Social Security Pension Research Articles

РЕГИОНАЛЬНЫЕ МЕХАНИЗМЫ РЕАЛИЗАЦИИ СОЦИАЛЬНО- ОБЕСПЕЧИТЕЛЬНЫХ ПРАВ В РАМКАХ СНГ В РЕТРОСПЕКТИВЕ

This article discusses topical issues of the conditions for the emergence of social security pension rights of citizens in regional interstate treaties of the CIS countries on the basis of comparative legal analysis in their retrospective. The purpose of the study involves revealing the features and content of the applied territorial and proportional principles in the implementation of social security rights by citizens of the Commonwealth countries. Problematic issues are the preservation of pension rights and the export (transfer) of pensions, the calculation of pensions that arise when a person carries out labor activities in one state, when a citizen changes his place of residence or moves from one state to another. It is noted that it is necessary to resolve legal conflicts that have arisen by determining the applicable principles for the implementation of pension rights that apply not only to citizens, but to other categories of the population. The author comes to the conclusion that a rational way out of the current situation in the context of the integration of several states is a fair distribution of responsibility according to the principle of proportional responsibility. It is proposed to coordinate the efforts of the CIS states to bring closer together migration, labor, pension and other areas of legislation, which seems to be an important problem for states due to the intensity of migration flows.

On the financial sustainability of social security pension fund in Macao: a simulation analysis

This paper constructs a simple simulation model to assess the financial sustainability of the Macao Social Security Fund (FSS). This model takes into consideration the future demographic structure of Macao and some key parameter settings of the FSS to project the balanced contribution necessary to close the financing gap. The simulation results show that the projected contribution (or balanced contribution) is affected substantially by different funding scenarios and pension benefits plan of Macao FSS, and different economic growth hypotheses of Macao. In most occasions, the balanced contribution in the next two decades is far more than the current status quo, suggesting that the financial sustainability of Macao FSS is questionable. Several measures are proposed for Macao SAR government to close the financial gap and maintain the sustainable development of the Macao FSS.

The socioeconomic epidemiology of inherited retinal diseases in Portugal

BackgroundInherited retinal diseases (IRDs) are a group of rare degenerative disorders of the retina that can lead to blindness from birth to late middle age. Knowing the target population and its resources is essential to better plan support measures. The aim of this study was to evaluate the socioeconomic characteristics of regions in Portugal where IRD patients reside to inform the planning of vision aid and rehabilitation intervention measures.ResultsThis study included 1082 patients from 973 families, aged 3 to 92 years, with a mean age of 44.8 ± 18.1 years. Patients living with an IRD were identified in 190 of the 308 municipalities. According to this study, the estimated IRD prevalence in Portugal was 10.4 per 100,000 inhabitants, and by municipalities, it ranged from 0 to 131.2 per 100,000 inhabitants. Overall, regions with a higher prevalence of IRD have a lower population density (r=-0.371, p < 0.001), a higher illiteracy rate (r = 0.404, p < 0.001) and an overall older population (r = 0.475, p < 0.001). Additionally, there is a lower proportion of doctor per capita (r = 0.350, p < 0.001), higher social security pensions beneficiaries (r = 0.439, p < 0.001), worse water quality for human consumption (r=-0.194, p = 0.008), fewer audiences at the cinema (r=-0.315, p < 0.001) and lower proportion of foreign guests in tourist accommodations (r=-0.287, p < 0.001).ConclusionThe number of identified patients with IRD varied between regions. Using data from national statistics (PORDATA), we observed differences in socioeconomic characteristics between regions. Multiple targeted aid strategies can be developed to ensure that all IRD patients are granted full clinical and socioeconomic support.

Sosyal Güvenlik Aylıklarında Alt Sınır Uygulaması

Çalışmada, sosyal güvenlik sisteminin iki bileşeni olan sosyal sigortalar ile sosyal yardımlar arasındaki evrilme; yaşlılık aylıklarında alt sınır uygulamasının gelişimi bağlamında değerlendirilecektir. Primli rejim olarak da adlandırılan sosyal sigortalar kapsamında yaşlılık aylığı olarak sağlanan aylıklar özelinde incelemenin yapıldığı çalışmada, aylık alt sınırları tarihsel süreç içinde dönemsel değişimler bağlamında irdelenecektir. Bu bağlamda ilgili dönem aylıkları üç değişkenle karşılaştırılarak, sosyal transferlerde alt sınır uygulamasının tarihsel süreçte geçirdiği değişim incelenecektir. Bu kapsamda yıllar itibariyle ilgili dönem aylık alt sınırlarının cari değerleri; sigorta primine esas taban, asgari ücret ve kişi başına düşen milli gelirin cari değerleriyle karşılaştırılacaktır. Böylece Türk sosyal güvenlik sisteminin 70 yılı aşkın deneyimlemesindeki alt sınır uygulamasının gelişimi ve değişimi irdelenecektir. 2000 yılına kadar ülkenin ekonomik durumu ve gelişimine bağlı olarak gerçekleşen alt sınır uygulaması, bu dönemden itibaren belirgin bir değişime uğramıştır. Bu keskin değişim, 2019 yılından itibaren götürü olarak getirilen ikinci bir alt sınırla belirginleşmiştir. Son beş yıllık yeni döneme ilişkin ikinci alt sınır uygulaması, 2000 yılında yürürlüğe konulan alt sınırın, sigortalılar ve hak sahiplerinin sosyal güvenliğini sağlamada yetersiz kaldığını göstermektedir. İkinci alt sınır uygulaması; sistemin özünü boşaltan, hak temelli yaklaşımdan uzak, “lütuf”a bağlı bir tür bağış niteliği taşımaktadır. Görünürde bireylerin yararına olduğu yanılsamasını içeren ikinci alt sınır uygulaması, klasik sosyal güvenlik sisteminin işlevlerini yitirmesine yol açmaktadır. İkinci alt sınır uygulaması, özü itibariyle sosyal sigortaların sosyal yardımla ikamesi eğilimi taşıdığından, klasik sistemi yeniden tartışılır hale getirmiştir.

Social security pension and the effect on household saving

AbstractIn this paper, we examine the substitution between pension wealth and household saving. To identify the effect of reductions in social security pension wealth on household saving, we utilize variations in changes in social security pension wealth induced by Norway's 2011 reform across different cohorts, time periods, and sectors. Our study focuses on the saving behaviors of individuals between the ages of 57 and 61, and we find that the annual saving rate increased by around 1.4 percentage points after the reform. When considering the overall life‐cycle changes in household saving, this corresponds to a crowd‐out effect of about 50 percent of the total loss in pension wealth.

A Study On Aasara Pension Scheme Impact On Poorer Economic Development

Even 70 years of independences India still the deprived people life style not at all changed and they are still suffering with economic in-equality in the society. A lot of schemes introduced by Central / State governments to improve the situation. The Government of Telangana as a part of poverty alleviation strategy has prioritized social security programs for vulnerable sections of society to ensure that there are no deprived communities. In this context Government of Telangana introduced ‘Aasara Pension Schemes a safety net strategy for the welfare in November 2014 to safeguard several sections of the society.ln the past, social security pensions provided were meager and, barely sufficient to cover the basic minimum requirements of the needy. The idea of social security, including pensions, originates from the notion that everyone must have protection against vulnerability and deprivation but in practice, it has come to be linked to job security, whether one has a job in the formal or the informal sector. Under the Directive Principles Article 41, the State is expected to “within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement and in other cases of undeserved want.

Fair crack of the whip? The distribution of augmented wealth in Australia from 2002 to 2018

The omission of pension wealth potentially distorts the international comparison of wealth distributions. Private pension wealth is often included in households’ wealth portfolios, while public pension claims are not. Augmented wealth, the sum of net worth and pension wealth, resolves this limitation by including the present value of social security pension wealth. This article provides a detailed analysis of augmented wealth in Australia between 2002 and 2018, capturing the establishment of the compulsory private pension scheme, Superannuation, which was introduced in 1992. Augmented wealth is slightly less equally distributed in Australia than in Germany or Switzerland but more equal than in the United States. The article also explores the relationship between Superannuation dissaving rates and the means-tested public pension scheme, Age Pension, and its distributional implications.

Household Economics, Information Sources and Annuity Choices: Annuitisation Preferences of Members of the Slovak Private Pension Pillar

This research uses representative survey data to elicit the annuitisation preferences of members of the Slovak-funded private pension pillar. The research explores the impact of socioeconomic and sociodemographic variables, as well as some exogenous factors on annuity choices. The following choices are analysed: (i) taking an annuity upon retirement; (ii) delaying the uptake of an annuity and accumulating savings beyond the official age of retirement; and (iii) leaving accumulated wealth to heirs (bequest motive). The paper provides some original contributions. Firstly, it relates annuity choices to intrafamily risk sharing. Attention is paid to household structure, income levels, and the presence of dependent children. Secondly, the importance of diverse information resources on the formation of annuity preferences is examined. We found that professional advice provided by financial institutions and government bodies was associated with higher probabilities of annuity uptake. A disproportional reliance on informal channels may explain the higher preference towards bequest motives in rural areas. Thirdly, annuity choices are studied in relation to alternative sources of income in old age. A combination of social security pensions and bequest-sharing arrangements may offset the need for the annuitisation of pension wealth.

Social Pension and Labor Participation among Elderly Urban Residents in China

China is facing the problem of an aging population. So, the impact of social pension income on labor supply is of great importance for the development of the society's economy.This article uses data from the 2017 China Household Finance Survey (CHFS) and employs probit regression to investigate the effect of pension income on the labor force participation decision of urban elderly people. The regression analysis results indicate that social security pension income has a significant negative effect on the labor force participation decision.

Valuing Losses of Pension Benefits

Valuing Losses of Pension Benefits

Social innovation agent: human rights management for social security transformation

This article shows the practical application of social innovation agents for being able to generate relational capital for the management of an alliance for social security human rights defenders. Our objective is to promote a collaborative work platform from the quadruple helix model to visualize and raise awareness among key actors and stakeholders to transform the social security pensions of public servants through socially innovative proposals.

Using the pension multiple to measure retirement outcomes

This paper presents a simple and intuitive measure of retirement income adequacy: the Pension Multiple which captures and quantifies the level of income for each future retirement year as a multiple of the government-provided social security pension. This Pension Multiple at each future retirement year is then mortality-weighted to produce an average Pension Multiple for the entire retirement. An expected shortfall from this average Pension Multiple is introduced to measure the potential shortfall at each future retirement year from the average Pension Multiple. A single measure of retirement income and potential shortfall is then calculated as the averaged Pension Multiple minus the averaged expected shortfall, which is called the adjusted Pension Multiple. Finally, any residual estate is also included as part of the retirement income adequacy measure. The Pension Multiple and estate residue can be calculated by any forecast model for future retirement income. In this paper, we use a robust stochastic forecasting model to demonstrate the effectiveness of using the Pension Multiple to measure and compare different retirement income strategies.

Optimal long-term Tier 1 employee pension management with an application to Chinese urban areas

We formulate a stochastic optimization problem from the perspective of an investment committee responsible for Tier 1 social security pension policies and whose decisions are bound to have relevant economic and social consequences. The adopted modelling approach combines canonical multistage stochastic programming (MSP) with dynamic stochastic control (DSC): the first applies to the short-medium term, the second to the long-term. Through the combined framework, we are able to span a long planning horizon without jeopardizing the accuracy of scenario tree based medium-term planning. We apply this methodology to the Chinese pension system, which relies on two large reference areas for rural and urban populations. In this article, we concentrate on the ever-growing urban public pension system, which is facing significant challenges due to a declining workforce and a rapidly ageing population. This welfare area, originally conceived as a pay-as-you-go (PAYG) system, has undergone several recent reforms to enhance its long-term sustainability and reduce the interventions of the central government required to improve its funding condition. Among those relevant in our setting, is the reduction of policy constraints that until 2015 severely limited the possibility to invest in assets other than traditional, locally traded, long-term fixed income securities. We propose an optimization model in which the decisions of the investment management aim at significantly reducing central government interventions as a last resort liquidity provider and progressively improving the system funding condition. A rich set of computational and economic evidence is presented to validate the methodology and clarify its potential benefits to pension system efficiency.

