First published in 1948, the International Social Security Review is the principal international quarterly publication in the field of social security.
286 results found
The PAYG system and the optimal redistribution instrument in an overlapping generation model
Authors:
Vanesa Valeria D’Elia
Issue:
Volume 69 (2016), Issue 2
Using a two-period overlapping generation (OLG) model, this article seeks to identify the optimal redistribution policy instrument in terms of aggregate welfare when agents differs according to their labour condition. We use five policy specifications: (i) early redistribution to the young informal generation; (ii) late redistribution to the informal old generation; (iii) a mix between early and late redistribution; (iv) redistribution from the current formal young generation to the current formal old one; and (v) a non-redistribution scenario. With inelastic labour supply, we show that transferring to the young performs better as a redistribution policy. This result is robust across different parameter values.
Topics:
Old-age pensions
Actuarial
Keywords:
income redistribution
actuarial
Countries:
Argentina
Nepal’s Child Grant: A mixed-methods assessment of implementation bottlenecks
Authors:
Richard Mallett
Issue:
Volume 69 (2016), Issue 1
This article evaluates the implementation of the Child Grant, one of the major social protection interventions in Nepal, and identifies bottlenecks that limit its ultimate effectiveness. On the whole, while delivery works for many beneficiaries, we found inconsistencies between the way the policy is laid out on paper, and the way it is actually implemented. Targeting efficiency is high, despite the wealth targeting criterion not being applied in practice. Owing to informal awareness-raising campaigns, beneficiaries’ knowledge on registration, eligibility and entitlement is patchy. Payment levels vary and tend to be infrequent. These implementation bottlenecks limit the Grant’s effectiveness and temper some of its impact potential.
Topics:
Family benefits
Keywords:
benefit administration
cash benefit
claim procedure
registration procedure
eligibility
children
Countries:
Nepal
Pension reforms in Chile and social security principles, 1981–2015
Authors:
Carmelo Mesa-Lago
Fabio Bertranou
Issue:
Volume 69 (2016), Issue 1
Chile pioneered in Latin America not only the introduction of social security pensions, but the structural reform that privatized them and a process of “re-reform” implementing key improvements. A Presidential Commission in Chile, appointed in 2014 to evaluate reform progress and remaining problems in the pension system, released its report in September 2015. In light of the Commission’s findings, the article assesses Chile’s compliance with International Labour Organization social security guiding principles: social dialogue, universal coverage, equal treatment, social solidarity, gender equity, adequacy of benefits, efficiency and affordable administrative cost, social participation in management, state role and supervision, and financial sustainability. The exercise follows three stages: the structural reform (1981–2008), the re-reform (2008–2015), and the Presidential Commission proposals (2015)
Keywords:
pension scheme
social security reform
ILO Convention
Countries:
Chile
Social security reforms in Kenya: Towards a workerist or a citizenship-based system?
Authors:
Daniel Künzler
Issue:
Volume 69 (2016), Issue 1
With social security provisions in Kenya remaining under-reported in the more recent literature, this overview covers recent reforms in key areas of the country’s social security system. In the health sector and in old-age pension provision social security is still mainly workerist (biased toward those in formal employment), and attempts to expand coverage have had limited effect only – cash transfer programmes, for instance, have been expanded but in practice they do not universally cover the entitled categories. Thus, although the Kenyan social security system now has a considerable pro-poor social assistance component it remains biased toward those in formal employment, to the benefit of the highest income quintile.
Topics:
Health
Old-age pensions
Social assistance
Keywords:
coverage
social policy
provident fund
social insurance
social assistance
Countries:
Kenya
Adjustment mechanisms and intergenerational actuarial neutrality in pension reforms
Authors:
Mar Devesa
Enrique Devesa
Borja Encinas
Robert Meneu
Inmaculada Domínguez
Issue:
Volume 69 (2016), Issue 1
In the context of the reform of defined benefit pension systems under population ageing, we focus on the introduction of automatic adjustment mechanisms linked to life expectancy. Our goal is to establish a relationship between changes in the key parameters of the pension system and changes in life expectancy, applying the principle of intergenerational actuarial neutrality. For a defined benefit pension scheme, we first obtain the fundamental adjustment equation and then, for particular cases, we derive different designs of automatic adjustment mechanisms depending on the involved parameter. We include a numerical application only for illustrative purposes.
