wellbeing of different categories of older individuals.

scholarly journals Kapitaldeckungs- versus Umlageverfahren

2000 ◽  
Vol 1 (4) ◽  
pp. 383-405 ◽  
Author(s):  
Friedrich Breyer
Keyword(s):  
Social Security ◽  
Old Age ◽  
Social Security Systems ◽  
Financing System ◽  
Security Systems ◽  
Rates Of Return ◽  
Radical Reform ◽  
Funded Pensions ◽  
Unfunded Social Security ◽  
Academic Debate

Abstract In the academic debate on systems of old-age insurance no question is as controversial and as vigorously discussed as the choice between funded and unfunded financing modes. At first glance this is surprising because this choice seems to involve only an efficiency problem. However, closer inspection reveals that a change of the financing system implies redistribution, if not within, at least among, different generations. In this contribution, the present state of knowledge on the functioning and the effects of the two financing systems is summarized. The analysis focuses on a comparison of rates of return and risks involved in each system and on the problems connected with a transition from unfunded to funded pensions. As a result it is argued that without reference to specific criteria of distributive equity among generations the nowadays popular call for radical reform of unfunded social security systems is not well founded.

Illusory Gains from Privatizing Social Security when Reform is Politically Unstable

2018 ◽  
Vol 24 (2) ◽  
Author(s):  
Marcin Bielecki ◽  
Krzysztof Makarski ◽  
Joanna Tyrowicz
Keyword(s):  
Social Security ◽  
Overlapping Generations ◽  
Pension System ◽  
Transition Path ◽  
Social Security Systems ◽  
Security Systems

AbstractWith compulsory funded public social security systems, pension savings constitute a large stock of assets. In this paper we consider an economy populated by overlapping generations, which may decide about abolishing the funded system and replacing it with the pay-as-you-go scheme (i.e. unprivatizing the pension system). We compare politically stable as well as politically unstable reforms and show that even if the funded system is overall welfare enhancing, the cohort distribution of benefits along the transition path may turn privatizing social security politically unsustainable.

scholarly journals An Indexation Mechanism for Retirement Age: Analysis of the Gender Gap

Risks ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 21
Author(s):  
Mariarosaria Coppola ◽  
Maria Russolillo ◽  
Rosaria Simone
Keyword(s):  
Life Expectancy ◽  
Social Security ◽  
Gender Gap ◽  
Pension System ◽  
Residual Life ◽  
Retirement Age ◽  
Longevity Risk ◽  
Social Security Systems ◽  
Security Systems ◽  
Averaged Model

The management of National Social Security Systems is being challenged more and more by the rapid ageing of the population, especially in the industrialized countries. In order to chase the Pension System sustainability, several countries in Europe are setting up pension reforms linking the retirement age and/or benefits to life expectancy. In this context, the accurate modelling and projection of mortality rates and life expectancy play a central role and represent issues of great interest in recent literature. Our study refers to the Italian mortality experience and considers an indexing mechanism based on the expected residual life to adjust the retirement age and keep costs at an expected budgeted level, in the spirit of sharing the longevity risk between Social Security Systems and retirees. In order to combine fitting and projections performances of selected stochastic mortality models, a model assembling technique is applied to face uncertainty in model selection, while accounting for uncertainty of estimation as well. The resulting proposal is an averaged model that is suitable to discuss about the gender gap in longevity risk and its alleged narrowing over time.

Protection mechanisms in the old-age pension systems of the CEE countries

2012 ◽  
Vol 11 (4) ◽  
pp. 581-605 ◽  
Author(s):  
MARCIN KAWIŃSKI ◽  
DARIUSZ STAŃKO ◽  
JOANNA RUTECKA
Keyword(s):  
Social Security ◽  
Pension System ◽  
The State ◽  
Market Mechanism ◽  
Social Security Systems ◽  
Security Systems ◽  
Protection Mechanism ◽  
Role Of The State ◽  
The Social ◽  
Protection Mechanisms

