The Politics of Pension Reform

The Politics of Pension Reform PDF Author: Giuliano Bonoli
Publisher: Cambridge University Press
ISBN: 9780521776066
Category : Business & Economics
Languages : en
Pages : 202

Book Description
A comparative study of European countries' efforts to reform pension systems in the context of ageing populations.

Pension Reform in Europe

Pension Reform in Europe PDF Author: Camila Arza
Publisher: Routledge
ISBN: 1134134363
Category : Political Science
Languages : en
Pages : 240

Book Description
This new book provides a cross-country comparative analysis of the key issues shaping the latest pension reforms in Europe: political games, welfare models and pathways, population reactions, and observed and expected outcomes. Pension reform has been a top policy priority for European governments in the last decade. Ageing populations, changing labour market patterns and the process of European integration are the ‘irresistible forces’ pushing for reform throughout the region. The Political Economy of Pension Reform evaluates the political forces that make pension reform viable in different national and institutional contexts and the nature of political bargains, actors and cleavages surrounding policy change. The volume also examines the nature and outcomes of pension reform experiences in Europe, searching for a solution to the financial challenge posed by growing pension budgets. By addressing the nature of change, the pathways of reform, and the outcomes of the new pension mix in the region, the authors conclude with an analysis of people’s perceptions and attitudes towards pension policy and their acceptance or otherwise of different reform options. This book will be of interest to students and scholars of international political economy, European politics, and social policy.

The Politics of Pension Reform

The Politics of Pension Reform PDF Author: Richard Brooks
Publisher:
ISBN:
Category : Old age pensions
Languages : en
Pages : 100

Book Description


How Politics and Institutions Affect Pension Reform in Three Postcommunist Countries

How Politics and Institutions Affect Pension Reform in Three Postcommunist Countries PDF Author: Mitchell Alexander Orenstein
Publisher: World Bank Publications
ISBN:
Category : Bank
Languages : en
Pages : 80

Book Description
The author examines the political and institutional processes that produced fundamental pension reform in three post-communist countries: Hungary, Kazakhstan, and Poland. He tests various hypothesis about the relationship between deliberative process and outcomes through detailed case studies of pension reform. The outcomes of reform were similar: each country implemented a mandatory funded pension system as part of reform, but the extent, and configuration of changes, greatly differed. Countries with more veto actors - social and institutional actors with an effective veto over reform - engaged in less radical reform, as theory predicted. Poland and Hungary generated less radical change than Kazakhstan, partly because they have more representative political systems, to which more associations, interest groups, and proposal actors have access. Proposal actors shape the reform agenda and influence the positions of key veto actors. Pension reform takes longer in countries with more veto and proposal actors, such as Poland and Hungary. Legacies of policy, the development of civil society, and international organizations, also profoundly affect the shape and progress of reform. The author sees pension reform as happening in three phases: commitment-building, coalition-building, and implementation. He presents hypothesis about tradeoffs among inclusiveness (of process), radicalism (of reform), and participation in, and compliance with, the new system. The hypothesis: including more, and more various, veto and proposal actors early in the deliberative process, increases buy-in and compliance when reform is implemented, but at the expense of faster and greater change. Early challenges in implementation in all three countries, nut especially in Kazakhstan, suggest the importance of improving buy-in through inclusive deliberative processes, where possible.

How Politics and Institutions Affect Pension Reform in Three Postcommunist Countries

How Politics and Institutions Affect Pension Reform in Three Postcommunist Countries PDF Author: Mitchell A. Orenstein
Publisher:
ISBN:
Category :
Languages : en
Pages : 84

Book Description
During reform's three pha ...

The Political Economy of Pension Reform in Central-Eastern Europe

The Political Economy of Pension Reform in Central-Eastern Europe PDF Author: Katharina Müller
Publisher: Edward Elgar Publishing
ISBN:
Category : Europe, Central
Languages : en
Pages : 248

Book Description
This volume contains the findings of the research project "Institutional Change in Social Security: Pension Reforms in Poland, Hungary and the Czech Republic," which was completed in early 1999. Muller, a research fellow with the Frankfurt Institute for Transformation Studies at the European University Viadrina, examines the partial privatization path that Poland and Hungary chose, and compares their Latin American-styled methods to those of the Czech Republic (which fall well within the boundaries of the Bismarckian-Beveridgean pension traditions). In particular, she looks at which structural-institutional and actor-related factors account for radial pension reform. Annotation copyrighted by Book News, Inc., Portland, OR

The Political Economy of Pension Reform

The Political Economy of Pension Reform PDF Author: Evelyne Huber
Publisher: Conran Octopus
ISBN:
Category : Latin America
Languages : en
Pages : 66

Book Description
Since pension schemes-along with health care and education-absorb the largest amount of social expenditure in all countries, their reform has a potentially major impact both on the fiscal situation of the state and on the life chances of citizens who stand to win or lose from new arrangements. This makes pension reform a highly controversial issue; and, except for the addition of new programmes and benefits, major restructuring of existing pension systems has been extremely rare in advanced industrial democracies. It was also rare in Latin America before the 1980s and 1990s. But there has been a great deal of experimentation within the region during the past decade. This paper examines the larger economic, social and political context of Latin American pension reform and compares experiences in different countries of the region with options available in Western European societies during the same period. The authors argue that the type of pension reform undertaken in Latin America has been an integral part of the structural adjustment programmes pursued by Latin American governments, under the guidance of international financial institutions (IFIs). Although there was a range of possible remedies to the problems of pension systems in different Latin American countries, neo-liberal reformers and the international financial institutions preferred privatization over all others. They claimed that privatization would be superior to other kinds of reform in ensuring the financial viability of pension systems, making them more efficient, establishing a closer link between contributions and benefits and promoting the development of capital markets-thus increasing savings and investment. And they were able to push through some of their suggestions for reform in spite of considerable opposition from pensioners, trade unions and opposition political parties. Interestingly enough, their pressure proved least effective in the more democratic countries of the region. In Costa Rica, for example, citizens preferred to reform the public system-eliminating the last pockets of privilege for public sector workers and ensuring that new levels of contribution would be adequate to provide minimum benefits for the aged and infirm. In Uruguay, citizens forced a public referendum, through which they rejected a proposal for privatization. At a later stage, they did permit the introduction of private investment accounts, but not at the cost of eliminating the public programme. In Argentina and Peru, after the legislature refused to authorize partial privatization, this was eventually pushed through by presidential decree. Only in Chile and Mexico has there been a complete shift to private pension funds-but, in both cases, influential sectors of the elite, including the military, have been allowed to keep their previous, publicly managed group funds. Looking at the only privatized pension system in existence long enough to allow for some assessment of its consequences-that of Chile-the authors find that many of the claims made by supporters of privatization are not substantiated by the evidence. The first discrepancy between neo-liberal predictions and the reality of Chilean pension reform has to do with efficiency. All previous claims to the contrary, private individual accounts have proven more expensive to manage than collective claims. In fact, according to the Inter-American Development Bank, by the mid-1990s administration of the Chilean system was the most expensive in Latin America. The second disproved claim involves yield. When administrative costs are discounted, privately held and administered pension funds in Chile show an average annual real return of 5.1 per cent between 1982 and 1998. Furthermore high fees and commissions-charged at a flat rate on all accounts-have proven highly regressive. When levied against a relatively modest retirement account, for example, these standard fees reduced the amount available to the account holder by approximately 18 per cent. When applied to the deposit of an individual investing 10 times more, the reduction was slightly less than 1 per cent. The third discrepancy involves competition. Although it was assumed that efficiency within the private pension fund industry would be associated with renewed competitiveness-while the public pension system represented monopoly-the private sector has in fact become highly concentrated. The three largest pension fund administrators in Chile handle 70 per cent of the insured. And to reduce advertising costs, public regulators are limiting the number of transfers among companies that any individual can make. A fourth unfulfilled promise of privatization in Chile has to do with expansion of coverage. It was assumed that the existence of private accounts would increase incentives for people to take part in the pension sc heme, but in fact this has not happened. Coverage and compliance rates have remained virtually constant. A fifth major claim was that the conversion of the public pension system into privately held and administered accounts would strengthen capital markets, savings and investment. But a number of studies have recently concluded that, at best, this effect has been marginal. And finally, the dimension of gender equity within a fully privatized pension scheme is being subjected to increasing scrutiny. Women typically earn less money and work fewer years than men. Therefore, since pension benefits in private systems are strictly determined by the overall amount of money contributed to them, women are likely to receive considerably lower benefits. Public pension systems, in contrast, have the possibility of introducing credits for childcare that reduce this disadvantage. Sweden is an example of countries that have embarked on this course. In the latter part of the paper, Huber and Stephens widen their comparative framework to include recent pension reforms in advanced industrial countries. There, where economic crisis was not as severe and where pressure from international financial institutions was not significant, much broader options for reform were available. In fact, although long-established systems were under stress, no developed country opted for complete privatization. Complex measures were taken to strengthen the funding base of national pension systems, including changes in investment procedures and changes in rules for calculating pension benefits. Reforms also increased retirement age, as well as the number of years required to qualify for a full pension. But even the most thoroughgoing reforms retained a central role for public schemes in ensuring old-age benefits. In conclusion, the authors consider steps that can be taken to craft pension reforms with more desirable results than those obtained to date in Latin America. They recommend measures that address the problem of an aging population by increasing the ability of each generation to pay for its own pensions-rather than relying primarily on the contributions of preceding generations of insured workers. Pension payments should be invested in a variety of financial instruments and benefits must ultimately be related to the yields obtained. Such a strategy does not require introduction of privately managed, individually held, investment funds. On the contrary, risk is lessened by relying instead on collectively managed funds, in which accounts can either be identified with individuals or-more equitably-with generations of contributors. Reformed public pension systems should also contain minimum "citizenship pensions" that guarantee subsistence income in old age to all individuals as a matter of right. Such a measure, financed from general tax revenue rather than from personal contributions, is not beyond the means of medium income countries in Latin America and the Caribbean. In fact, some Nordic countries introduced citizenship pensions when their GNP per capita was lower than that of most Latin American countries today.