Topics:
Old-age pensions
Actuarial
Keywords:
pension scheme
defined benefit plan
actuarial
life expectancy
Regions:
Europe
International
Health care privatization processes in Europe: Theoretical justifications and empirical classification
Authors:
Philippe Batifoulier
Mariana Jansen-Ferreira
Christine André
Issue:
Volume 69 (2016), Issue 1
This article analyses the health care system reform process in Europe based on the concept of privatization. This notion is understood from two perspectives. First, privatization may concern the health care financing or the provision of health services. Second, privatization can be “imposed” on individuals or be “internalized” and then introduced by individuals (patients and doctors). So we emphasize the diversity that privatization can assume. We classify privatization mechanisms used by different countries and identify which of the perspectives presented are more common in 14 European Union countries since the 1980s. The article shows that even if privatization processes are widespread, they assume different patterns in each country.
Topics:
Health
Keywords:
health policy
privatization
social security administration
Regions:
Europe
Social health insurance development in Mongolia: Opportunities and challenges in moving towards Universal Health Coverage
Authors:
Dorjsuren Bayarsaikhan
Dashzeveg Chimeddagva
Soonman Kwon
Issue:
Volume 68 (2015), Issue 4
Mongolia achieved high population coverage under mandatory health insurance relatively quickly. This fact was viewed by policy- and decision-makers as a central issue for health financing reform in Mongolia. Health insurance brought many new features for health service planning, provision, funding and resource management. Based on initial achievements, health insurance came to be strategically considered as the vehicle for achieving universal coverage. The article analyses developments in Mongolia's health insurance over the last decade along with the core policy dimensions of Universal Health Coverage. It examines various reform approaches and the numerous amendments to laws that have been implemented during this period and discusses new opportunities as well as challenges. The analytical review and findings discussed suggest that Mongolia has a need for evidence-based policy decisions and informed political support, with health insurance backed by robust institutional and administrative capacities. More generally, it also emphasizes that health policy goals and objectives can be attained by strengthening and making transparent and publicly-accountable all health system financing functions and arrangements. The policy analysis, experiences, lessons and proposed strategies presented with regard to Mongolia intend to stimulate wider discussions on health insurance development as well as promote continuing focused research on specific aspects of health insurance and public financing reform.
Topics:
Health
Keywords:
health insurance
health policy
coverage
universal benefit scheme
Countries:
Mongolia
Including informal economy workers in contributory social protection: Current challenges in Latin America
Authors:
Ana Sojo
Issue:
Volume 68 (2015), Issue 4
Owing to a favourable economic situation and to national labour market and social protection policy reforms, Latin America has witnessed significant progress in social protection coverage extension. Some countries, however, have seen weaker progress, with stagnant coverage levels. Several factors underlie the extension of pensions and health care coverage and the increased formalization of the labour market: substantial improvements in the quality of employment, more flexible eligibility criteria for contributory coverage, and the strengthening of the supervisory and regulatory roles of the State. This article first addresses the link between social protection and informality in Latin America to show the relationship between informal labour markets, the lack of social protection and the scale of unpaid contributions. Also highlighted is regional progress in extending social protection as a result of labour market formalization. Countries in the region have used various policies to encourage formalization and these have also helped to reduce wage inequalities, since formalization has had especially beneficial effects on low-income sectors. Finally, we discuss controversial and diverging views on social protection financing in the region. These views tend to favour non-contributory over contributory financing mechanisms and support proposals for limited coverage, but do not address the stratification of access to social protection. The move towards the alignment of benefits is deemed essential: strategies to universalize social protection in the region should not focus exclusively on increasing resources, but must address their form given that institutional change is a crucial part of the locus of innovation
