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E M P L O Y E E B E N E F I T S , C O M P E N S A T I O N
& P E N S I O N L A W
Vol. 4, No. 9: May 8, 2003
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Publisher: LSN Employment, Labor, Compensation & Pension Journals
a division of
Social Science Electronic Publishing, Inc. (SSEP)
and Social Science Research Network (SSRN)
Editor: PAMELA PERUN
Urban Institute
Mailto:pamela@planetnow.com
Copyright: SSEP, Inc. 2003. All rights reserved.
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Topic of This Issue:
International Developments
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T A B L E of C O N T E N T S
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NEW and FORTHCOMING ARTICLES
"Old Age Protection in India: Problems and Prognosis"
International Social Security Review, Vol. 55, pp. 95-121,
2002
RANADEV GOSWAMI
Indian Institute of Management, Bangalore
"Income Security for Older People: An Asian Perspective"
International Social Security Review, Vol. 55, pp. 49-65,
2002
R. K. A. SUBRAHMANYA
Social Security Association of India
"Healthcare Financing Reform and the New Single Payer System in
The Republic of Korea: Social Solidarity or Efficiency?"
International Social Security Review, Vol. 56, pp. 75-94,
2003
SOONMAN KWON
Seoul National University
WORKING PAPERS
"Canadian Retirement Savings Plans and Italian Pension Reform"
JOEL FRIED
University of Western Ontario
Department of Economics
FRANCESCA ARNABOLDI
Bocconi University
Istituto di Economia dei Mercati e degli
Intermediari Finanziari Giordano Dell'Amore (IEMIF)
"Pensions and Retirement Incentives. A Tale of Three Countries:
Italy, Spain and the USA"
AGAR BRUGIAVINI
Universita' Ca' Foscari di Venezia
Department of Economics
FRANCO PERACCHI
Università degli Studi di Roma Tor Vergata
Centre for International Studies on Economic Growth
(CEIS)
DAVID A. WISE
National Bureau of Economic Research (NBER)
Harvard University
John F. Kennedy School of Government
"Pension Reform and Economic Performance in Britain in the 1980s
and 1990s"
RICHARD F. DISNEY
University of Nottingham
Axia Economics
Institute for Fiscal Studies (IFS)
CARL EMMERSON
Institute for Fiscal Studies (IFS)
SARAH SMITH
Institute for Fiscal Studies (IFS)
"The Implications of an Ageing Population for the UK Economy"
GARRY YOUNG
Bank of England
Domestic Finance Division
S S R N I N F O R M A T I O N
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N E W and F O R T H C O M I N G Articles
_________________________________________________________________
"Old Age Protection in India: Problems and Prognosis"
International Social Security Review, Vol. 55, pp. 95-121,
2002
BY: RANADEV GOSWAMI
Indian Institute of Management, Bangalore
Document: Available from the SSRN Electronic Paper Collection:
http://papers.ssrn.com/paper.taf?abstract_id=309077
Contact: RANADEV GOSWAMI
Email: Mailto:ranadev2020@yahoo.com
Postal: Indian Institute of Management, Bangalore
Bannerghatta Road
Bangalore 560 076, Karnataka INDIA
ABSTRACT:
This paper reviews the current state of the Indian pension
system. The Indian experience could potentially influence policy
decisions in other developing countries, especially those with
similar reliance on the national provident fund system.
Institutional features of various retirement benefit schemes are
highlighted and their deficiencies are discussed. It is argued
that low coverage level, underperformance of provident fund
schemes due to investment restrictions, and financial
difficulties in administering unfunded public pension programmes
have rendered the current system ineffective and unsustainable.
The failed experiments with ad hoc reform initiatives in the
recent past further emphasize the need for a structural and
lasting change. The paper concludes with some policy directions
for reforming the Indian pension system.
______________________________
"Income Security for Older People: An Asian Perspective"
International Social Security Review, Vol. 55, pp. 49-65,
2002
BY: R. K. A. SUBRAHMANYA
Social Security Association of India
Document: Available from the SSRN Electronic Paper Collection:
http://papers.ssrn.com/paper.taf?abstract_id=309067
Contact: R. K. A. SUBRAHMANYA
Email: Mailto:author340268@ssrn.com
Postal: Social Security Association of India
Bangalore, INDIA
ABSTRACT:
In Asia and the Pacific, as in other developing regions, the
continuing growth of the aged population has a great impact on
social security programmes generally and, in particular, on the
income security of older persons. In societies where traditional
support systems are breaking up, their need for social security
protection is increasingly important. A system of social
security for the elderly population exists in most countries of
the region. Many are provident fund schemes, which are basically
saving schemes, and their coverage is low. Where social
insurance pension schemes exist, the levels of benefits provided
are also low. The focus for future development, therefore, lies
in converting the savings schemes into multitiered pension
schemes, extending their coverage and raising the level of
benefits. In this context the critical question concerns the
role of the State and the type of schemes used. The need for
public pension schemes is great in Asia and the Pacific, where
the level of poverty is comparatively high. Building pension
schemes, whether public or private, involves a set of issues
that need to be addressed. This article considers the systems
currently in place and the challenges and limitations faced when
considering the future development of social security in this
area.
