Fund management and its effect in the Greek social security system

2007 ◽  
Vol 8 (4) ◽  
pp. 485-500 ◽  
Author(s):  
NIKOLAOS T. MILONAS ◽  
GEORGE A. PAPACHRISTOU ◽  
THEODORE A. ROUPAS
Keyword(s):  
Social Security ◽  
Financial Risk ◽  
Pension Fund ◽  
Pension System ◽  
Social Security System ◽  
Security System ◽  
Public Pension ◽  
Fund Management ◽  
Efficient Management ◽  
Pension Fund Management

AbstractEconomic and demographic slowdown has put under strain public pension systems around the globe. In this paper, we discuss the characteristics of the Greek social security system and investigate the issue of pension fund management. Our empirical analysis focuses on whether flexible investment rules (including equity investment) could have taken the pressure off the Greek public pension system while reducing the risks associated with such flexibility. The empirical results of the paper suggest that efficient management of reserves can result in additional significant revenues at acceptable levels of financial risk. However, pension fund management flexibility cannot by itself resolve the problem of social security system.

Risk tolerance and retirement income composition

2008 ◽  
Vol 8 (2) ◽  
pp. 131-151
Author(s):  
JONATHAN A. SCHWABISH ◽  
JULIE H. TOPOLESKI
Keyword(s):  
Social Security ◽  
Financial Risk ◽  
Social Security System ◽  
Risk Tolerance ◽  
Security System ◽  
Earnings Distribution ◽  
The Social ◽  
Retirement Funds ◽  
Lifetime Earnings ◽  
The Impact

SUMMARYProposed changes to the Social Security system will affect the financial risk workers will face in their retirement differently across the income distribution. This study examines levels of financial risk workers face at different points in the lifetime earnings distribution. To do so, we use a microsimulation model that projects individual demographic and economic characteristics within the context of the Social Security system and the macroeconomy to assess the impact of two policy changes on the levels of lifetime benefits available to current and future retirees. Further, we incorporate data on pensions and savings to illustrate differences in the level and distribution of retirement funds across the earnings distribution. This exercise allows us to assess the financial risk workers face in their retirement, both within the Social Security system itself and within a broader view of the stream of total available retirement funds. We also use survey data to show that low earners are the least willing to tolerate such risk.

Portfolio allocation for public pension funds

2011 ◽  
Vol 10 (2) ◽  
pp. 221-245 ◽  
Author(s):  
GEORGE PENNACCHI ◽  
MAHDI RASTAD
Keyword(s):  
Pension Fund ◽  
Pension Funds ◽  
Pension Plans ◽  
Public Pension ◽  
Annual Data ◽  
Portfolio Risk ◽  
Fund Management ◽  
Pension Fund Management ◽  
Portfolio Allocations ◽  
State Pension

AbstractThis paper presents a model of a public pension fund's choice of portfolio risk. Optimal portfolio allocations are derived when pension fund management maximize the utility of wealth of a representative taxpayer or when pension fund management maximize their own utility of compensation. The model's implications are examined using annual data on the portfolio allocations and plan characteristics of 125 state pension funds over the 2000–2009 period. Consistent with agency behavior by public pension fund management, we find evidence that funds chose greater overall asset – liability portfolio risk following periods of relatively poor investment performance. In addition, pension plans that select a relatively high rate with which to discount their liabilities tend to choose riskier portfolios. Moreover, consistent with a desire to gamble for higher benefits, pension plans take more risk when they have greater representation by plan participants on their Boards of Trustees.

scholarly journals The social security reform process in Italy: where do we stand?

2004 ◽  
Vol 3 (2) ◽  
pp. 165-195 ◽  
Author(s):  
AGAR BRUGIAVINI ◽  
VINCENZO GALASSO
Keyword(s):  
Social Security ◽  
Pension System ◽  
Social Security System ◽  
Economic Incentives ◽  
Security System ◽  
The Political ◽  
Reform Process ◽  
Italian Population ◽  
Positive Effects ◽  
The Social

A reform process is underway in Italy. Achieving financial sustainability of the social security system has been the first objective characterizing the reforms of 1990s, but these have also introduced rules which aim at a more actuarially fair system. Indeed the social security system prevailing in Italy, financed on a PAYG basis, was, at the end of the 1980s, clearly unsustainable and also extremely unfair to some group of workers, enacting a form of perverse redistribution which is typical of ‘final salary’ defined benefit systems. It was also a system characterized by strong incentives to retire early.In this paper we briefly describe the different regimes of the Italian pension system in its recent history and focus on some aspects of the reform process taking place during the 1990s. Since economists and policy makers are still struggling to assess the results and the long-term effects of these reforms we provide both a survey of this debate and some fresh evidence on the evaluation of the policy changes. We carry out this analysis with a particular emphasis on two aspects which are relevant in the debate. On the one hand we stress the role of economic incentives and the overall fiscal implications of changing the systems as well as these incentives. On the other hand we emphasize the intergenerational considerations and the political implications of the ageing process of the Italian population. From our description it emerges that the overall design of the Italian reform is probably a good one, and yet some more steps need to be taken to speed up some of the positive effects of the reform process that, due the adverse demographic trends affecting PAYG systems as well as the political arena, could easily evaporate.

