Who governs pension indexation? Automatic government and the limits of quiet retrenchment in Europe

The topicality of the research subject. The foundations of the old-age pension scheme based on notional accounts, also referred to as the “notional defined contribution” or “non-financial defined contribution” (NDC) old-age pension scheme, were laid in Sweden in 1994, when the prevailing view was that a sustainable defined-contribution PAYG old-age pension scheme is impossible. Since then, the NDC system modifications have been implemented in several countries; since 2000, this scheme is also part of the Latvian pension system and works significantly better than the other part of the pension system - the funded pension scheme. However, the sustainability of NDC scheme is still being questioned. To prevent the NDC pension system sustainability problems, the authors (Pukis, M., & Dundure, I., 2012) in their publication “The Sustainability of the Pension System in Latvia” and (Dundure, I., 2015), the article “Sustainable Old-age Pension System by Developing Notional Defined Contribution Pension Scheme” have proposed a modified NDC model that provides sustainability of the pension system considering the known risks inherent in the pension system. The aim of the paper is to research and analyse the conditions for building a sustainable pension system by developing a Notional Defined Contribution pension scheme and working out an adjusted (modified) old-age pension calculation formula. In order to achieve the above mentioned aim, the authors set the following tasks: __Define the old-age pension system based on NDC principles; __Define the primary objectives of pension systems and perform analysis of pension adequacy; __Define the conditions for achieving a sustainable old-age pension system based on NDC principles; __Develop an adjusted (modified) old-age pension calculation formula based on NDC principles. In order to achieve the established aim and tasks, the following scientific research methods have been used in the work: analytical method, comparative method, logically and abstractedly constructive method. The analytical method and the comparative method are employed for conducting pension adequacy analysis and examination of pension capital indexation and indexation of pensions after retirement, as well as for the purpose of studying the Notional Defined Contribution pension system. The logically and abstractedly constructive method is employed for making forecasts and defining the main research results – the conditions for ensuring pension system sustainability that have been determined by the authors in the course of the research. The authors proved that by basing on the principle of generation solidarity and equity and through improvement of NDC pension calculation formula, it is possible to create the old-age pension system, which would be capable of excluding the old-age pension instability causes. DOI: http://dx.doi.org/10.5755/j01.eis.0.9.12798

L.4387/2016 introduced the recalculation of existent pensions based on a new type of formula and replacement. The difference between the amounts paid to pensioners at that time and the amounts calculated based on the new law, quoted as personal difference, was later legislated to be either cut, if it was positive, or paid in the long run, if it was negative. This coincided with legislation that froze pension indexation for the years up to 2022. Even though the pension indexation freeze is still valid, the pension reductions initially planned for 2019 were avoided. The pension increases, where applicable, were paid as planned, again in 2019. The extensive workload demanded to make the recalculation and the fiscal gap in contributions in the Greek pension system creates space for possible future application. In this view, this paper focuses on the fiscal effect of the reduction of the personal difference in combination with the freeze in pension indexation.

Postoperative decline in ambulatory function after lower extremity bypass is associated with higher short- and long-term mortality

Maintaining adequate pension levels throughout the entire retirement phase is a persistent challenge in old-age protection. Most public pension schemes in OECD (Organisation for Economic Co-operation and Development) countries provide for some form of indexation for pensions in payment. These mechanisms have been object of frequent revisions for different purposes, in particular across Europe. This article explores the social and financial policy objectives linked to standard indexation parameters in public pension schemes, and offers a rough taxonomy of additional factors used to modify traditional indexation arrangements, with a special focus on changing rules and practices adopted in the European Union (EU) area after the 2008 international economic and financial crisis. Analysis suggests that early responses were mainly driven by cost containment ideas, whereas more recently, a subtle shift towards adequacy-oriented interventions can be noticed. The article argues that restrictive pension indexation rules in combination with overall retrenchment of public pension provision fail to take into account the increasing duration of retirement and corresponding pension erosion. Such failure calls into question not only income security during retirement as a major objective of old-age pensions but also compliance with international standards of social security set by the International Labour Organisation (ILO) and the Council of Europe. More social policy research is needed in view of the increasing complexities of indexation rules, as shortfalls in indexation can cause significant impairment in the living conditions of older pensioners, predominantly women.

