Essay on the fairness of public pension systems

This thesis delves into the intricate task of pension system reform, highlighting the imperative for a comprehensive strategy encompassing financial sustainability, social adequacy, and transparency. The first framework applied to the Moroccan context employs retirement points guided by the Musgrave rule, with the overarching goal of bolstering both financial stability and inter-generational equity. Progressive pension formulas are introduced to mitigate longevity disparities, providing enhanced benefits to individuals with lower incomes and potentially shorter lifespans. To ensure the long-term viability of the system, the thesis suggests integrating automatic adjustment mechanisms into the pension formula, aligning with the principles of inter-generational and intragenerational equity. These mechanisms serve to balance the distribution of demographic risk between working individuals and retirees, contributing to the overall stability of the pension system. Furthermore, the thesis incorporates double Automatic Adjustment Mechanisms and stochastic multi-population mortality modeling, offering a more nuanced understanding of pension system design in the context of demographic changes and socio-economic disparities. By integrating double Automatic Adjustment Mechanisms and multi-population mortality modelling, this research contributes to equitable and sustainable pension system design, which is essential in navigating demographic changes and socio-economic differences tied to longevity. In summary, this thesis provides a comprehensive and innovative approach to pension system reform that addresses the key challenges of financial sustainability, social adequacy, demographic changes and longevity inequality.