User menu

Accès à distance ? S'identifier sur le proxy UCLouvain

Towards an equitable and sustainable points system. A proposal for pension reform in Belgium

Primary tabs

download
  • Open access
  • PDF
  • 819.28 K
Schokkaert, Erik [Katholieke Universiteit Leuven] Devolder, Pierre [UCL] Hindriks, Jean [UCL] Vandenbroucke, Frank [University of Amsterdam]

We describe the points system as proposed by the Belgian Commission for Pension Reform 2020–2040. Intragenerational equity can be realised through the allocation of points within a cohort. The intergenerational distribution is determined by fixing the value of a point for the newly retired and a sustainability parameter for the actual retirees. The value of the point links pensions to the average living standard of the employed population. We propose an automatic adjustment mechanism, in which a key role is played by the career length. This mechanism induces a balanced distribution of the burden of demographic and economic shocks over the different cohorts.

Document type Article de périodique (Journal article) – Article de recherche
Access type Accès libre
Publication date 2020
Language Anglais
Journal information "Journal of Pension Economics and Finance" - Vol. 19, no. 1, p. 49-79 (2020)
Peer reviewed yes
Publisher Cambridge University Press (CUP)
issn 1474-7472
e-issn 1475-3022
Publication status Publié
Affiliations UCL - SSH/LIDAM/CORE - Center for operations research and econometrics
UCL - SSH/LIDAM/ISBA - Institut de Statistique, Biostatistique et Sciences Actuarielles
Keywords pension reform ; points sytem ; automatic adjustment ; Musgrave rule
Links
  1. Ball Laurence, Mankiw N. Gregory, Intergenerational Risk Sharing in the Spirit of Arrow, Debreu, and Rawls, with Applications to Social Security Design, 10.1086/520646
  2. Barr Nicholas, Diamond Peter, Reforming pensions: Principles, analytical errors and policy directions, 10.1111/j.1468-246x.2009.01327.x
  3. Quelles options pour réduire la dépendance à la croissance du système de retraite français? Revue Economique, 67, 879 (2016)
  4. Rational Pension Policies (2015)
  5. How an Unfunded Pension System Looks Like Defined Contribution: The German Pension Reform (2007)
  6. A Strong and Reliable Social Contract (2014)
  7. De Donder Philippe, Hindriks Jean, 10.1023/a:1005023531490
  8. De Menil Georges, Murtin Fabrice, Sheshinski Eytan, Yokossi Tite, A rational, economic model of paygo tax rates, 10.1016/j.euroecorev.2016.06.002
  9. Public Pension Systems. The Greatest Economic Challenge of the 21st Century (2018)
  10. Devolder Pierre, Melis Roberta, Optimal Mix between Pay As You Go and Funding for Pension Liabilities in a Stochastic Framework, 10.1017/asb.2015.14
  11. Insurance: Mathematics and Economics, 69, 117 (2016)
  12. Howse Kenneth, Updating the Debate on Intergenerational Fairness in Pension Reform, 10.1111/j.1467-9515.2007.00538.x
  13. KNELL MARKUS, How automatic adjustment factors affect the internal rate of return of PAYG pension systems, 10.1017/s1474747209990035
  14. Lindbeck Assar, Persson Mats, The Gains from Pension Reform, 10.1257/.41.1.74
  15. Inequalities in Longevity By Education in OECD Countries: Insights From new OECD Estimates (2017)
  16. Public Finance in a Democratic Society, 103 (1986)
  17. Myles John, A New Social Contract for the Elderly?, Why We Need a New Welfare State (2002) ISBN:9780199256433 p.130-172, 10.1093/0199256438.003.0005
  18. Putting Pensions on Auto-Pilot: Automatic Adjustment Mechanisms and Financial Sustainability of Retirement-Income Systems (2012)
  19. Neutral or Fair? Actuarial Concepts and Pension-System Design (2006)
  20. Schokkaert Erik, Van Parijs Philippe, Debate on Social Justice and Pension Reform : Social Justice and the Reform of Europe's Pension Systems, 10.1177/09589287030133003
  21. Assessing the Economic and Budgetary Impact of Linking Retirement Ages and Pension Benefits to Increases in Longevity (2013)
  22. Tijdschrift voor Economie en Management, 34, 35 (1989)
  23. Tabellini Guido, The Politics of Intergenerational Redistribution, 10.1086/261753
Bibliographic reference Schokkaert, Erik ; Devolder, Pierre ; Hindriks, Jean ; Vandenbroucke, Frank. Towards an equitable and sustainable points system. A proposal for pension reform in Belgium. In: Journal of Pension Economics and Finance, Vol. 19, no. 1, p. 49-79 (2020)
Permanent URL http://hdl.handle.net/2078.1/200754