Topics:
Health
Old-age pensions
Extension of coverage
Keywords:
informal sector
social protection
contributions
non‐contributory scheme
social security financing
eligibility
health insurance
pension scheme
Financing social security out of contributions: About origins, present discussions and prospects of a success story
Authors:
Wolfgang Schulz
Issue:
Volume 68 (2015), Issue 4
In writing the overture to an issue on contribution financed social security one cannot but speak of Bismarck; it must also address Beveridge who saw contributions, although in their design and role clearly differently from Bismarck, as one core revenue tool to finance his vision. Beveridge attributed to the private financial sector a prominent role in securing people against the negative effects on income of shocks and crises, while Bismarck did not. Beveridge's concept, when first published, had, and still has today, the most attractive charm of rigorously satisfying peoples' striving for equitable and inclusive societal solutions. Bismarck's concept intrinsically offers income security only to those who contribute, while the level of protection depends on the level of contributions paid (with the exception of health insurance). In reality, both concepts, where implemented, had to face the realities of socio-economic and political developments: Beveridge's vision was achieved in respect of access to health services where his proposal, in its predominantly tax-financed version, has since turned into a worldwide blueprint for health schemes; in its other components, it was not resilient enough to achieve the intended standards and now is replete with means-tested (poor relief) elements. Bismarck's scheme has proven its potential to achieve "universality", not necessarily by theoretical design but as a matter of fact, i.e. covering people from cradle to grave (like Beveridgean schemes). With globalization, schemes of both origins have had to face massive neoliberal attacks over the last three decades. Which of the approaches is best able to survive must be left an open question: in the current worldwide context of rapid change, both have weak and strong points, and whether a symbiosis of the two offers the answer to future challenges remains to be seen.
Topics:
Social policies & programmes
Keywords:
contributions
social security financing
history
Regions:
International
Contributions-financed cash benefits: Selected examples of tiered pension systems
Authors:
Marco Geraci
Issue:
Volume 68 (2015), Issue 4
This article addresses the link between pensions and occupational earnings using the example of social security contributions in selected OECD countries. The rules of the pension schemes studied point towards a very strong link between occupational earnings and pension level. However, certain pension calculation methods, through pension calculation parameters or through the existence of tools to compensate for certain career discontinuities, may distort this link in the majority of the countries studied. Therefore, the examination of pension calculation parameters and of solidarity measures attached to retirement is necessary to provide a more finely-tuned evaluation of the link between occupational earnings and pension level. Ultimately, comparison of pension systems across countries remains challenging given their specificities.
Topics:
Old-age pensions
Keywords:
social security scheme
contributions
pension scheme
private pension scheme
occupational pension scheme
Social security contributions: Economic and public finance consideration
Authors:
Kees Goudswaard
Koen Caminada
Issue:
Volume 68 (2015), Issue 4
Social security contributions make up around a fourth of total tax revenue in OECD countries. However, there are concerns on the economic effects of high levies on labour. Recent studies suggest that at least a third of taxes on labour are shifted onto employers, leading to higher wage costs. We find substantial evidence in the literature that the nature of social security contributions matters. With a clear connection between contributions and rights, the employee will perceive this contribution as a price and not as a tax. As a consequence, these contributions will be less distortive in terms of labour supply, wage costs and private savings.
Topics:
Employment
Keywords:
social security scheme
contributions
taxation
labour market
saving
The multidimensional adequacy of social insurance benefits and insurability
Authors:
Daniel Gottlieb
Issue:
Volume 68 (2015), Issue 3
In this article the adequacy of social insurance benefits is addressed from the perspective of eight fundamental goals of social insurance. With respect to these goals, the legislated level of the benefit and other conditions represent tools to achieve adequate levels of benefits vis-à-vis contributory effort. The goals address income risks of various sorts: (i) income compensation; (ii) securing a decent standard of living; (iii) universality, implying simplicity and a high takeup of social rights; (iv) reducing income risk deriving from physical incapacity; (v) safeguarding insurability by balancing the expected payoff to the insured and the value of the contributions paid over the lifetime; (vi) intergenerational equity; (vii) containing work and savings disincentives; and (viii) risk reduction (prevention). A simple model serves to clarify what is needed to achieve benefit adequacy together with insurability and contribution adequacy. An example of income support in working age, based on Israeli data, illustrates the use of specific instruments to achieve a decent standard of living while containing economic disincentives. The example stresses the importance of synchronizing efforts with institutions outside the social insurance system.
Topics:
Social policies & programmes
Keywords:
social insurance
adequacy
benefits
contributions
insured persons rights
standard of living
Regions:
International
Introduction: Proceedings of the ISSA 2014 International Research Conference
Authors:
Daniel Gottlieb
Simon Brimblecombe
Ian Orton
Issue:
Volume 68 (2015), Issue 3
The 2014 Research Conference of the International Social Security Association (ISSA), which offered a platform for discussion and analysis among social security administrators and academia, addressed issues concerning the adequacy and sustainability of social security. Core issues discussed were the definition and measurement of adequacy and the contribution of social security systems to social and economic development. Also addressed were "megatrends", including demographic ageing and climate change, and their impacts on social security systems. As an objective, the conference sought to evaluate the implications of these issues for social security administrations and, on the basis of national good practice and new research findings, to identify measures permitting future adaptation and innovation.
Topics:
Governance and administration
Demographic change
Shocks & extreme events
Keywords:
social security administration
social development
economic development
research
Regions:
International
A model for universal social security coverage: The experience of the BRICS countries
Authors:
Mridula Ghai
Issue:
Volume 68 (2015), Issue 3
The BRICS countries have made important progress in extending social security coverage. However, much remains to be achieved to realize the goal of comprehensive universal social security protection. Using policy experiences from the BRICS, the article explores the possibility of drawing from existing models of social security provision to design effective policy interventions for universalizing social security. Main principles of a framework for bridging the coverage gap are identified. These principles are then placed in complimentary and supplementary relationships to develop a framework for policy interventions to bridge the social security coverage gap and achieve universal social security.
Topics:
Extension of coverage
Keywords:
coverage
model
social security administration
Countries:
Brazil
China
India
Russian Federation
South Africa
Supporting jobseekers: How unemployment benefits can help unemployed workers and strengthen job creation
Authors:
Ekkehard Ernst
Issue:
Volume 68 (2015), Issue 3
The rapid rise in unemployment since 2008 caused by the global financial crisis has created renewed interest in the effects of well-designed unemployment benefit systems on the speed at which labour markets recover and job creation resumes. On the basis of a newly-created database on labour market flows, this article makes use of a micro-founded macroeconomic model to estimate different effects of active and passive labour market spending on employment growth and the state of public finances. It demonstrates, in particular, that for the average G20 country, spending on unemployment benefits yields employment gains both in the short term and long term that are superior to those observed for active labour market policies. Moreover, rather than tightening their budgets prematurely, G20 countries would have fared much better in accepting further deterioration in public finances stemming from higher spending on social transfers in order to stimulate faster employment growth, which would have led to a more rapid recovery in the state of public finances as well.