AbstractSince 1990s, substantial changes in the role of the state in the social security schemes can be observed in the countries of the Central and Eastern Europe (CEE). While the general framework of social benefits in the CEE countries is still defined by the state, more and more often the task of provision of social security is transferred to the private entities. Such privatization of social policy makes the need for protection mechanism and some state guarantees even stronger. It is still the state that is responsible for the final outcome of social security systems so that is why governments are directly providing or indirectly creating safety mechanisms built-in the private market mechanism used for social purposes. The paper surveys various types of the protection mechanisms in selected CEE countries that exist in the important and already most privatized element of the social security system – the pension system. While describing the safety measures and possible guarantees, special attention is paid to the new forms that have been built up recently. The paper covers both mandatory and voluntary pension markets and identifies present and possible threats in the existing frameworks that can harm the social security. The paper concludes with general assessment and policy recommendations.

scholarly journals Noriyuki Takayama (ed). Pensions in Asia: Incentives, Compliance and Their Role in Retirement. Tokyo: Maruzen Co. Ltd. 2005. 256 Pages. Hardbound. Price not given.

2004 ◽  
Vol 43 (1) ◽  
pp. 99-101
Author(s):  
Naushin Mahmood
Keyword(s):  
Social Security ◽  
Old Age ◽  
Social Attitudes ◽  
Ageing Population ◽  
Asian Countries ◽  
Social Security Systems ◽  
Security Systems ◽  
Fast Decline ◽  
Challenging Situation ◽  
Policy And Planning

In view of the rapid ageing of population in many Asian countries due to a longer life expectancy and a fast decline in fertility, the concerns about the sustainability of public pensions and social security systems have gained increased relevance both at policy and planning levels. Countries that have already experienced demographic transition and indicate rising trends in old-age dependency rates are facing a challenging situation not only to improve their pension systems but also to comply with the financing of retirement and old-age benefit schemes. The effects of an ageing population in these countries are becoming apparent in terms of increasing costs of the health-care system, social security schemes, and changing social attitudes towards older people that demand an assessment of the support base to meet their socio-economic needs.

scholarly journals Incentives to retire later – a solution to the social security crisis?

2002 ◽  
Vol 1 (2) ◽  
pp. 111-130 ◽  
Author(s):  
FRIEDRICH BREYER ◽  
MATHIAS KIFMANN
Keyword(s):  
Social Security ◽  
Pension System ◽  
Retirement Age ◽  
Negative Effects ◽  
Social Security Systems ◽  
Security Systems ◽  
Long Run ◽  
The Social ◽  
Unfunded Social Security ◽  
Increasing Function

As one possible solution to the well-known financing crisis of unfunded social security systems, an increase in the retirement age is a popular option. To induce workers to retire later, it has been proposed to strengthen the link between retirement age and benefit level. The present paper is devoted to analyzing the long-run financial implications of such a reform. We show that with actuarial adjustments the long-run contribution rate is an increasing function of the retirement age chosen by workers. Moreover, the implicit tax paid to the pension system by a participant can increase in the long run if the retirement age rises in response to a ‘steep’ adjustment rule. In this sense, the proposed ‘cure’ may worsen the disease. Finally, we show how the negative effects can be avoided by forming a capital stock from the additional revenues due to later retirement.

scholarly journals Understanding Social Security Development: Lessons From the Chinese Case

SAGE Open ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 215824402110326
Author(s):  
Guan Huang ◽  
Zhuang Cai
Keyword(s):  
Social Security ◽  
Political Legitimacy ◽  
Political Context ◽  
Common Mechanism ◽  
Social Security Systems ◽  
Security Systems ◽  
Security Research ◽  
Chinese Case ◽  
Thematic Approach ◽  
Convergence And Divergence

Understanding the development of social security systems constitutes the ultimate goal of social security research. This review traces and compares two schools of thought regarding social security development: the convergence and divergence schools. Using a thematic approach, this article first categorizes extant studies into one of these two schools and then identifies the broadly accepted mechanism of social security development by comparing them. After reviewing the extant research and its theoretical underpinnings, this article applies Mill’s methods of agreement and difference to show how the Chinese case contributes to and challenges our understanding of social security development. By discussing the assumptions of current research on social security development in light of the Chinese case, this article illuminates how political legitimacy serves as a common mechanism of social security development regardless of political context or structure.

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