State Pension Research Articles

Safety Net Spending on Children and the Sources of Household Income Across U.S. States, 1997-2016.

High levels of poverty and economic precarity in the United States relative to other countries have led to academic and policy debates about whether welfare state investments accomplish what they are intended to. Although social safety net spending clearly has antipoverty effects at the national level, there is scant evidence on the "resource pathway" presumed to underlie the effects of the local welfare state on families with children. Which types of public investments have especially contributed to the total resources of households with children? Understanding this question at the state level is important, given dramatic variation in states' safety net spending on children and the rise of federalism, which increases state autonomy in designing and administering social programs. Using annual data from the 1997-2016 State-by-State Spending on Kids Dataset linked to data from the Census Bureau's Annual Social and Economic Supplement to the Current Population Survey, we examine the relationship between transfer spending in states and household income sources. Findings suggest that government transfers raise the total income of households with the lowest income and educational levels and that transfer income among these households is more multidimensional than among higher resource households. Further, analyses using variation within and across states demonstrate that state-level spending in each area is associated with an increase in corresponding transfer income among non-college-educated households and those in the bottom half of the income distribution; such spending is associated with no increase (or a decrease) in transfer income among college-educated households and those in the top quarter of the income distribution. These results suggest that increases in state-level spending disproportionately benefit the budgets of households with the lowest resources and might be a promising means to reduce resource gaps between households.

Pensions and protestants: or why everything in retirement can’t be optimized

Abstract A common narrative among insurance actuaries and business economists is that national or regional pension systems can be finetuned, optimized, and improved simply by tinkering with demographic and financial parameters; all within the context of the “right” mathematical model. Indeed, recent papers in the actuarial literature have offered technical fixes around savings rates, retirement ages, decumulation strategies as well as more refined mortality and interest rate models. But alas, not everything in the world of pensions and retirement can be optimized, in particular as it relates to the history, background culture, or religion of the underlying population. This paper documents a statistically significant relationship between a region’s pension plan “health status” and the fraction of the region’s population identifying as Protestant Christians (PC). We begin the analysis at the national level using a well-known pension quality index and then obtain similar results for the actuarial funded status of U.S. state pension plans. Overall, this work is within the sphere of recent literature that indicates historical religious beliefs, values, and culture matter for financial economic outcomes; a factor which obviously can’t be optimized within a mathematical Hamilton–Jacobi–Bellman (HJB) equation. In other words, some things in retirement are truly beyond control.

Designing Collective Housing for Older People: Proposals from the Dutch Welfare State by Pot & Pot-Keegstra.

This scientific paper examines how the Dutch architects Jacoba Froukje Pot-Keegstra (1908-1997) and her husband Johan Willem Hindrik Cornelis Pot (1909-1972) designed for older people. In the decades following World War II, with the advent of the welfare state, care for older people became a priority of new social policy in the Netherlands. In 1956, the state pensions were launched (Algemene Ouderdomswet), and in 1963, the Dutch Ministry of Housing and Spatial Planning (Volkshuisvesting en Ruimtelijke Ordening) introduced the Older People's Homes Act (Wet op de Bejaardenoorden). At the time, there was a growing demand for housing for older people, and this aimed to facilitate their large-scale production while meeting the highest possible standards. Through some of their most significant projects, this paper explores the aspects that Pot & Pot-Keegstra added to the design of collective housing to make life more convenient for old people beyond the "Regulations and Guidelines" (Voorschriften en Wenken) introduced in 1965. The methodology of this paper consists mainly of archival research in the National Collection for Dutch Architecture and Urban Planning at the Nieuwe Instituut in Rotterdam, a review of scientific and non-scientific literature, and plan analysis. It is worth noting that Pot-Keegstra was the first female architect by the Academy of Architecture in Amsterdam in 1936, and she was one of the very first women to run an office with her husband. Among the analysed projects designed by Pot & Pot-Keegstra for older people is the first high-rise nursing home, the Osdorperhof in Amsterdam (1962-1968). The General Act on Exceptional Medical Expenses adopted in 1968 (Algemene Wet Bijzondere Ziektekosten) made the proliferation of nursing homes possible. The Osdorperhof, with medically oriented care, was a forerunner of the nursing home boom that began in the late 1960s. The design of this project facilitated a new way of taking care of older people, as this collective housing enabled them to live relatively independently and to have the care they needed.

