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

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. 

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. 

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.

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.

SOCIAL SECURITY EVALUATION: A CRITIQUE

2005 ◽  
Vol 9 (1) ◽  
pp. 57-97 ◽  
Author(s):  
JORGE SOARES
Keyword(s):  
Social Security ◽  
Direct Effect ◽  
Well Being ◽  
Social Security System ◽  
Security System ◽  
Security Evaluation ◽  
Optimal Consumption ◽  
Labor Income ◽  
Lifetime Income ◽  
The Impact

I study the bias of actuarially fair measures commonly used to evaluate the impact of a social security system on the well-being of individuals. I investigate how the magnitude of this bias is affected by different features of a pay-as-you-go social security system. Social security affects an individual's welfare in ways other than through its direct effect on her lifetime income. It influences labor and savings decisions and hence factor prices, affecting labor income and the return to savings. Although social security can provide insurance against risk, it can also push borrowing-constrained individuals further away from their optimal consumption paths. I show that, by ignoring these features, actuarially fair measures can grossly misevaluate the impact of social security on the well-being of an individual.

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 Male labor force participation and social security in Mexico

2013 ◽  
Vol 13 (2) ◽  
pp. 145-171 ◽  
Author(s):  
EMMA AGUILA
Keyword(s):  
Social Security ◽  
Labor Force ◽  
Labor Force Participation ◽  
Early Retirement ◽  
Social Security System ◽  
Security System ◽  
Financial Sustainability ◽  
Social Security Systems ◽  
Retirement Behavior ◽  
Working Age

AbstractLabor force participation among Mexican males in their early retirement years (60–64 years of age) has decreased in recent decades, from 94.6% in 1960 to 65.2% in 2010. Similar trends are evident elsewhere in Latin America, and have occurred in the developed world. Such trends pose challenges to the financial sustainability of social security systems as working-age populations decrease and those in retirement increase both because of demographic trends and decisions to take early retirement. In this study, we find that the Mexican social security system provides incentives to retire early. The retirement incentives of the Mexican social security system affect retirement behavior, and may be one of the main contributors to early retirement decisions, particularly for lower-income populations. We simulated the effect of the reform from a pay-as-you-go to the new Personal Retirement Accounts (PRA) system and we find that the PRA system also provides incentives for early retirement. Further analysis is needed to assess the financial sustainability of the social security system and financial security in old age for the largest cohorts in Mexico that will begin to retire by 2040.

scholarly journals The development of China’s urban social security system, 1949–1988

2021 ◽  
Author(s):  
Guan Huang
Keyword(s):  
Economic Growth ◽  
Social Security ◽  
Chinese Communist Party ◽  
Institutional Design ◽  
Statistical Data ◽  
Social Security System ◽  
Structural Features ◽  
Security System ◽  
Chinese Case ◽  
The Impact

Abstract In examining the development of urban social security in China between 1949 and 1988, this study elucidates the impact of a country’s politics on the modification of the design, operation, and transformation of its social security. This study complements existing theories and questions regarding the correlation between economic growth and the development of social security and tests the utility of popular theories of social security development for understanding the Chinese case. In order to conduct vertical comparison, this study divides the period of social security development—namely, 1949 to 1988—according to changes in Chinese Communist Party (CCP) doctrine. Focusing on the emergence of and modifications to China’s social security system before its reform in 1988, this study identifies the structural features and philosophy of its institutional design and analyses its development using statistical data. More specifically, this study demonstrates that changes in the doctrine of the CCP decisively impacted the development of China’s urban social security. In doing so, this study demonstrates a new means of predicting a country’s social security development.

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