The 30 OECD member countries have very diverse pension systems. Current old-age public pension spending varies between less than 1 and more than 10 per cent of gross domestic product (GDP). Public spending on pensions per person aged 65 or over varies from less than 15 to more than 40 per cent of economy-wide GDP per head. For workers entering the labour market today, the target pension from all mandatory sources for an average earner varies between 30 and 100 per cent of individual earnings. Recent pension reforms have a number of common themes. First, pension eligibility conditions have been tightened. Second, the indexation of pensions in payment has become less generous. Third, some pension schemes link benefit levels to changes
\nin life expectancy. Finally, a number of countries have introduced defined-contribution pensions: privately managed schemes where the pension benefit depends on contributions and investment returns.

This paper tries to formulate conclusions about the indexation of old-age pensions. Pensions can be adjusted and indexed taking into consideration a wage increase. The point of indexation with regard to wages lies in the increment of pensions on to a new, higher nominal level of consumption opportunities (the pension increases), but leaving it at the same relative or potential level of consumption opportuni­ties (the pensions-to-earnings ratio remains constant). Pensions can also be adjusted and indexed according to an increase in the price level. The adjustment of pensions with respect to the price level maintains the real level of consumption (a person is always able to buy the same set of goods). The aim of this study is to identify the conditions of efficient indexation; to summarize the methods of indexation; to draw con­clusions as to which of these methods maximizes the wealth of taxpayers.

Due to rising dependency rates, the lengthening of life expectancy, and economic prospects, the indexation of pensions is a very topical issue. The pension adjustment deals with the necessity to maintain the buying power of retirement incomes. Automatic indexation of pension benefits and revaluation of pensionable basic income are common in most industrialised countries. Without upward revaluation, inflation reduces the real value of the pensionable income. The pension benefits and the pensionable basic salary can be indexed to prices or wages or to some combination of both.

The article examines in detail classical and modern approaches to the analysis of public policy, which cover a wide range of aspects and methods of studying political processes. The author emphasizes that each of the approaches contributes to a deeper understanding of various aspects of political dynamics and interaction between different actors. The institutional approach highlights the importance of formal and informal rules, norms, organizational structures and mechanisms that determine the behavior of political actors and ensure the stability and effectiveness of the implementation of political decisions. This allows us to build a clear picture of how institutions influence decision-making and contribute to the harmonization of political processes. The behavioral approach, in turn, emphasizes the human factor, which is important for understanding social interactions, motivations and actions of individuals that directly or indirectly affect policy formation. The network approach focuses on the analysis of the interaction of numerous actors in the political process, which is extremely relevant in the context of globalization and the growing role of civil society. It provides an opportunity to analyze the interaction between state bodies, private entities, public organizations and international actors. The ethical approach is an important tool for analyzing compliance with moral and legal standards in political governance, helps to promote the formation of fair, transparent and accountable mechanisms for making political decisions, orienting them to ensuring the common good and preserving the rights and freedoms of citizens. The involvement of ethical principles in the political process helps to strengthen trust in state institutions, prevent corrupt practices and improve interaction between the state and civil society. It is concluded that each of these approaches makes a unique contribution to a comprehensive understanding of public policy, offering different tools and perspectives for the analysis of political processes. The interaction of these approaches allows creating a multidimensional model of studying political decisions, which contributes to the formation of more effective, fair and sustainable mechanisms of public governance.

Europe 2020 and National Reforms: Economic Governance and Structural Reforms

I present a conceptual framework and analytical tools for generalizing existing theory in order to investigate imperfect choice that does not always make optimal decisions based on available information. The resulting analysis implies imperfect choice creates incentives forrule-governed behavior that is adapted only to recurrent situations (rather than adjusting optimally to all conditions), thereby producing a tendency to ignore relevant and even costlessly available information. These principles are applied to recent analysis on the foundations ofconstitutional economics. They are also applied to nonhuman evolution, and to human behavior within exchange environments in order to illustrate the pervasiveness of rule governed behavior, and to suggest a constitutional perspective about the importance of developing rules for governing peoples' ongoing economic and political decisions. I conclude by briefly discussing a basic tradeoff between reaching initial agreement over constitutional rules and the stability of future compliance to them once they are put into practical application.

Long-term limb salvage and functional outcomes for patients undergoing partial calcanectomy.