______________________________
"Healthcare Financing Reform and the New Single Payer System in
The Republic of Korea: Social Solidarity or Efficiency?"
International Social Security Review, Vol. 56, pp. 75-94,
2003
BY: SOONMAN KWON
Seoul National University
Document: Available from the SSRN Electronic Paper Collection:
http://papers.ssrn.com/paper.taf?abstract_id=377098
Contact: SOONMAN KWON
Email: Mailto:kwonsm@maincc.hufs.ac.kr
Postal: Seoul National University
San 56-1 Shillim-dong
Kwanak-ku
Seoul, 151-742, KOREA
Phone: (82) 2 3421-5219
Fax: (82) 2 3421-5219
ABSTRACT:
In July 2000, national health insurance in the Republic of Korea
was transformed into a single insurer system. This major reform
in healthcare financing resulted from the merger of more than
350 health insurance societies. Inequity in healthcare financing
and the chronic financial situation of the health insurance
societies for self-employed workers in rural areas have been the
driving forces leading to the unified health insurance system.
The unique institutional context together with political change
opened the window of policy change, and various stakeholders
such as politicians, rural self-employed workers, trade unions
and civic groups were involved in the healthcare reform process.
Fair income assessment of the self-employed and the role of the
single insurer as a prudent purchaser of medical care will be
vital for the new system to achieve its intended goal and
improve social solidarity and efficiency of healthcare.
______________________________
W O R K I N G P A P E R Abstracts
_________________________________________________________________
"Canadian Retirement Savings Plans and Italian Pension Reform"
BY: JOEL FRIED
University of Western Ontario
Department of Economics
FRANCESCA ARNABOLDI
Bocconi University
Istituto di Economia dei Mercati e degli
Intermediari Finanziari Giordano Dell'Amore (IEMIF)
Document: Available from the SSRN Electronic Paper Collection:
http://papers.ssrn.com/paper.taf?abstract_id=370600
Other Electronic Document Delivery:
http://www.ssc.uwo.ca/economics/centres/epri/
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Paper ID: University of Western Ontario, Economic Policy
Research Institute Working Paper No. 2002-7
Date: December 2002
Contact: FRANCESCA ARNABOLDI
Email: Mailto:francesca.arnaboldi@uni-bocconi.it
Postal: Bocconi University
Istituto di Economia dei Mercati e degli
Intermediari Finanziari Giordano Dell'Amore
(IEMIF)
Via Sarfatti
25 - 20136 Milano, ITALY
Phone: +390258365965
Co-Auth: JOEL FRIED
Email: Mailto:FRIED@UWO.CA
Postal: University of Western Ontario
Department of Economics
London, Ontario N6A 5C2 CANADA
ABSTRACT:
Canada has developed an extensive private pension system that
accounts for more than half the government assisted resources
available for retirement incomes. Private plans in Italy account
for less than one percent of retirement resources, but it has
recently provided pension reforms to encourage greater use of
these plans. This paper examines these reforms in light of
Canada's experience with its private savings plans. In general
terms the Canadian plans available to firms and individuals are
more integrated with one another than is allowed in Italy, and,
as well, the private plans in Italy have less flexibility to
address both pre-retirement cash needs and the ability to shift
retirement assets between portfolio managers. There are also
fewer post retirement options available in Italy. The greater
choice and flexibility of Canadian plans are seen as attractive
features to savers and further Italian reforms that provide
these characteristics to retirement savings plans should lead to
more rapid growth in Italian private plans.
Keywords: Pensions, Flexibility, Tax Deferred Savings
JEL Classification: G239, H550, J260
______________________________
"Pensions and Retirement Incentives. A Tale of Three Countries:
Italy, Spain and the USA"
BY: AGAR BRUGIAVINI
Universita' Ca' Foscari di Venezia
Department of Economics
FRANCO PERACCHI
Università degli Studi di Roma Tor Vergata
Centre for International Studies on Economic Growth
(CEIS)
DAVID A. WISE
National Bureau of Economic Research (NBER)
Harvard University
John F. Kennedy School of Government
Document: Available from the SSRN Electronic Paper Collection:
http://papers.ssrn.com/paper.taf?abstract_id=382986
Paper ID: CEIS Tor Vergata Research Paper No. 6
Date: February 2003
Contact: AGAR BRUGIAVINI
Email: Mailto:brugiavi@unive.it
Postal: Universita' Ca' Foscari di Venezia
Department of Economics
Cannaregio 873
Venezia VE 30121, ITALY
Co-Auth: FRANCO PERACCHI
Email: Mailto:franco.peracchi@uniroma2.it
Postal: Università degli Studi di Roma Tor Vergata
Centre for International Studies on Economic
Growth (CEIS)
Via Columbia, 2
Roma, ITALY
Co-Auth: DAVID A. WISE
Email: Mailto:DWISE@NBER.ORG
Postal: National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138 UNITED STATES
Paper Requests:
Contact Vincenzo Atella at Mailto:atella@uniroma2.it or Postal:
CEIS - Centre for International Studies on Economics and
Development, Univ. of Rome Tor Vergata, Via Columbia, 2 00133
Roma ITALY. Phone: 06/72595601, Fax: 06/2020687. Fee: 5 Euro per
paper.
