Pension Problem Research Articles

The Nigerian public pension scheme: The need for reform

This paper analyses the Nigerian public pension problems from their origins. It argues that the current public pension scheme in Nigeria is unsustainable. This is so because the sheer size of public sector bureaucracy in Nigeria makes it difficult for the government to meet the basic salary needs of its institutions, much less meet the pensions needs of those who have retired from these institutions. It also unjustifiably favours Nigerians who belong to the public service to the detriment of the majority of the people who work in the private sector. Finally, it inhibits the ability of the government to undertake its other developmental duties, such as the provision of developmental infrastructure and other capital projects. Without such capital investments, the potential for economic development and growth in the future will be greatly impeded. There is therefore a need for reform of the current pension system in Nigeria.

Is the European pension problem a tax problem?

Is the European pension problem a tax problem?

Zur Rentenproblematik: Lösungswege und Reformvorschläge

Abstract This economic policy forum is assigned to the problems of pensions. Eckart Bomsdorf remarks that the pension scheme system in Germany will be stretched to its limit in the future. Like in many other highly developed countries, the reason for this is the demographic development. The number of people who receive pensions is increasing, while the number of contributors is stagnating or even decreasing. The latest pension reforms try to counteract this development. They will work until 2010, after this, however, these measures will not be sufficient to secure Germany’s pension system. Some additional measures can make the statutory pension system in Germany fit for the future. Increasing the retirement age and a new pension formula, which takes the demographic development into consideration sufficiently, are of particular importance. In his contribution, Axel Börsch-Supan states that after the Pension Reform 2000 has successfully passed both chambers of the German parliament, the German pension system still rests mainly on an expanding pay-as-you-go financing mechanism. He argues that the long-run stabilization of the German pension system will need further reform steps with three main elements: (1) A reformed pay-as-you-go pillar which is actuarially fair, features a transparent national account set-up, and freezes contribution rates; (2) A deeper second funded pillar which is based on US 401(k)-style grouped accounts that finances the impending aging burden; (3) An internally consistent regulatory framework for the German capital market including uniform taxation of all retirement savings according to the EET principle. The topics of Friedrich Breyers contribution are often neglected elements of the pension reform: dependents relief and pension splitting within the social security system. The reform introduces the choice of splitting, where each spouse receives half of the total pension claims, which both have acquired during the marriage. The author asks whether the method of income tax splitting should be applied to the health insurance as well as the pension system in order to strengthen the equivalence principle. It is shown that only with mandatory splitting in the pension system the preferential treatment of married couples as opposed to singles would be eliminated.

Are You Sitting Comfortably Then We'll Begin: Three Gripping Policy Stories About Pension Reform

Throughout the 1990s, the issue of how to secure pension systems in the face of demographic change has been high on policy agendas in many countries. Yet, reforming pension systems has, more often than not, proved to be a particularly difficult and awkward political undertaking. The following article explores one of the many possible reasons why pension reform in Europe has been so arduous for the would-be reformers. After briefly reviewing some basic concepts and issues involved in reforming social security systems, the paper concentrates on how policy actors at international level have constructed the pension policy issue. Specifically, the paper reviews three pension reform policy stories. Each of the stories starts from differing assumptions, produces contradictory prognoses of the pension problem, and prescribes diverging policy solutions. Significantly, each policy story provides a normative vision of a 'good' pension reform. Thus, policy stories provide templates for producing plausible policy arguments in politiucal debates: yet, thay do so by weaving scientific knowledge, 'objective' fact and normative convictions about social welfare systems into a seamless rhetorical fabric. The final section, then, looks at the seams by analysing the more contentious assumptions of the different policy arguments.

The dynamics of retirement saving — theory and reality

Pension problems and reforms are in the foreground of public interest and political action in many countries, yet economic theory offers inadequate support for finding viable solutions, because it is heavily loaded with simplifying concepts and unrealistic assumptions. These concepts and assumptions are briefly summarized in Chapter 1, while a generalized framework based on them is presented in Chapter 2. The basic stationary assumption is then relaxed in Chapter 3 what results in the conclusion that a profound, not just technical, but conceptual innovation is required. Chapter 4 outlines a few major issues and concepts for a more realistic pension economics. A summary is given in Chapter 5.

Pension Reform in the Baltics, Russia, and Other Countries of the Former Soviet Union (Bro)

Despite their increasing fiscal burden, the public pension systems of BRO countries are failing to provide adequate social protection. Although there is a broad consensus about the need for pension reforms, BRO countries are debating whether to embark on systemic reforms or whether to correct the distortions in their pay-as-you-go (PAYG) pension systems. The paper reviews the measures taken by BRO countries during the transition period to address their pension problems and examines the options for further reform. It makes a strong case for a gradual reform approach aimed at establishing a multi-pillar system over the long run, but initially focused on implementation of high-quality reforms of the PAYG system.

Pension politics in France: Patterns of co‐operation and conflict in two recent reforms

This article looks at the political side of pension reform in France. Policy makers are caught between two contrasting pressures: increasing expenditure on the one hand, and strong public support for existing arrangements on the other. In the last few years, the government has attempted to deal with the issue on two occasions, with rather different results. First, in 1993 a pension reform was successfully adopted after negotiations with the unions. Later, in 1995 the government had to abandon plans for a second reform as a result of a massive union‐led protest movement. The article argues that the different fortunes of the two reforms are related to changes in the configuration of power between the two events. It also claims that the popularity of current pension arrangements constitutes a strong pressure on the government to adopt a negotiated solution to the pension problem.

Les socialistes français et la question des retraites (1880-1914)

French socialists and the problem of pensions (1880-1914), Bruno Dumons, Gilles Pollet. The article examines the place and strength of the problem of workers' retirement, starting from the origins, among French socialists, closely linked to the conquest of free time and rest. The problem of pensions was important in terms of political culture as it forced socialism to reconcile its dreams of emancipation with the State's management role in a modern society.