It has long been recognized that consumption behavior represents mainly joint household or family decisions rather than separate decisions of family members. Accordingly, the observational units in consumption surveys are "consumer units," that is, households in which income is largely pooled and consumption largely shared. More recent is the recognition that an individual's use of time, and particularly the allocation of time between market and nonmarket activities, is also best understood within the context of the family as a matter of interdependence with needs, activities, and characteristics of other family members. More generally, the family is viewed as an economic unit which shares consumption and allocates production at home and in the market as well as the investments in physical and human capital of its members. In this view, the behavior of the family unit implies a division of labor within it. Broadly speaking, this division of labor or "differentiation of roles" emerges because the attempts to promote family life are necessarily constrained by complementarity and substitution relations in the household production process and by comparative

The military pension is often only a part of the institution of special payments to military personnel. Due to the fact that pension provision for military personnel is a specific system and differs from general pension payments, it is necessary to understand it. This article analyzes the features of the modern pension system for military personnel of all law enforcement agencies of the Russian Federation, reflecting, on the one hand, the global trends and, on the other hand, the specifics of the Russian military pension system. The total expenditures of the federal budget (for the period 2016–2021) for the pension provision of persons who served in the military in the power structures of the state are presented. The dynamics of the total budget expenditure for a particular power structure in relation to pension payments is studied (using the example of the Ministry of Defense of the Russian Federation). The average size of pensions for seniority of pensioners of the Ministry of Defense of Russia is considered. The analysis of the growth rate of monetary allowances for military personnel, military superannuation pensions, old-age insurance pensions and the inflation rate from 2018 to 2022 was carried out. Special attention is paid to the budget allocation related to pension provision for military personnel of the Ministry of Defense of the Russian Federation and the Ministry of Internal Affairs of the Russian Federation. A comparative analysis of the dynamics of indexation of military pensions and old-age insurance pensions for the period 2013–2022 was carried out. The specifics of pension payments to military personnel, depending on the power structure of the Russian Federation, are considered. The characteristic features of calculation, payment, recalculation and assignment of pension allowance payments are presented, showing the specifics of the mechanism of formation of military pensions.

Ирина Марксовна Козина – к. с.н., профессор, заведующая кафедрой методов сбора и анализа социологической информации Национальный исследовательский университет Высшая школа экономики, Москва, Россия. Электронная почта: ikozina@hse.ru 
 Ирина Казбековна Зангиева – к. с.н., старший преподаватель кафедры методов сбора и анализа социологической информации Национальный исследовательский университет Высшая школа экономики, Москва, Россия. Электронная почта: izangieva@hse.ru
 Статья посвящена анализу действующих государственных и рыночных механизмов регулирования трудовой активности применительно к работающим пенсионерам по старости и их роли в формировании соответствующей возрастной категоризации на рынке труда. Существующая модель государственного регулирования занятости определяется нами как нейтральная к возрасту и пенсионному статусу. В этой логике все способные адаптироваться к спросу на рынке труда это делают, а неспособные – переходят в статус объектов социального обеспечения. Агенты трудового рынка обладают собственными интерпретациями границ «подходящего возраста», что проявляется в распространении практик возрастной дискриминации – «эйджизма» (иногда в прямой, но чаще в скрытой форме). Следствием этого является возрастная сегментация рынка труда, которая сопровождается качественными изменениями характера занятости работников пенсионного возраста. В наиболее уязвимом положении оказываются те, кто за время пребывания в пенсионном статусе меняет работу. Повторный выход на рынок труда в значительной степени сопряжен с рисками ухудшения условий занятости и снижения должностного и профессионального статуса. Люди пенсионного возраста не только проигрывают более молодым соискателям, но и уступают в качестве занятости ровесникам, сохранившим прежнее рабочее место. Выводы основаны на материалах исследования возрастной дискриминации на российском рынке труда, проведенного авторами в 2012–2016 гг. В исследовании использовалось сочетание количественных (анализ статистики занятости, данных репрезентативной выборки 24-й волны Российского мониторинга экономического положения и здоровья населения, контент-анализ объявлений о вакансиях) и качественных (экспертные интервью с HR-менеджерами) методов.

Through political decisions all three Scandinavian countries implemented national reforms in cancer care introducing cancer patient pathways. Though resistance from the professional community is common to top-down initiatives, we recognized positive receptions of this reform in all three countries and professionals immediately contributed in implementing the core measures. The implementation of a similar reform in three countries with a similar health care system created a unique opportunity to look for shared characteristics. Combining analytical framework of institutional theory and research on policy implementation, we identified common patterns of structuring of the initial implementation: The hierarchical processes were combined with supplementary structures located both within and outside the formal management hierarchy. Some had a permanent character while others were more project-like or even resembled social movements. These hybrid structures made it possible for actors from high up in the hierarchy to communicate directly to actors at the operational hospital level. Across the cases, we also identified structural components acting together with the traditional command-control; negotiation, consensus and counseling. However, variations in the presence of these did not seem to have significant impact on processes causing decisions and acceptance. These variations may, however, influence the long-term practice and outcome of cancer-care pathway-reform. Knowledge from our study should be considered when orchestrating future health care reforms and especially top-down politically initiated reforms.