The Survey on Self-Adjustment Mechanisms for Social Security Schemes and Employer Sponsored Plans ("the Survey") has been developed by the Office of the Chief Actuary (Canada) and was sent to 38 countries in February 2009. Responses were received from 26 countries.
The Survey focuses on self-adjustment mechanisms. In the Survey, a self-adjustment mechanism is defined as a selection of predetermined measures set by law to be applied either immediately as required by a set of pre-determined indicators, or on a pre-determined schedule in order to restore the solvency or financial sustainability of pension systems. In particular, the definition above implies that such mechanism will be activated every time the system becomes insolvent and/or unsustainable. However, several countries have adopted ad hoc legislated measures that are expected to be applied within a limited time frame. Even if such mechanisms do not fall under our definition of a self adjustment mechanism, we still think that the existence of such measures is an important step in ensuring the solvency and sustainability of public pension systems. In the rest of the report we will refer to such mechanisms as "temporary". "Automatic" means that they are activated each time there is a need to restore the sustainability, while "temporary'" means that they are in place to solve existing sustainability issues.
The objectives of this Survey are to gain a better understanding of the existing or planned self-adjustment mechanisms for social security systems and employer provided pension plans, to share the practices existing around the world with ISSA member organizations, and to raise awareness of the importance of mechanisms in pension systems that help ensure the solvency and the sustainability of such systems.Report: