First published in 1948, the International Social Security Review is the principal international quarterly publication in the field of social security.
This article evaluates the pension policy pathways of the 11 former state socialist nations that have joined the European Union since 2004. Focusing primarily on the post‐2004 period, the analysis discusses the most important measurable outcomes of these countries’ pension reforms, in terms of poverty alleviation, pension adequacy and fiscal sustainability. Going beyond the quantifiable concepts, we also investigate the quality of the 11 countries’ pension systems in terms of equity as well as efficiency, emphasizing the less conspicuous design errors present in these systems. Although these errors have received little attention to date, they may harm pension schemes along several dimensions, including their fiscal sustainability.
To support the improved administration of social security programmes, this article presents a preliminary compliance risk management (CRM) model for social security institutions to use as a tool to help address the operational challenges of error, evasion and fraud. Within the model, error, evasion and fraud are collectively referred to as issues of non‐compliance. The model's framework addresses non‐compliance in an integrated manner with regard to the main functions of contribution collection and benefit administration. The model aims to facilitate tackling these important issues by better permitting the identified challenges to be prioritized and, thereafter, addressed based on the assessed severity of their impacts and the cost‐effectiveness of the selected responses. Three generic types of intervention are recommended to tackle non‐compliance worldwide: prevention, detection and deterrence. The article's objective is to contribute to ongoing work to develop an encompassing CRM framework for all social security systems.
Lower female lifetime labour market participation rates, greater interruptions during their working lives, and wage gaps contribute to create gender gaps in pensions at the time of retirement. The design of social security systems may reinforce or attenuate these gaps. This article provides new evidence on gender gaps in access to pensions and in pension income in four Southern Cone countries in Latin America and analyses their evolution between 2000 and 2013, showing significant improvements in both gaps, with differential patterns by countries. The decrease in the gender gap in pension income has been particularly significant in Argentina and Brazil. In both cases, the largest increases in pension values during the period correspond to the lowest income percentiles, where women are overrepresented. The application of redistributive policies in these countries, aimed at reducing poverty and inequality but not necessarily focused on gender equity, has had positive and probably unintended consequences in terms of reduction in gender gaps in pensions.
Across the OECD, public policies seek to support parents in achieving their desired work/life balance. This article introduces the background to and issues at stake in promoting equal partnerships in families in Germany. Families in Germany face considerable challenges to spending more time together and achieving a more gender‐balanced reconciliation of work and family life, as paid work hours for fathers are long on full‐time jobs and many women are in part‐time jobs. Family policy can play an important role and Germany has made substantial progress in supporting families ahead of and after the birth of a child. Important in this regard are the parental leave reforms of 2007 and 2015 and the extension of childcare supports that better enable fathers and mothers to combine work and family commitments. The article assesses recent developments in family policies in Germany while also drawing from the experiences of countries with longstanding policies to support work/life balance and strengthen gender equality.
More often than not, the existing modes of contribution collection and benefit payment of social security organizations are adapted to the collective arrangements that characterize employer‐employee relationships. Extending coverage to individuals in difficult‐to‐reach groups, however, may require new modalities of service that can cope with many separate, secure transactions rather than a few bulk data transfers between organizations. Recent developments in electronic payment show its wide applicability in enabling huge volumes of such individual transactions. It is in this light that the article explores the potentials of this technology and identifies possible arrangements through which electronic payments could surmount barriers that stand in the way of covering difficult‐to‐reach groups. The high level of mobile phone penetration on a global scale augurs well for using e‐payment mechanisms to collect social security contributions and to deliver social security benefits and services. A generic model is used to describe the requisite elements to implement electronic payments in social protection programmes. Based on empirical evidence of current social protection practices from around the world, five scenarios are presented to describe possible configurations for electronic payment, from the simplest to the most sophisticated. The broader objective is to contribute in a practical manner to the international commitment to extend social protection to all, as defined by the 2030 Sustainable Development Goals.
