Facts from social security

 Ten facts from social security.

China pension report

The Chinese CISS has published the China Pension Report 2012. China has a strategy of development of the market economy and the goal of a “more reliable social security”, based on “wide coverage, basic security, multi-level, sustainability”. The report is very interesting to know first-hand the thinking and facts around Chinese pensions. A short list of results can be found in this interview with Zheng Bingwen, main author of the report.

European pension reform

This is the white paper by the European Commission on pension reform. We see first that parametric reforms (change in age of retirement, for example), are reducing replacement rates in most countries, but not in all. Second, we see that there are large differences in the share of Europeans working after age 55: 70% in Sweden, 57% in the UK, and only 36% in Italy.

The main recommendations of the report:

• improve job opportunities for older workers,
• encourage private retirement schemes and provide incentives including tax breaks,
• improve protection for international migrants,
• link retirement age with life expectancy, restricting early retirement and closing the pension gap between men and women.

Benefits cut or tax increases?

In the face of financial insolvency, social security schemes have only two options: benefits cut or increase in taxes. In a survey, Americans voted for taxes increases. Read the complete note here.

Contribution density, IMSS 2012

These figures represent an estimate of the IMSS density of contributions using data from Encuesta de Trayectorias Laborales  of Mexico. Unlike previous estimates, these figures only take into account people who contribute to the IMSS in 2012.

 

 

Discussions in Chile to improve the pension system

Read the complete note here

Increases in life expectancy

This is an interesting note on life expectancy

Discussion to reform Uruguay´s pension system

During these weeks there are several discussion to reform the pension system in Uruguay. You can read the note here

15 years of the Mexican new pension system

In this link you can access the presentations of the event organized to celebrate 15 years of the new system

New changes to Peruvian Private Pension System

During the last days it was know the result of the auction to assign new accounts to pension fund managers (AFP). The winning bidder will charge 1.60%. More information here.

New publication on pensions

Yesterday in Santiago, Chile, we had the presentation of the Spanish edition of Pensions at a Glance, the OECD publication. This has been edited in a collaboration between the CIEDESS from Chile and the CISS. CISS members attending the Quito meeting last week obtained their copy.

Study reveals low replacement rates in "solidarity pillar" of Chile

According to a study commissioned by the AFP to the Department of Scientific and Technological Research (Dictuc) of the Catholic University in Chile replacement rates were 88% in the case of men and 64% for women for the 26,002 affiliates who retired in the first quarter of 2011. However, when replacement rates for the contribution of so-called solidarity pillar for the poorest 40% of the population where calculated, they reported that these drop to 72% for men and 37% for women. More information here.

The Americas Social Security Report celebrates 10 years – Fairness, Work, Retirement, and Social Protection 2012

Following with the summary of 10 years of Americas Social Security Reports, this note will discuss the Americas Social Security Report 2012 – Fairness, Work, Retirement, and Social Protection. The Report contributes to the debate over how regulations on work and retirement should be reformed, and how social security should evolve so as to make retirement a benefit and not a costly event. The Report provides statistics about main variables that characterize labor markets across the lifecycle,  summarizes the main hypothesis provided by the social sciences on the phenomenon of retirement age, and provides a detailed compilation of information and a significant actuarial analysis to obtain simple measurements of pension retirement benefits that can be compared between systems.

Recommendations of Pensions at Glance 2012

Here some recommendations that emerge from Pensions at Glance 2012.

France reduced retirement age

The French government agreed to cut the retirement age for some workers to 60 years (Sarkozy had risen to 62 years). The European Union is concerned because this measure could damage further the social welfare system. More information here.

The CISS participated in the 17 th International Conference of the ISSA

The Inter-American Conference on Social Security (CISS) participated in the 17th International Social Security Association (ISSA) International Conference of Social Security Actuaries and Statisticians, with the paper "Indicators of Pension Benefits in Latin America and the Caribbean "presented by Act. Martha Miranda. The conference was held in Berlin, Germany from 30 May to 1 June 2012, at the invitation of the German Federal Pension Insurance. This meeting was held on a triennial to promote actuarial research and applied techniques.

 

2012 FIAP International Seminar

From 31st May to 1st June the International Seminar of the International Federation of Pension Fund Administrators (FIAP) "Opportunities and Challenges for Individually-Funded Systems in a Globalised World" took place in Cancun, Mexico. Here all the news about the Seminar.

The "brick" and Chilean pension reform

The reform to the pension system in Chile has been one of the more researched events in social security. For those interested in history, the "brick" is a main reference. This is a document drafted by a group of Chilean economists during the early seventies. There, the main ideas for reform are outlined (see part G in chapter 2). We notice that in the opinion of this seminal authors, they were devolving the system to its principles.

Possible cuts in public pensions in Canada

Canadian Prime Minister, Stephen Harper, plans to implement cutbacks to public pensions. More information here.

Generous pensions can cause economic slowdown in Brazil

Generous pensions received by civil servants (or their families) in Brazil can be one of the causes of the economic slowdown in that country. Congress passed a bill that limits the pensions of public officials. More information here.