ANALYSIS OF FISCAL POLICY IN MANAGING THE STATE BUDGET IN INDONESIA PRE AND POST COVID-19

The purpose of this study is to analyze fiscal policy in the management of the State Budget in Indonesia. The method used is descriptive analysis, which means explaining and describing both oral and written forms derived from literature studies. The results of the study show that the fiscal policy used in Indonesia is an expansionary fiscal policy marked by a state budget that is classified as a deficit. Then, to increase state revenue, the government began to export downstream commodities that had high added value. In order to minimize state spending, the government implements zero-based budgeting. This can be said to be able to increase the value of the state budget in its management.

Public pension contract minimalism

AbstractThe national pension debt and COVID crises have collided. Post‐pandemic economic decline has escalated existing financial strains on state and local pension plans, impacting workers and the public welfare. With unfunded obligations exceeding one trillion dollars, many of these plans are in jeopardy. But the movement to reform government pension contracts has yet to adopt an anchoring idea, leaving judicial decisions in disarray and policymakers without guidance about how to shore up troubled retirement systems. The crux of the problem is the many meanings of contract under state and US Contract Clauses that prevent pension reform. This Essay endorses a promising path forward—contract minimalism. “Contract minimalism” concentrates on the duration of government pension contracts. It posits that public and private employment law should be treated the same. Like its private law counterpart, public sector employment at‐will ought to consist of a daily contract interval. A contract‐a‐day concept entitles employers to change the plan prospectively, with employees receiving a proportionate share of benefits for work performed. Just as several agreements safeguard salaries for labor, they should also mirror the protection afforded to deferred benefits like pensions. Contract minimalism additionally puts public and private sector employers on the same legal footing as to the authority to change pension plan terms. Thus, it aligns public pension benefits with overlapping fields of law, placing them on a firm conceptual foundation. The minimalist approach also has the advantage over approaches that are insufficiently attentive to scarce government resources or employee old‐age security. By protecting pension benefits early and incrementally, it advances a middle path with fairer, more coherent results. In the present post‐pandemic era of hard choices, minimalism provides an equilibrium between the over‐ and under‐protection of pension benefits.

Analysis of The Influence of State Income and State Expenditure on Tax Revenue in Indonesia 2001-2023 From the Perspective of Islamic Economics

Taxes are one of the sources of state revenue for financing state expenditure. When tax revenue decline, governments often face an urgent need to maintain social and economic stability. In Indonesia in 2020 the ratio of state revenue from taxes fell by 1.5% from the previous year. So if fluctuations in tax revenue and an increase in state spending lead to a high budget deficit, and the government needs to find others sources of financing, such as loans to cover the financing shortfall. The type of research used is quantitative. The method used in this study is the Error Correction Model (ECM). The data used is secondary data published by the Ministry of Finance with the type of time series data in the year of observation, namely 2001-2023 in the State of Indonesia. Testing was carried out with the help of the Eviews 10 software application. The results of this study shows that only the state revenue variable has a significant effect on tax revenue in the long term and short term, while the state expenditure variable does not have a significant effect on tax revenue in the long term and in the short term.

Social and policy characteristics associated with injurious shootings by police in US counties: A multilevel analysis, 2015–2020

From 2015 to 2020, shootings by police injured or killed 1769 people annually in the United States, disproportionately harming members of minoritized groups. Prior studies of the structural determinants of these inequities have largely examined state-level aggregations and fatal outcomes. This study aimed to: 1) describe state and county variation in fatal and nonfatal injurious shootings by police, and 2) analyze the relationship between state and county context and differences in county rates of injurious shootings by police. Injury data were developed from manual review of incidents listed in the Gun Violence Archive, then aggregated by county-year. Covariate selection was informed by theories of police use of force and the Social Basis of Disparities in Health conceptual framework. Fixed effects negative binomial regression models were estimated, nesting years within counties and states. Analyses controlled for county population, local reporting presence, and multiple measures of social conflict and community violence. From 2015 to 2020, 56% of counties experienced injurious shootings by police. Higher county rates of victimization were associated with greater state spending on police relative to health, county income inequality, prevalence of unmet substance use disorder needs, higher county firearm availability, and permitless concealed carry statutes. Firearm purchaser licensing polices were associated with lower incidence of injurious shootings by police. To prevent patterns of injurious shootings by police, policymakers should consider addressing undermanaged substance use disorder through crisis fund allocation and use, adopting stronger firearm licensing systems, and evaluating local strategies to combat inequities and strengthen non-policing responses to social needs.