Georgia’s national social security system offers almost complete non-contributory basic pension coverage. The basic pension has, to date, proved effective in dealing with poverty. But Georgia’s fiscal constraints and ageing population also highlight the importance of improving the pension system, in order to ensure its sustainability. This article presents policy reform choices, which suggest that, in Georgia, pension reform might include increasing the statutory retirement ages and reducing the generosity of benefits through means testing. The case of the Georgian non-contributory basic pension might hold value for some low- and middle-income countries that are considering the implementation of, or expanding coverage under, a non-contributory pension programme.
In the first decade of transition, the Georgian social protection system experienced a major retrenchment as the government struggled to finance welfare provision in the face of massive economic contraction and the near collapse of public institutions. Since 2004, this trend has been reversed, with the economy returning to a fast growth path and public administration improving considerably. Recent reforms, including the notable introduction of universal public health insurance, are welcome steps towards building a modern welfare state. Major challenges still remain, however, especially in relation to the system’s limited effect on widespread poverty. Decelerating growth, the lack of strong pro-welfare actors, and the absence of positive external pull factors may stall or prevent future growth, but the changing nature of the social contract between the people and government, as well as Georgian politicians’ growing recognition of the importance of the welfare system for inclusive growth, leaves ample space for optimism.
In many countries the regulations governing survivors’ pensions were established in periods when female labour market participation was lower than at present. However, the current trend in many Latin American countries is for growing levels of female labour participation. In Brazil, where there are no restrictions on the concurrent receipt of retirement and survivors’ pensions, and where until recently lifelong pensions could be obtained without any conditionality, not only has the accumulation of such benefits grown, but there are indications that these rules have had a negative impact on women’s labour market participation. Analysis of the case of Brazil shows the need for social security regulations to adapt to labour market changes, and underlines the need to acknowledge that social security regulations can actually have an impact on the labour market.
The possession and use of a personal social security number helps to structure people’s daily lives. However, despite its fundamental normative importance, the social security number remains a little-known entity. Increasingly universal and yet diverse in form, it is a legal and technical norm which is as much a mechanism for surveillance and monitoring as it is a necessary instrument for giving effect to social rights. Analysis of this constituent element of social security systems permits as assessment of some of the technical difficulties presented by the ever-increasing movement of people and data. Overcoming these technical difficulties should permit to envisage a first technical step towards realizing a universal and global social security system.
As part of international efforts framed by the Sustainable Development Goals (SDGs) to extend sustainable and adequate social security coverage, social security systems are increasingly looking to deliver holistic policy responses that meet the different needs of people across the life course. To achieve these objectives globally, not only must the design and goals of social security programmes be recalibrated but significant investments in the health workforce are required. Yet, a fundamental challenge is the current and projected mismatch between the global supply, demand, and need for health workers. A number of critical issues require attention: the need for more and better investments in the health workforce; recognition that the health workforce is not gender neutral and that policies that appropriately recognize, value, and reward women’s work in health are of utmost importance; and that political will at the highest level and action across sectors is necessary to allow the required changes.
The development of social security policies and programmes raises the need for their coordination to enhance effectiveness as well as to prevent the fragmentation of social policies, programmes and services. Although there are expected benefits, implementing coordinated programmes poses significant technical challenges, which increase the complexities and costs of projects and hinder the achievement of such initiatives. Some of the main difficulties are related to system and information integration (Interoperability) as well as the ability to enforce data security and privacy regulations. To help meet such challenges, the International Social Security Association (ISSA) has developed Guidelines on Information and Communication Technology to support the integrated ICT-based implementation of social programmes. This article reviews existing scenarios, discusses the benefits and challenges of coordinated approaches, and offers models to show how to implement such types of systems while applying the ISSA Guidelines.
The concept of integrated services is a common feature of current social policy discussions. It is often argued that social support systems have not evolved to cope with the complexity of individuals’ needs. This is deemed true for a variety of interrelated difficulties that cut across traditional welfare programmes and life course lines. This article examines the efforts of integrated services to bridge policy areas such as social policy, labour market policy and health care services for four different vulnerable groups at major stages of the life course: childhood, youth, adulthood and old age. Analytically, the article adopts a framework developed by Valentijn et al. (2013) that allows systematic comparisons. Using mainly high-income economy examples, the article connects key features of a certain policy area with key elements of integrated services. Key features of a policy area direct attention to the function of the policy area, and these are expressed through the framework of “person-focused” and “population-focused” services. Key elements of integrated services in turn emphasize levels of integration (macro, meso, micro level). Central questions addressed are the character of integration efforts for vulnerable groups at different stages of the life cycle and how variations therein can be understood. As a complement, sociological explanations of individual vulnerability, which are separated by causes of vulnerability into basic, conditional and triggering factors, are also used. A main finding is that the life course perspective as such does not explain variation in integration efforts; rather, it is the institutional features of the specific policy areas. These constrain or promote the potential for greater integration.