The Reform of Bismarckian Pension Systems

The Reform of Bismarckian Pension Systems PDF Author: Martin Schludi
Publisher: Amsterdam University Press
ISBN: 9053567402
Category : Business & Economics
Languages : en
Pages : 312

Book Description
Offers an analysis of the political process involved in the reform of the pension systems in European countries.

The Handbook of West European Pension Politics

The Handbook of West European Pension Politics PDF Author: M. Immergut
Publisher: OUP Oxford
ISBN: 0191569488
Category : Political Science
Languages : en
Pages : 968

Book Description
The Handbook of West European Pension Politics provides scholars, policy-makers and students with a complete overview of the political and policy issues involved in pension policy, and well as case studies of contemporary pension politics (1980 to present) in 16 countries: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, Switzerland, and the UK. The book is suitable as a text for courses in comparative politics, European Studies, social policy, comparative public policy and public administration. Each chapter is written by an expert on pension politics and is presented in a standardized format with standardized tables and figures that describe: political institutions; government coalitions, parliamentary and electoral majorities; the party system; the pension system; proposed and enacted pension reforms.

Political Preferences and the Aging of Populations

Political Preferences and the Aging of Populations PDF Author: Oliver Pamp
Publisher:
ISBN: 9783658086169
Category :
Languages : en
Pages :

Book Description
Oliver Pamp analyzes the likelihood and extent of pension reforms from a political-economy perspective. It is shown that voters' preferences for or against reforms are influenced by a societies' demographic development, the generosity of its existing public pension scheme and its electoral system. The author extensively reviews existing formal models of pension systems, discusses their merits and limitations, and develops a three-period overlapping generations model. The model's insights regarding individual reform preferences are then put into the context of different electoral systems, thus emphasizing the important role of electoral institutions in the aggregation of societal preferences. Finally, using cross-national survey data, logit and ordered-logit analyses tentatively confirm some of the model's main implications. Contents Population Aging and its Economic and Financial Consequences Formal Models of Pension Systems Pension Preferences and Reform - A Political-Economy Model Econometric Analyses of Cross-National Survey Data on Individual Pension Reform Preferences Target Groups Researchers, lecturers and students of political science and economics The Author Oliver Pamp is lecturer for empirical and formal methods at the Geschwister Scholl Institute of Political Science at the Ludwig Maximilians University in Munich (Germany). His research focuses, among other things, on the political economy of government budgets and social policy.