Have later state pensions made people less connected? The effects of older female pension ages in England on social capital

Abstract Many countries have increased their state pension ages (SPAs) to offset demographic ageing and to increase numbers of older people remaining in paid work. Most research attention has focused on the economic outcomes whereas little attention has been paid to impacts on social capital, including rates of volunteering and care-giving. Prior research suggests that these are sensitive to retirement decisions. Using nine waves of individual longitudinal data from the English Longitudinal Study of Ageing, this study examines the effects of increased SPA on volunteering, group membership and providing care. Our results show that higher SPAs have a negative impact on rates of volunteering and providing care, particularly for women in couples. Single women are not affected, and there are not significant effects on group membership and childcare provision. The more work-like aspects of social capital are affected by the increased SPA.

Usage of intellectual analysis of ecological-economic data in the pension insurance system and for forecasting expenditures on social protection and social security

The paper is devoted to an actual scientific and applied problem – the development of methodology for applying mathematical models and data mining methods for actuarial calculations in mandatory state pension insurance system. The paper describes methodology for modeling changes in the number of pension recipients taking into account the impact of environmental factors, in particular air pollution. The basis of the proposed method is a multi-model approach, characterized by combination of data mining and probabilistic models in the form of Bayesian network, which are appropriate in conditions of statistical, parametric and structural uncertainty.The proposed approach describes the change in number of pension recipients, in particular for disability and breadwinner loss, under influence of air pollution from organic and inorganic compounds. The scientific novelty of the paper is in the use of an ensemble of models including probabilistic and statistical models in the form of Bayesian network and regression models, in the system of actuarial calculations of mandatory state pension insurance.The paper considers several scenarios for the impact of pollutants on the growth of number of pension recipients. The indicator of the share of expenditures on social protection and social security of the population in the gross national product was chosen as the target variable of the process under study. Mathematical models were found to be adequate to the modeling process, and the Bayesian network classification error is about 20%. The model structure is built in Genie 2.0 modeling system. The principal component analysis, is used to reduce the data dimension. The proposed methodology can also be applied to other tasks of forecasting social protection and social security expenditures.

A building block approach to retirement income design

Abstract This paper addresses the retirement income planning problem from the perspective of the four main building blocks of retirement income: state pension, mortality credits, investment strategies, and drawdown schedules. We detail how these building blocks interact to form a retiree's overall retirement income portfolio, and what trade-offs and interactions must be considered. We find that while access to each building block increases the retiree's certainty equivalent consumption, the most substantial contributor to this increase is from utilization of the mortality credit building block (i.e., annuities).

BASIC IMPERATIVES FOR MODELING PENSION PAYMENTS IN THE PENSION SECURITY SYSTEM OF UKRAINE

The purpose of the article is to research and analysis of the amount of indexation of pension payments related to inflationary processes. The object of the study is the state of pension provision in Ukraine. The subject of the study is the process of indexation of pension payments as a result of the implementation of social policy in Ukraine. An analysis of the history of the development and reform of pension provision in Ukraine was carried out. This allowed for a deeper understanding of the content of events related to the establishment of pension provision in Ukraine. The research methodology involves the synergy of mathematical methods of analytical geometry and economic-mathematical modelling. It is shown that the presence of inflationary processes in the national economy leads to the need to increase the pension provision of citizens. At the same time, the size of the increase in pension payments should be differentiated in order to ensure social "justice". The scientific task set in the article is to demonstrate a modern approach to choosing a strategy for implementing the state pension policy in Ukraine. As a result of the research, two models of appropriate indexation of pension payments in Ukraine are presented. The calculation made it possible to choose the most significant model. In the future, it is advisable to direct the research to the search for other more effective ways of indexing pensions. It is assumed that for this it is necessary to formalize the mathematical formulation of the problem of finding the optimal value of the index of pension payments as extreme, taking into account the necessary restrictions. A scientific novelty in solving this issue is the receipt of practically significant recommendations regarding the indexation of pensions. The practical significance of the obtained results lies in the elimination of social defects in the indexation of pension payments. Further research should be directed to the search for rational solutions that will stimulate the creation of an effective pension system in Ukraine.