The concept of nudge theory, from the fields of behavioural science, political theory and behavioural economics, has sparked government initiatives yielding significant public value. A nudge is a method for predictably altering behaviour without restricting consumer choice options or significantly changing incentives. Nudges work by leveraging default human behaviour such as the tendency to take the path of least resistance when exercising choice. Government agencies have run many successful trials with simple textual nudges designed to positively influence behaviours such as tax compliance, voter registration and student attrition. This article develops the concept of the digital nudge in social security administration. The digital nudge leverages predictive analytics technology within a digital government framework to support a social investment policy approach. Based on a literature review of nudges within a digital government context, the article identifies examples of innovation within social security administration where nudges are contributing to better social outcomes. At the same time, concerns regarding ethics and privacy are identified as nudges are applied at the individual rather than the population level. The use of data and personal information to drive the nudge process has to be managed in such a way that individual rights are protected. This requirement has to be reconciled with the broader interests of society in achieving affordable outcomes, the parameters of which are determined through the political process.
Social security systems around the world evolved at different times, at different speeds, for often very different needs. But now each country faces a universal truth: their social security organizations must be truly adaptive, ready to deliver a new type of service at a time of constant technological and social change. Each social security system is approaching this daunting task in their own way – a grand social experiment in how agencies can provide a proactive, personalized service that meets their citizens’ ever-changing needs. The results are simply unknown. This article intends to start the debate on what is and is not working, and indeed on how agencies should measure their progress in moving away from the traditional transactional model. The challenges they face are immense. Populations are ageing and social security budgets are shrinking. Meanwhile, the pace of digital change is matched only by the soaring rate of customer expectations. But the opportunities are of similar scale. Advanced technology, automation and new partnerships between public-sector agencies promise a much smarter, more insight-driven service for all. Technology is only one side of this equation. As part of rethinking their entire mission, social security agencies will need new workers with new sets of skills, and for their existing workers to adapt and embrace their changing roles. None of this will be straightforward. Whatever the original purpose of the social security organization, it has now changed irrevocably. But with the right combination of talent and technology, agencies can aspire to a new model: one that is flexible enough to withstand economic and social shock and resilient enough for the challenges that lie ahead.
The article summarizes four corridor studies on bilateral social security agreements (BSSAs) between four European Union (EU) members that were undertaken to assess their working and the establishment of benefit portability. BSSAs between migrant-sending and migrant-receiving countries are seen as the most important instrument to establish portability of social security benefits for internationally mobile workers. Yet, only about 23 per cent of international migrants profit from BSSAs and their functioning has been little analyzed and even less assessed. The four corridors studied (Austria-Turkey, Germany-Turkey, Belgium-Morocco, and France-Morocco) were selected to allow for comparison of both similarities and differences in experiences. The evaluation of these corridors’ BSSAs was undertaken against a methodological framework and three selected criteria: fairness for individuals, fiscal fairness for countries, and bureaucratic effectiveness for countries and migrant workers. The results for pension portability suggest that the investigated BSSAs work and overall deliver reasonably well on individual fairness. The results on fiscal fairness are clouded by conceptual and empirical gaps. Bureaucratic effectiveness would profit from information and communication technology-based exchanges on both corridors once available.
This 2016 special issue addresses the topic of excellence in social security administration. For the International Social Security Association, “excellence” is most usually associated with ensuring that the technical processes and administrative procedures that underpin the delivery of social security benefits and services are high-performing, well-governed and sustainable. But it also refers to the covered population’s perceptions of the quality and adequacy of the services and benefits provided. The academic literature on “social security” is immense, but the larger part of this published research addresses questions of social security theory and policy. The critical, analytical literature on social security administration, including that which marries theoretical analysis with the empirical evidence of administrative performance, is thus smaller. A major aim of this special issue is to make a contribution to redressing this imbalance. This is done not only to support and stimulate research that draws equally on empirical evidence and the theoretical literature, but in a very practical sense to better take into account and provide responses to the increasingly complex operational challenges facing social security administrations.
Canada, Denmark, the Netherlands and Sweden have advanced multi-pillar pension systems. Using micro-simulations, this article presents a close examination of the interaction of pillars in these countries. The relative importance and the role of the different pension pillars vary from country to country, and according to age, income, gender and socio-economic dimensions as well as between generations. A further area of investigation is the mitigation capacity of the four pension systems. On the one hand, adverse labour careers lead to lower life-time earnings and lower private pension accruals. On the other hand, these effects are mitigated through the design of pillars and their interaction. Mitigation is important to income security and stability in retirement and to post-retirement income distribution. However, mitigation mechanisms come at the cost of incentives. Moreover, in many countries, the generosity of public benefits is set to decrease – increasing the importance of private pensions. This will shift risk and uncertainty from employers and pension institutions to individuals. Thus, risks and uncertainties related to private pensions will become more important, raising questions about the division of responsibilities between public and private pensions, and about the potential of mitigating such risk through pillar interaction. These concerns are further reinforced by labour market changes. Although a pension system free of distortions is inconceivable, this article seeks to contribute to addressing how mitigation should be designed, and how mitigation and risk sharing should be balanced against incentives, challenges which are as much political as technical.
The United States is at a crossroads in its policies for families and women. Currently, the United States provides basic support for children, fathers, and mothers in the form of unpaid parental leave, child-related tax breaks, and limited public child care. In contrast, the other member states of the Organisation for Economic Co-operation and Development (OECD) empower families through paid parental leave and comprehensive investments in infants and children. The potential gains from strengthening these policies in the United States are enormous. Paid parental leave and subsidized child-care help to get and keep more women in the workforce, contribute to economic growth, offer cognitive and health benefits to children, and give parents options in defining their preferred work-life strategy. Indeed, the United States has been falling behind the rest of the OECD in many social and economic indicators by not adequately investing in children, fathers and mothers. Given the significant payoffs to these family supports, this article focuses on issues of reconciling work and care commitments for families with young children, and, in particular, on paid parental leave policies within the OECD and the United States.
The extension of social protection to all has become a central policy objective, both nationally and internationally. A considerable number of middle- and low-income countries have undertaken substantial efforts to extend social protection, while the international community reaffirmed its commitment to the extension of social protection through the adoption of the ILO Recommendation concerning National Floors of Social Protection, No. 202 (2012). This article reviews the legal provisions and the implementation of the Indian Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), legislated in 2005, and does so in the light of the more recent provisions of ILO Recommendation No. 202. Since its introduction ten years ago, MGNREGA has provided a source of income to rural workers, increased wage rates, achieved high female participation rates and created durable assets. India’s local governance bodies, Panchayati Raj Institutions (PRI), have been empowered and involved in the processes of planning and monitoring. However, despite successes, there have been considerable shortcomings in implementation. This article highlights two central themes: first, the innovative policy framework of the Act, which brings together rights-based entitlements, demand-driven employment, and citizen-centred monitoring. Second, it assesses the accessibility and adequacy of benefits in the implementation of MGNREGA. We conclude that MGNREGA offers potential for South-South learning, both in terms of policy-design and implementation.
Since 1981 close to forty countries have introduced systemic pension reforms that have replaced all or part of prior pay-as-you-go (PAYG) schemes with privately managed funded defined contribution (FDC) pillars or systems. However, over the past decade about half of these countries have subsequently cutback on, or entirely eliminated, these FDC schemes. In this article we explore some of the reasons why this reversal is often taking place in developing countries. As part of our analysis we propose a new pension reform typology that goes beyond the commonly used dichotomy between PAYG and pension privatization. We identify and discuss four factors that are of particular relevance to those seeking to understand the pension policy reversals that have been taking place in many developing countries: low pension coverage and incentive incompatibility, triple burden costs, tradeoffs between pension reforms and social pensions, and difficulties with annuitization.