Pension reform is high on the policy agenda of many advanced and emerging market economies. In advanced economies the challenge is generally to contain future increases in public pension spending as ...the population ages. In emerging market economies, the challenges are often different. Where pension coverage is extensive, the issues are similar to those in advanced economies. Where pension coverage is low, the key challenge will be to expand coverage in a fiscally sustainable manner. This volume examines the outlook for public pension spending over the coming decades and the options for reform in 52 advanced and emerging market economies.
This book challenges existing theories of welfare state change by analyzing pension reforms in France, Germany, and Switzerland between 1970 and 2004. It explains why all three countries were able to ...adopt far-reaching reforms, adapting their pension regimes to both financial austerity and new social risks. In a radical departure from the neo-institutionalist emphasis on policy stability, the book argues that socio-structural change has led to a multidimensional pension reform agenda. A variety of cross-cutting lines of political conflict, emerging from the transition to a post-industrial economy, allowed governments to engage in strategies of political exchange and coalition-building, fostering broad cross-class coalitions in support of major reform packages. Methodologically, the book proposes a novel strategy to analyze lines of conflict, configurations of political actors, and coalitional dynamics over time. This strategy combines quantitative analyses of actor configurations based on coded policy positions with in-depth case studies.
Looks at the policy choices involved in creating pension schemes, particularly whether it is advisable to move away from government pay-as-you-go pensions toward private or publicly funded plans. ...Examines the reasons for the controversy surrounding pension design, and whether the second level of pension systems should be mandatory, private, funded, and defined-contribution.
We compare the long-term output and current account effects of pension reforms that increase the retirement age with those of reforms that cut pension benefits, conditional on reforms achieving ...similar fiscal targets. We show the presence of a policy trade-off. Pension reforms that increase the retirement age have a large positive effect on output, but a small (and often negative) effect on the current account. In contrast, reforms that cut pension benefits improve the current account balance but reduce output. Mixed pension reforms, which extend the working life and cut pension benefits, can simultaneously boost output and the current account.
As of December 2008, state governments had approximately $1.94 trillion set aside in pension funds for their employees. How does the value of these assets compare to the present value of states' ...pension liabilities? Just as future Social Security and Medicare liabilities do not appear in the headline numbers of the U.S. federal debt, the financial liability from underfunded public pensions does not appear in the headline numbers of state debt. If pensions are underfunded, then the gap between pension assets and liabilities is off-balance-sheet government debt. We show that government accounting standards require states to use procedures that severely understate their liabilities. We then discuss the true economic funding of state public pension plans. Using market-based discount rates that reflect the risk profile of the pension liabilities, we calculate that the present value of the already-promised pension liabilities of the 50 U.S. states amount to $5.17 trillion, assuming that states cannot default on pension benefits that workers have already earned. Net of the $1.94 trillion in assets, these pensions are underfunded by $3.23 trillion. This “pension debt” dwarfs the states' publicly traded debt of $0.94 trillion. And we show that even before the market collapse of 2008, the system was economically severely underfunded, though public actuarial reports presented the plans' funding status in a more favorable light.
In its June 2020 issue, Wirtschaftsdienst published an article entitled "Beitrags finanzierung im 'demografiegestressten' Rentensystem moglich" by Ernst Niemeier. Martin Werding takes a different ...view in a reply, and Ernst Niemeier explains his point of view in a response. JEL Classification: H53, H55, I38, J14 In der Juniausgabe 2021 veroffentlichte der Wirtschaftsdienst einen Aufsatz mit dem Titel "Beitragsfinanzierung im 'demografiegestressten' Rentensystem moglich" von Ernst Niemeier. Martin Werding vertritt in einer Replik eine andere Auffassung, im Anschluss erlautert Ernst Niemeier seinen Standpunkt in einer Erwiderung.
In Claiming Union Widowhood, Brandi Clay Brimmer analyzes the US pension system from the perspective of poor black women during and after the Civil War. Reconstructing the grassroots pension network ...in New Bern, North Carolina, through a broad range of historical sources, she outlines how the mothers, wives, and widows of black Union soldiers struggled to claim pensions in the face of evidentiary obstacles and personal scrutiny. Brimmer exposes and examines the numerous attempts by the federal government to exclude black women from receiving the federal pensions that they had been promised. Her analyses illustrate the complexities of social policy and law administration and the interconnectedness of race, gender, and class formation. Expanding on previous analyses of pension records, Brimmer offers an interpretive framework of emancipation and the freedom narrative that places black women at the forefront of demands for black citizenship.