scholarly journals PENSION DEFICIT IN BRAZILIAN SOCIAL SECURITY SYSTEM: LEGAL REMARKS AND STRATEGIES TOWARDS FINANCIAL SUSTAINABILITY

2018 ◽  
Vol 2 (2) ◽  
pp. 309-329
Author(s):  
Cristiane Miziara Mussi ◽  
Marcos Roberto Pinto
Keyword(s):  
Social Security ◽  
Pension System ◽  
Social Indicators ◽  
Social Security System ◽  
Security System ◽  
Educational Systems ◽  
Financial Sustainability ◽  
Informal Workers ◽  
Brazilian Government ◽  
The Impact

The present article consists in the brief analysis of the evolution of the Brazilian General Regime Social Security, depicting its frailty against subsequent legal reforms through which it has passed in recent years. It also deals with the impact of socioeconomic changes on the current and future financial sustainability of the Brazilian pension system. In fact, the evolution of the statistics concerning such social indicators can be quite decisive for the future sustainability of the Brazilian social security system. For this, we used the phenomenological method - hermeneutics, by privileging theoretical studies and analysis of documents and texts. Such research is very important in order to provide a glimpse of the general social security regimen in Brazil and its future prospects. The main results show that there is a budgetary concern due to the growth in life expectancy and declining birth rate. Even with the absence of the current financial deficit proclaimed by the media and the federal government, there will be the need for reform to fit the budget of Brazil’s future Social Security System. According to our analysis, the improvement of Brazilian Social Security requires legal autonomy of the Social Security Revenue (thus preventing the withdrawal of it funds to defray social security benefits belonging to another public sectors), the increase of minimum wage in the country, and public policies to stimulate the entry of informal workers in the General Social Security Regimen. Furthermore, this article suggests that, as a matter of immediate public policy, the Brazilian government should focus more energetically in improvement of educational systems, which presents itself as a strong indicator for the improvement of social welfare budget. 

scholarly journals PENSION DEFICIT IN BRAZILIAN SOCIAL SECURITY SYSTEM: LEGAL REMARKS AND STRATEGIES TOWARDS FINANCIAL SUSTAINABILITY

2014 ◽  
Vol 2 (2) ◽  
pp. 309-329
Author(s):  
Cristiane Miziara Mussi ◽  
Marcos Roberto Pinto
Keyword(s):  
Social Security ◽  
Pension System ◽  
Social Indicators ◽  
Social Security System ◽  
Security System ◽  
Educational Systems ◽  
Financial Sustainability ◽  
Informal Workers ◽  
Brazilian Government ◽  
The Impact

The present article consists in the brief analysis of the evolution of the Brazilian General Regime Social Security, depicting its frailty against subsequent legal reforms through which it has passed in recent years. It also deals with the impact of socioeconomic changes on the current and future financial sustainability of the Brazilian pension system. In fact, the evolution of the statistics concerning such social indicators can be quite decisive for the future sustainability of the Brazilian social security system. For this, we used the phenomenological method - hermeneutics, by privileging theoretical studies and analysis of documents and texts. Such research is very important in order to provide a glimpse of the general social security regimen in Brazil and its future prospects. The main results show that there is a budgetary concern due to the growth in life expectancy and declining birth rate. Even with the absence of the current financial deficit proclaimed by the media and the federal government, there will be the need for reform to fit the budget of Brazil’s future Social Security System. According to our analysis, the improvement of Brazilian Social Security requires legal autonomy of the Social Security Revenue (thus preventing the withdrawal of it funds to defray social security benefits belonging to another public sectors), the increase of minimum wage in the country, and public policies to stimulate the entry of informal workers in the General Social Security Regimen. Furthermore, this article suggests that, as a matter of immediate public policy, the Brazilian government should focus more energetically in improvement of educational systems, which presents itself as a strong indicator for the improvement of social welfare budget. 