Age structure of the population in Belgium and social security

The effects of demographic aging and of various socioeconomic factors on the social security system in Belgium are explored. "Special attention is given to the impact of the ageing of the population on the pension problem. Based on a simple formula a series of percentages of taxation have been calculated as a function of shifts in the proportion of retired vs. active population and in the proportion of the average income vs. the average amount of pension. One of the conclusions is that the progressive ageing of the population will become the most significant factor in the growth of social expenditures."

The problem of women's pensions

The problem of women's pensions

Pension problems and their solution

1 Whichever way you look at it, pensions are a problem. The Policy Studies Institute has expressed concern at the increased burden of State pensions fifty years from now when the number of pensioners increases in relation to the number of contributors. The Institute for Fiscal Studies too is anxious for the same reason and makes the criticism that insufficient consideration was given to the long-term cost when the State scheme was extended in 1978 so as to provide an additional earnings-related pension. The report of the Scott Committee has reduced but not wholly eliminated controversy on the extra value of index-linked public service pensions compared with the pensions commonly provided in the private sector. Employers, on whom the financial burden finally rests, are hard pressed to finance the accrued pension rights of their employees in final salary pension schemes and are unable to make the additional contribution necessary to preserve the values of the pensions and deferred pensions of former employees.

Equity between the Sexes: The Pension Problem

Equity between the Sexes: The Pension Problem

Pension Aspects of Takeovers and Mergers.

Over the past few years the Pension Managers of most large groups of companies, and some not so large, have had to grapple with the pension complications which have arisen when their holding company sells or acquires another company. For example, the pension costs of an acquisition may not have been adequately considered, possibly because the Pension Manager had not been one of the limited number of principals who were involved in the negotiations leading up to the acquisition. Even if the Pension Manager has been involved in an advisory capacity during the negotiations, formidable problems may subsequently arise in integrating the previous pension benefits of the new employees with the benefits of existing employees.Detailed consideration of the financial condition of the pension scheme of the company which is taken over has been the exception rather than the rule and many companies have found that a seemingly straightforward undertaking to ‘safeguard’ employees' pension rights involves both higher than anticipated pension costs and problems of comparability between similar grades of employees at different locations within the group.

The Growth and Development of Occupational Pension Funds

This paper gives an account of the growth and impact of pension funds in the United Kingdom, describing the marked growth in scheme membership and in the influence and strength of the pension funds. The consequences of that growth are discussed and attention is drawn to the problems of funding pensions in a climate of uncertainty and inflation.

Careers: Q&A on pensions: Institute experts answer members' questions concerning the new U.S. pension law and its effect on engineers

On September 1, 1974, President Ford signed into law a bill called the Employee Retirement Income Security Act (ERISA '74), popularly known as the Pension Reform Bill. IEEE vigorously supported this bill and took an active role in furthering various amendments specifically tailored to assist the employed engineer. Many members of the Institute are wondering what they should and can do to take full advantage of ERISA '74, and what IEEE is doing to solve their pension problems. Some of the questions asked by IEEE members about the current situation are covered in this article.

The Literature of Retirement

MEN AND WOMEN about to retire are not always fortunate in having lectures on retirement available in their locality as, for example, Londoners have in the twelve‐week courses at Morley College (61 Westminster Bridge Road, SE1), where the Greater London Council, the Inner London Education Authority, Shell, and other big employers allow their staff afternoons off to hear specialists speak on pension problems, taxation, health, part‐time work, psychological and other problems of retirement.

Solving Overseas Pension Problems

Solving Overseas Pension Problems

Accrual Accounting for Employers' Pension Costs

ARS No. 8 recommends the use of accrual accounting for pension costs by the employer.1 With the pension problem, the concrete meaning of ''accrual lies in the distinction between (a) the manner in which the periodic charge to operations is determined, and (b) the manner in which the obligations under the pension plan are funded. To determine the charge to operations is essentially an accounting problem, whereas the pattern of is primarily a financial one. Both the accounting and financial problems involve actuarial considerations. Four cases are presented below to describe the difference between factors which determine the charge and those which determine how the pension obligation will be discharged. The first three illustrate the use of a single method of determining the charge, but three different methods of funding the pension obligation. In the fourth case a variation on the method of determining the charge to operations is introduced. Our use of particular methods in these cases is not intended as a recommendation for their use in any or all situations. The essential point is that, for any given method of determining charges to operations, there are two, three, or four ways of arranging for the of a pension obligation. The illustration could be extended to include other acceptable patterns for determining the charge. In each case, however, the same point would emerge-the method of determining the charge is a problem

Staff Salaries in the UN Family

The salaries of international officials have again been under discussion in the General Assembly and, as the discussion is to continue during the twelfth session, this would seem to be an appropriate moment to review the situation. The eleventh Assembly had before it the report of a special committee requested to undertake “a comprehensive review of the United Nations salary, allowance and benefits system”. Although this report was praised in the debate, the Staff Council expressed the view that its “principal conclusions and recommendations are profoundly disappointing”. The committee, known as the Salary Review Committee (SRC), did not confine itself to salaries and allowances, but quite naturally dealt also with such questions as grading, recruitment and, to some extent, with pensions. Since Dr. R. N. Swift, in a recent article on personnel problems in this journal, has devoted sections to recruitment and salaries in the UN, I do not propose to consider recruitment policies, but to discuss the inter-related problems of salaries, grading and pensions in the wider setting of the whole UN family of international organizations.

Pension Funds and Problems under California Community Property Laws

Pension Funds and Problems under California Community Property Laws