Longer life and stagnated retirement age: Sri Lankan perspectives

Demographic ageing, resulting from rapidly increasing life expectancy and decreasing birth rate, raises a number of challenges. Many countries in the world are raising the age of retirement eligibility because of the significant rise in life expectancy. Although Sri Lankan demographic environment also demonstrates an increase of life expectancy and ageing, the Government has not made comparable increases in the age of retirement. In this backdrop, this paper using both primary and secondary data, examines the timely debate of increasing the mandatory retirement age of the country. The government officials in Sri Lanka can work up to the age of 60 years without seeking extension and at the age of 60 years retirement is compulsory. Recently the government has proposed to extend the mandatory retirement age of them 63 years. At the same time age relating to contributory schemes such as, farmers’ pension and social security pension, have also been extended from 60 to 63 years. The number of government pensioners is increasing significantly, putting more pressure on the recurrent expenditure of the government. Empirical data reveal that the Sri Lankans seems healthier in terms of life expectancy, healthy life expectancy and HDI. Compared to other south Asian countries with similar heath status Sri Lanka enjoys a long retirement period providing the fact that Sri Lankans are capable of working more productive years after retirement age. In fact, as of 2012, male and female retiree at age 60 could survive for another 17 and 21 years respectively. Also increasing the mandatory retirement age will be a partial solution to the anticipated labour shortages in near future arising due to rapid ageing process. However, the rise in longevity is exerting pressure on public finances with increases in pension and elderly care expenses. Hence, it seems timely to consider increasing the mandatory retirement age of the government officials, after assessing the merits and demerits of such measure.

Financing the social security pension systems in Japan

Financing the social security pension systems in Japan

A Proposed Methodology for Modelling the Solvency of a National Pension Scheme

The main aim of this study is to fit a model for predicting pension liability. The study proposed a stochastic population model to determine the status of a pension scheme. By categorizing the members of the Social Security and National Insurance Trust (SSNIT) pension scheme of Ghana into five groups, the birth and death process with emigration and the pure death process coupled with assumption of the Yule’s process, were combined to successfully formulate a model for forecasting the surplus of SSNIT to be used as a proxy for assessing the solvency status of the scheme. The reliability of the proposed model was corroborated by very high coverage probabilities of the estimates of expected surpluses produced. The study demonstrated how easy it is to use the proposed model to carry out sensitivity analysis which allows the exploration of various scenarios leading to formulation and implementation of policies to enhance the solvency of the scheme. One major advantage of the proposed model is that, it uses more information (variables) compared to others proposed elsewhere for the same purpose. This contributes to the precision of estimates from the model. A key finding of the study is that SSNIT would have still been solvent had she increased pension by 50%.&#x0D;

SOEP-RV: Linking German Socio-Economic Panel Data to Pension Records

Abstract The aim of the project SOEP-RV is to link data from participants in the German Socio-Economic Panel (SOEP) survey to their individual Deutsche Rentenversicherung (German Pension Insurance) records. For all SOEP respondents who give explicit consent to record linkage, SOEP-RV creates a linked dataset that combines the comprehensive multi-topic SOEP data with detailed cross-sectional and longitudinal data on social security pension records covering the individual’s entire insurance history. This article provides an overview of the record linkage project, highlights potentials for analysis of the linked data, compares key SOEP and pension insurance variables, and suggests a re-weighting procedure that corrects for selectivity. It concludes with details on the process of obtaining the data for scientific use.