La participación de la Oficina del Trabajo en la configuración del sistema de previsión social chileno, 1909-1925

2018 ◽  
pp. 73
Author(s):  
Daniel Ahumada Benítez ◽  
Alejandro Salas Miranda
Keyword(s):  
Social Security ◽  
Pension Fund ◽  
Social Security System ◽  
The State ◽  
Security System ◽  
Civil Servants ◽  
Legal Regulations ◽  
The Social ◽  
Security Fund ◽  
Set Up

ResumenEl objetivo de este trabajo es analizar el rol que tuvo la Oficina del Trabajo en la formulación de las normativas legales que crearon las primeras instituciones de previsión social en Chile entre 1909 y 1925. Se plantea que la Oficina del Trabajo tuvo un rol activo y fundamental en la creación del sistema de previsión social que se configuró para 1925, al ser partícipe de las discusiones y diseño de las leyes y reglamentos que rigieron estas instituciones de seguridad social, que fueron la Caja de Ahorro de los Ferrocarriles del Estado (1911), con su reformulación (1918), Caja del Seguro Obrero (1924), Caja de Empleados Particulares (1924) y Caja de Empleados Públicos y Periodistas (1925). Las fuentes provienen principalmente del Fondo de la Dirección del Trabajo del Archivo Nacional de la Administración y del Boletín de la Oficina del Trabajo, además de otras publicaciones periódicas.AbstractThe objective of this paper is to analyze the Labor Office role in formulating the legal regulations that created the first social security institutions in Chile between 1909 and 1925. It is argued that the Labor Office played an active and fundamental role in creating the social security system, set up for 1925, since it participated in discussions and designing of laws and regulations governing the first social security institutions, which were the State Railways’ Savings Fund (1911) and its reformulation (1918), the Worker Security Fund (1924), the Private Employee Pension Fund (1924) and the Civil Servants and Press Staff Pension Fund (1925). Sources are mainly from the Labor Directorate Fund of the National Administration Archive and the Labor Office Bulletin, as well as other material.Keywords: Labor Office, welfare funds, social security, State social intervention.ResumoO objetivo deste trabalho é analisar a função que teve o Escritório do Trabalho na formulação das normativas legais que criaram as primeiras instituições de previdência social no Chile entre 1909 e 1925. Propõe-se que o Escritório do Trabalho teve um papel ativo e fundamental na criação do sistema de previdência social que se configurou para 1925, ao participar das discussões e do desenho das leis e regulamentos que regeram às primeiras instituições de segurança social, as quais foram a Caixa Econômica dos Transportes Ferroviários do Estado (1911) e sua reformulação (1918), Caixa de Seguro Operário (1924), Caixa de Empregados Particulares (1924) e Caixa de Empregados Públicos e Jornalistas (1925). As fontes provieram principalmente do Fundo da Direção do Trabalho do Arquivo Nacional da Administração e do Boletim do Escritório do Trabalho, além de outras publicações periódicas.Palavras-chave: Escritório do Trabalho, caixas de previdência, segurança social, intervenção social do Estado. 

scholarly journals The Measurement of Social Security Convergence: The Case of European Public Pension Systems since 1950

1999 ◽  
Vol 28 (4) ◽  
pp. 595-618 ◽  
Author(s):  
PAUL JOHNSON
Keyword(s):  
Social Security ◽  
System Development ◽  
Social Security System ◽  
Security System ◽  
Public Pension ◽  
Social Security Systems ◽  
Security Systems ◽  
Regime Types ◽  
The Impact ◽  
Over Time

This article proposes a novel way of measuring cross-national changes over time in the outputs of social security systems. Traditional approaches to the comparative analysis of social security systems use expenditure levels, regime types or poverty and inequality rates to rank countries and map change over time. All these approaches encounter the problem of determining how much of the observed change is due to internal developments within the social security system, and how much due to exogenous social and economic factors. Taking the example of public pensions in five European countries since 1950, this article demonstrates how formal social security rules can be used in a simulation model to evaluate changes in public pension payments for a variety of hypothetical individuals characterised by different levels of lifetime income. This procedure produces direct measures of the impact of changes in social security systems which are entirely independent of exogenous developments in social and economic structures. This new method reveals the ‘pure’ effect of internal social security system development over time.

scholarly journals Pension fund governance: The Polish experience

2014 ◽  
Vol 11 (3) ◽  
pp. 349-357
Author(s):  
Adam Samborski
Keyword(s):  
Pension Fund ◽  
Pension System ◽  
Pension Funds ◽  
Small Fragment ◽  
Fund Management ◽  
Pension Systems ◽  
Pension Fund Management ◽  
Polish Experience ◽  
Fund Governance

Despite a comprehensive pension related debate held on the governmental level and in media in Poland, little time was spent, however, on discussing nature and usefulness of governance in the context of pension systems aimed at would-be-pensioners. Attention is predominantly paid to the role of governance for investments. Unfortunately, governance is not addressed, with reference to pension funds, the way it should be. The author is looking for answers to questions about the state of pension fund governance in Poland, thus trying to find methods for improvement. Nevertheless, this text concentrates on a small fragment of the pension system in Poland. The article aims at attempting identification of issues to be faced by governance in voluntary pension funds that are managed by universal pension fund management companies.

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