Final Report of the Special Legislative Commission to Study the Employees Retirement System in Rhode Island

The Commission to Study the State Retirement System proposed the following recommendations in summary form, which it considers feasible and practicable for revising and upgrading the existing retirement plans in accordance with principles that have received general acceptance in the field of pension planning for public employees. The recommendations are intended to resolve, in the most satisfactory manner, the several basic problems that have arisen during recent years, to the end that the retirement systems may continue to fulfill, with maximum effectiveness, their personnel and security objectives. The effective date proposed for all recommendations is July 1, 1970 unless otherwise noted

Privatizing Social Security: A Political-Economy Approach

The aging of the population shakes the public finance of pay- as-you-go social security systems. We develop a political-economy framework in which this demographic change leads to the downsizing of the social security system, and, as a consequence, to the emergence of supplemental individual retirement programs. Allowing for a one-shot budget deficit, earmarked to accommodate the cost of the social security reforms, is shown to facilitate the political-economy transition from a national to a private pension system.

A Case for Partial Funding of Pensions with an Application to the EU Candidate Countries

The paper examines the effects of ageing and makes a case for partial pre-funding of pensions. The argument is based on inter-generational fairness in a situation where pension expenditure as compared to wages increases due to low fertility and increasing longevity. We illustrate the approach by using data representing a typical EU Candidate Country of Central and Eastern Europe with a relatively high pension replacement rate. Pre-funding can take place within the public sector or in a privatised second pillar. We emphasise the need for a consistent framework to cover the many different institutional options available for pension financing.Pension system reform, partial pre-funding, ageing

A case for partial funding of pensions with an application to the EU Candidate Countries.

The paper examines the effects of ageing and makes a case for partial pre-funding of pensions. The argument is based on inter-generational fairness in a situation where pension expenditure as compared to wages increases due to low fertility and increasing longevity. We illustrate the approach by using data representing a typical EU Candidate Country of Central and Eastern Europe with a relatively high pension replacement rate. Pre-funding can take place within the public sector or in a privatised second pillar. We emphasise the need for a consistent framework to cover the many different institutional options available for pension financing.pension systems, demographics, reform

Distribution and labour market incentives in the welfare state – Danish experiences

In recent years, Denmark has been successful in ensuring and maintaining a low unemployment rate. However, almost one third of the working-age population remains dependent on public transfers, a fact which poses questions on both social inclusion and financial pressures on the welfare state. In this paper, we consider more closely the interaction between the social safety net and the need and scope for maintaining a high employment rate in a welfare state of the Scandinavian type. The focus is on the basic dilemma between ambitious distributional goals on the one hand and work incentives on the other. The paper discusses policy issues related to minimizing welfare dependence that improve the transition from welfare to work. We consider these issues in a life cycle perspective considering entry into the labour market, maintenance of labour market contact, and exit from the labour market. Finally, we consider some recent reform proposals and initiatives in Denmark.Incentives to work; Social safety net; Distribution

Committees Tackle the Deficit

Summarizes the recommendations of a presidential commission and private bipartisan committee for reducing the federal deficit by cutting healthcare costs, Social Security outlays, and discretionary spending, and by raising taxes

Pareto-Improving Social Security Reform

social security reform

Baby Boomers & adult Ageing: Issues for Social and Public policy

This paper provides a critical assessment of academic and policy approaches to population ageing with an emphasis on the baby boomer cohort and constructions of late-life identity. It is suggested that policy towards an ageing population has shifted in focus, away from particular social hazards and towards an attempt to re-engineer the meaning of legitimate ageing and social participation in later life. Three themes are identified: constructing the baby boomers as a force for social change, a downward drift of the age associated with 'older people' and a shift away from defining ageing identities through consumption, bacl towards work and production. The paper concludes with a discussion of the implications for future social and public policy

Retirement Savings in an Aging Society: A Case for Innovative Government Debt Management

Aging societies will have to rely increasingly on private savings to finance retirement. The natural savings vehicles, stocks and bonds, are unfortunately lacking key risk-sharing features that are built into public retirement. Innovative government debt management can address this problem. The optimal policy supplies retirees with securities that share the financial risks of aggregate productivity, asset valuation, and demographic shocks across generations. As the population ages, state-contingent government bonds are a better risk sharing tools than pensions, which become too costly, or taxation, which raises time-consistency problems. Wage-indexed and longevity-indexed bonds in particular yield unambiguous efficiency improvements. To the extent that public pensions remain important, plans with wage-indexed defined benefits seem preferable to defined contributions or price-indexed plans. Capital income taxes and pension trust funds can play a supporting role for risk sharing.