Современная парадигма пенсионного обеспечения в Европе

Introduction. Pension systems are a key element of social protection for the elderly. They are designed to provide senior citizens with stable income not from work. However, pension systems currently being developed in Europe are increasingly exposing the working-age population to the risk of poverty in old age. The European pension paradigm strives for an adequate level of pension payments and builds financial protection against poverty, while the future evolution of wages and prices remains unknown for Europe as a whole.Methods. Scientific research is based on general and special methods of scientific cognition. In the process of forming the concept of the scientific article, modern scientific methods of studying economic and social phenomena were used, including methods of system-structural, functional, factorial and comparative analysis, as well as categorical, logical and structural analysis and synthesis, detailing and generalization, grouping and comparison, identification of cause-and-effect relationships. The authors proceed from an understanding of the scientific hypothesis of reforming the pension system, which ensures long-term investment by the working-age population with income in the future. The empirical base of the study was made up of current data from cross-country comparative studies of Europe in terms of typology of state pension systems.Results. Based on the functional method of cognition, the authors of the scientific article systematize the main types of state pension systems of the European Union, representing the complex content of the indicator value of pension payments. It is noted that in the context of reforming the pension systems of the European Union countries, the reorganization of the functional and ideological components of pension provision, aimed at protecting consumers of pension savings, makes it possible to increase the socio-economic standard of living. Although EU pension systems differ in many respects, they all have one common problem - finding ways to maintain the financial sustainability of the budgetary system while paying pensions in the long term against the backdrop of an aging population and the problem of increasing the ratio of pensioners to the working-age population.

ПРАВОВАЯ ПОЛИТИКА ГОСУДАРСТВ-ЧЛЕНОВ ЕАЭС В СФЕРЕ РЕАЛИЗАЦИИ ПЕНСИОННЫХ ПРАВ

The article discusses issues of legal policy of the EAEU member states in the field of implementation of pension rights of citizens using the comparative method. Based on the legislative practices of states, the author examines the models of state pension systems and highlights their specifics and common, advantageous features. In the process of the study, the essence and direction of reforms of state pension systems were established, aimed at solving a number of problems in reducing social tensions, with the gradual release of the budget from the burden of pension payments, reducing the unemployment rate, which helps to increase the interest of citizens in pension savings and stimulate the personal responsibility of citizens for pension provision for a decent standard of living when acquiring pension rights. It is noted that one of the fundamental principles and norms of international law in the system of protection of social and labor human rights is the right to pension provision, guaranteed by the constitutions of the EAEU member states and their obligations to fulfill the ILO minimum social standards to provide citizens with at least 40% of the level of pensions in relation to average salary. At the same time, states should direct efforts to implement policies to ensure employment, protection against unemployment and the development of non-state investment institutions in the field of pensions.

Gender-differences in retirement from entrepreneurship: the influence of pension policies across Europe

PurposeThe interest in older entrepreneurs increases due to population aging. Previous research showed clear gender-differences among older entrepreneurs. This study investigates whether such gender-differences also exist in the retirement transition from entrepreneurship. It explores the influence of pension regulations for entrepreneurs on these gender-differences.Design/methodology/approachLongitudinal micro-level data from the Survey of Health, Aging and Retirement in Europe is analyzed in multichannel sequence analyses and cluster analyses. Developments from age 50 to 69 are compared in the dimensions of entrepreneurship, employment and old-age pensions.FindingsEntrepreneurs retire in three different transition patterns: (1) entrepreneurs becoming pensioners at 60, (2) entrepreneurs becoming pensioners at 65 and (3) individuals combining entrepreneurship with employment until they become pensioners at 65. Female entrepreneurs follow the same transition patterns as their male counterparts but retire earlier. Pension regulations for entrepreneurs modify the extent of the gender-differences within a country. Mandatory pension schemes with identical state pension ages for men and women reduce gender-differences, whereas mandatory schemes with gender-differences in the state pension age increase them. Schemes without mandatory coverage range in between the other two.Originality/valueThis article expands our knowledge on gender-differences among older entrepreneurs. These gender-differences also extent to how entrepreneurs transition into retirement. Pension regulations for entrepreneurs influence the extent of the gender-differences. Therefore, pension regulations for entrepreneurs constitute tools for promoting or hindering gender equality.

Understanding migrants' attitudes towards state pension: The role of length of stay and settlement intention

AbstractOld‐age state pension is central to European welfare states. Despite the growing number of migrants in Europe, little is known about their attitudes towards state pension. Pension systems are designed for a ‘sedentary’ population, as they require many years of contribution or residency in the country. This often affects first‐generation migrants, who arrive in the residence country only at a later point in their lives. In this paper, we draw on self‐interest theory, which is commonly used to explain individuals' support towards welfare institutions and theorize on how the migration experience adds to the standard model of self‐interest in relation to support for government spending on old‐age state pensions. Hence, we move beyond traditional indicators of self‐interest such as education and employment status and we test hypotheses on how migrant‐specific characteristics like length of stay and settlement intention in the residence country are related to migrants' support for government spending on old‐age state pensions. We use data from the Migrants' Welfare State Attitudes (MIFARE) survey (2016), the first cross‐national survey that focuses on migrants' attitudes towards the welfare state that was collected in Denmark, Germany, and the Netherlands among nine different migrant groups from within and outside the EU. We find that migrants living in the country for over 5 years and those with longer settlement intentions have a higher support for government spending on pensions. We conclude that it is crucial to take migrants' unique migration experiences into account when assessing their attitudes towards state pension.