Demographic changes and savings behavior: the experience of a developing country

PurposeThis paper aims to disclose the savings behavior of Iran's economy in the context of demographic transition.Design/methodology/approachEmploying a version of Ramsey-Cass-Koopmans growth model, this paper benefits from a broad range of data and variables which are mainly taken from the Central Bank of Iran's database. The study uses actual and calculated data to produce analogous simulated data. The data cover the 1970–2015 period. This long period provides an opportunity to simulate more valid time series. It is worth noting that due to the severe economic sanctions imposed on the Iran's economy, particularly after 2017, some most recent data have been obliterated from the sample.FindingsThe results, stemming from the simulated model, hint that; firstly, the population variable is a notable determinant of the savings rate. Secondly, the effects of a slump in the population growth rate would attenuate the savings level significantly. Thirdly, other pragmatic steps could be taken to redress the fallout of the demographic changes.Research limitations/implicationsThere are some limitations in providing broad data related to economic sectors in Iran. The savings data, for instance, are available as an aggregated time series, and if the authors had wide data of household level, they would have been able to build more detail-based model. Similar to this issue of lack of households’ income-based data, some measures such as high or low levels as well as detailed demographic data could be helpful in sophisticated household level resulting. In addition, the complex relationship between the government and social security (pension) funds, in terms of financing part of government's budget deficit by these funds, thwarts a typical researcher in using comprehensive and transparent government expenditure data in their research. In other words, the possible positive or negative role of the funds, as a related issue to the demographic changes, cannot simply be determined in the model. It might be possible after necessary corrections are carried out in the mentioned relations.Originality/valueIn fact, the problem statement in this paper is to discern how the population aging can impact the saving rates on the one hand, and to what extent its repercussion can be modified by the other theoretical-based determinants on the other. In fact, the underlying argument of the present research arises from the stylized facts concerning prognosticates of the future evolutions of the world's population. To that end, the study will use Iran's economic and demographic data.

Pooling mortality risk in Eurozone state pension liabilities: An application of a Bayesian coherent multi-population cohort-based mortality model

We design a coherent cohort-based multi-population mortality model, calibrate it to national mortality rates in the Eurozone using Human Mortality Database data, and use it to project developments in national mortality across the Eurozone. Combining this model with a stylized model of social security pensions in each country allows us to calculate the pension mortality risk in these systems and estimate the benefits of pooling it across the Eurozone. We examine three risk pools, which are all actuarially fair, but differ in how undiversifiable risk is allocated across countries. The first naïve approach allocates undiversifiable risk in proportion to GDP, a second according to a CAPM-based measure of the undiversifiable risk each country contributes to the pool and a third ensures that the aggregate benefits of diversification are shared equitably across countries using a measure we adopt. In all cases, the benefits of risk pooling increase over time as mortality uncertainty accumulates, but fall over time as cross-country correlation increases due to the long-term dominance of the mortality trend, which by assumption is shared between countries. The peak benefit occurs around 2050, with an aggregate reduction in the standard deviation of pension expenditures of around 0.11% of GDP, or 3% of pension expenditure at the 99th percentile. We find that allocating undiversifiable risk proportional to GDP does not ensure an efficient allocation of undiversifiable risk across countries, given that different countries have markedly different pension mortality risk due to different pension system generosities as well as different mortality correlation with the Eurozone. Based on our results we propose a contract design that surmounts most of the moral hazard risks created by the pool, and suggest directions for future research.

The Expectation for Risk-Sharing Cycle: Theoretical Model and Global Implementation

In this paper, we offer an explanation to pension systems cyclical reforms, based on Central East Europe (CEE) countries experience over the last three decades. We claim that in the transition to funded pension design, the government not only transfers longevity and fiscal risks to the individualbut also absorbs risks transferred from the public, where each market actor transfers undiversifiable risks to the other. This hidden risk path that has not been discussed yet in the literature, stemmed from the public expectation to risk premium or adequate old age benefits that evolves to political pressure. The outcomes of this risk path realized in financial transfers, such as social security, means-tested and minimum pension guarantee. Consequently, funded pension designs naturally converge to a new landscape paradigm of risk sharing, including intergenerational and intra-generational play. Financial crises such as the recent COVID-19 pandemic foster the convergence process.