ABSTRACT:
This paper looks at the relationship between the institutional
design of the social security system and retirement from the
labour force in three countries: Italy, Spain and the USA. Our
works stresses the importance of dynamic incentives embedded in
social security systems throughout the world and makes use of
these three countries as an example. In fact they provide enough
variability in their welfare programs that can be exploited to
explain differences in retirement behavior. We show that social
security rules are very important for individual's decisions to
retire at a given age and that policy changes aimed at achieving
age-neutrality of social security systems have a crucial role in
shaping welfare.
Keywords: pensions, retirement incentives, labor supply
JEL Classification: H31, H55, J26
______________________________
"Pension Reform and Economic Performance in Britain in the 1980s
and 1990s"
BY: RICHARD F. DISNEY
University of Nottingham
Axia Economics
Institute for Fiscal Studies (IFS)
CARL EMMERSON
Institute for Fiscal Studies (IFS)
SARAH SMITH
Institute for Fiscal Studies (IFS)
Document: Available from the SSRN Electronic Paper Collection:
http://papers.ssrn.com/paper.taf?abstract_id=387564
Paper ID: NBER Working Paper No. W9556
Date: March 2003
Contact: RICHARD F. DISNEY
Email: Mailto:RICHARD.DISNEY@NOTTINGHAM.AC.UK
Postal: University of Nottingham
School of Economics
University Park
Nottingham NG7 2RD, UNITED KINGDOM
Phone: +44 115 951 5620
Fax: +44 115 951 4159
Co-Auth: CARL EMMERSON
Email: Mailto:Carl.Emmerson@ifs.org.uk
Postal: Institute for Fiscal Studies (IFS)
7 Ridgmount Street
London WC1E 7AE, UNITED KINGDOM
Co-Auth: SARAH SMITH
Email: Mailto:sarah.smith@ifs.org.uk
Postal: Institute for Fiscal Studies (IFS)
7 Ridgmount Street
London WC1E 7AE, UNITED KINGDOM
Paper Requests:
Full-Text downloads are available from SSRN Online for $5.
ABSTRACT:
The late 1980s saw a major shift in pension provision in the
United Kingdom, when for the first time individuals were
permitted to opt out of part of the social security program into
individual retirement saving accounts (Personal Pensions). At
the same time, membership of company-provided pension plans
(occupational schemes) was made voluntary. The paper explores
the possible impact of these, and other related changes in
social security in the 1980s and 1990s in the UK, on household
saving rates, on current and future public finances, on
retirement, and on the job mobility of individuals covered by
company pension plans.
JEL Classification: H2
______________________________
"The Implications of an Ageing Population for the UK Economy"
BY: GARRY YOUNG
Bank of England
Domestic Finance Division
Document: Available from the SSRN Electronic Paper Collection:
http://papers.ssrn.com/paper.taf?abstract_id=340488
Other Electronic Document Delivery:
http://www.bankofengland.co.uk/workingpapers/wp159.pdf
SSRN only offers technical support for papers
downloaded from the SSRN Electronic Paper Collection
location. When URLs wrap, you must copy and paste
them into your browser eliminating all spaces.
Paper ID: Bank of England Working Paper No. 159
Date: July 2002
Contact: GARRY YOUNG
Email: Mailto:garry.young@bankofengland.co.uk
Postal: Bank of England
Domestic Finance Division
Threadneedle Street
London EC2R 8AH, UNITED KINGDOM
Phone: 020 7601 4792
Paper Requests:
Contact The Publications Group at Bank of England, Threadneedle
Street, London, EC2R 8AH, UK. Phone: +0207 601 4030. Fax: +0207
601 3298. Mailto:mapublications@bankofengland.co.uk
ABSTRACT:
This paper considers the likely development of aggregate living
standards in the United Kingdom over the course of this century
and some of the risks to this outlook. It argues that even under
relatively cautious assumptions about technological progress and
capital accumulation, aggregate living standards (as measured by
GDP per head) are set to double over the next 50 years. While
there are clear risks to this aggregate outlook, these would be
present even without demographic change. The paper also
discusses the risks to the living standards of individuals and
individual cohorts. These risks have changed in three main ways
as a result of demographic change. First, ageing has been a
factor throughout the world in encouraging a shift from public
to private provision for old age, increasing the proportion of
retired people exposed to risks to market prices and rates of
return. Second, the size of the group exposed to such risks is
growing larger as a direct result of ageing. Third, any adverse
effects of demographic change are most likely to be felt in old
age; one of the effects of people living longer is that they
have to spread their lifetime incomes over more years of life,
implying a need for more saving when working. If this does not
occur, then consumption has to be a lot lower in old age than
would have been the case had proper provision been made for
retirement.