Actualization of Indonesian Economic and Cultural Development Reviewed from Ibn Khaldun's Thoughts

The problem of poverty in Indonesia is very complex which can trigger economic and socio-cultural problems, namely that there is a poor population of 9.36 percent. This indicates that prosperity has not been achieved in economic development in Indonesia. Ibnu Khaldun explained that a developed country is determined by the strength of the government implementing sharia and justice which is implicitly in accordance with the ideals of national development in Indonesia. The aim of this research is to analyze the actualization of Indonesia's economic development in terms of Ibnu Khaldun's thoughts. The research method used is qualitative library research sourced from secondary data using library research techniques from Muqaddimah books, journal articles and various kinds of relevant library materials which are then analyzed using descriptive analysis methods. The results of this research are that Indonesia's economic development has not yet achieved economic and socio-cultural balance as stated by Ibnu Khaldun. This is based on an imbalance between state revenues and government expenditure. The high taxes imposed on the public cannot yet be directly proportional to state spending which should be able to reduce inequality, poverty and so on, especially in underdeveloped areas.

State Spending Targets for Prescription Drugs

State Spending Targets for Prescription Drugs

Impact of Political Ideology on Spending Audiences of Brazilian States

Objective: The present study seeks to verify the extent to which affiliation with parties in different locations on the ideological spectrum explains public spending in Brazilian states (2012-2017). Theoretical framework: To achieve the proposed objective, the article in question has a section where the theoretical framework is exposed, consisting of the discussion regarding the classic distinctions between left and right and the relationship with the provision of public policies. Method: Data were collected using the National Treasury Secretariat (STN) databases. Some expenditure functions were chosen which, in principle, would denote ideological divergences between left and right parties and consequently differentiated public spending, namely: public security, social assistance, health, education, urban planning and environmental management. With the database ready, the Chi-square test was carried out to check whether there was an association between ideologies and spending. The Mann-Whitney U test was subsequently applied to compare the median expenditures of the two terms (2012-2014 and 2015-2017). Finally, panel data were used. Results and Discussion: It can be seen that there is no consistent relationship between ideology (E/D) and public spending, that is, left-wing and right-wing parties tend to spend similarly. The exceptions are spending on education and urbanization, which are higher in states led by managers affiliated with left-wing parties, as expected. Implications of the Research: If ideology is a good predictor of political positioning in the legislature, the same cannot be said in the executive and subnational governments. The ideological component here remains in the background and reveals little explanatory power. Originality/Value: Few studies delve into the impact of political ideology on the provision of public policies.

საპენსიო სისტემის რეფორმის აქტუალურობა საქართველოში

Georgia urgently needs pension reform. The disadvantage of the existing pension model was its pressure on the state budget. At the same time, the resent demographical changes, the increase in the life expectancy of pensioners, active aging in the demographic sector, the tendency of the labor force to decrease, the introduction of universal health insurance and other factors have had a significant impact on the country's economy and have highlighted new challenges that have put the sustainability of the state pension system at risk. The discussion of the need of the pension system reform in Georgia has become more and more active in recent years. It should be emphasized that within the expenditure allocation of the state budget, the largest proportion is attributed to social expenditures, with the state pension system claiming the most significant share. The pension scheme operating in Georgia does not guarantee a sufficient standard of living, it provides only a basic income, and that is why the government has prioritized the need of pension reform on the agenda so that the system responds more to the needs of aging populations and ensures their honorable old age as much as possible.

A Model for Occupational Pensions Privately Administered for Police and Military Personnel

Abstract In the context of legislation introduced in Romania through Law 1 of 2020 regarding occupational pensions, this paper presents an evaluation of occupational pension system for police and military personnel and takes into consideration privately administered funds that would complement the current system. The paper evaluates the impact of the complementary occupational pension system, focusing on its dual role as both a fiscal instrument for internal financing within Romania and a mechanism for enhancing social and economic security for retired police and military staff. The occupational pension system can diversify funding sources, potentially easing the national public debt burden, while offering a sustainable and adequate retirement income for service members. Furthermore, the analysis extends to the occupational pension system's efficacy in fostering workforce stability, particularly post-eligibility for military state pensions. The study addresses the system's potential influence on staff motivation and retention, underpinning its role in maintaining a robust and committed service workforce. This simulation-based study leverages international models and legislative frameworks to corroborate these benefits, providing a nuanced understanding of the occupational pension system’s role in the broader context of public service pensions.