Topics:
Employment
Keywords:
unemployment
unemployment benefit
employment creation
Regions:
International
Benchmarking administrative expenditures of mandatory social security programmes
Authors:
Oleksiy Sluchynsky
Issue:
Volume 68 (2015), Issue 3
This article offers a framework for the comparison and benchmarking of administrative expenditures of mandatory pension schemes as part of national social security provisions. It presents results of a quantitative analysis that builds on a framework developed around the extensive body of literature on both public and private pension programmes surveyed as part of this analysis. Our dataset includes over 100 observations and a broad set of explanatory variables. We developed and compared a number of standardized cost indices discussing their advantages and limitations. We also discuss major cost components and their shares in total programme costs. The regression analysis explains over 90 per cent of variation in administrative expenditures. It confirms some of the hypotheses expressed in the earlier studies and presents new evidence of driving factors for costs. We developed three different specifications for statistical analysis. The first set looks at the impact of design of a programme on total costs. The second group of specifications assesses differences in costs of managing pension liabilities between the public and private mandatory pension schemes. Finally, on the basis of the third model we generate benchmarks for staffing levels and for the total administrative expenditures, providing guidance for policy analysis and recommendations. Notably, the spread between low and high benchmark estimates for programmes of the same size and operating in the same economic environment can be four-fold and is driven by parameters of design and operation (for example, asset management function, in-house collection, or operation of special supplementary schemes). Therefore, inferences about the level of administrative expenditures should always be done keeping in mind the institutional context for each programme.
Topics:
Old-age pensions
Keywords:
administrative cost
social security administration
pension scheme
Regions:
International
Convergence or divergence? How the financial crisis affected European pensioners
Authors:
Aaron G. Grech
Issue:
Volume 68 (2015), Issue 2
The Member States of the European Union entered the financial crisis with very different pension systems. Although the use of standard adequacy measures suggest small impacts from the crisis, alternative measures based on pension wealth estimates indicate stronger effects. While the largest continental systems were left relatively unscathed by the crisis, Mediterranean systems were cut back significantly. This should lead to considerable convergence in system generosity across countries. Despite the cuts, state pensions in the stressed economies should still be generous enough to keep the majority of pensioners out of relative poverty, but this depends on a relatively quick turnaround in labour market performance in these countries.
Topics:
Old-age pensions
Shocks & extreme events
Keywords:
old-age benefit
retirement
poverty
economic recession
Little cash to large households: Cash transfers and children’s care in disadvantaged families in Ghana
Authors:
Keetie Roelen
Emily Delap
Helen Karki Chettri
Issue:
Volume 68 (2015), Issue 2
Social protection is widely considered to have a positive effect on children, including supporting improvements in nutritional, educational and health outcomes. Much less is known, however, about the impact of interventions on children's care. This article considers the impact of a social cash transfer targeted at poor households – Ghana's Livelihood Empowerment Against Poverty (LEAP) programme – on child well-being, quality of care and preventing children's separation from their parents as perceived by programme and non-programme beneficiaries in a context of vulnerability, large households and widespread informal kinship care. Findings suggest that cash transfers can improve both material and non-material aspects of well-being and contribute to the quality of care and have the potential to prevent children's separation from their parents. At the same time, not all children appear to benefit equally, with non-biological children being disadvantaged. The combination of large household sizes with programme design and implementation challenges, including low transfer amounts, a cap on the maximum number of eligible household members and poor sensitization and follow-up, undermine the positive role that cash transfers can play.
Topics:
Family benefits
Social assistance
Keywords:
children
child care
cash benefit
household income
poverty
wellbeing
Countries:
Ghana
Reforming against all odds: Multi-pillar pension systems in the Czech Republic and Romania
Authors:
Stefan Domonkos
Dragos Adascalitei
Issue:
Volume 68 (2015), Issue 2
Attempts to replace pay-as-you-go pension schemes with private funded systems came to a halt in Central and Eastern Europe after 2005. However, more recently, the region has witnessed two belated reformers: the Czech Republic and Romania. Both countries decided to partially privatize pensions despite the rising tide of evidence concerning the challenges associated with the policy. We argue that while part of the domestic political elite remained supportive of private funded pensions, the difficulties experienced by earlier reformers and reduced support from International Financial Institutions led to the adoption of small funded pension pillars. Such cautious attempts at privatization might become more common in the future as large reforms have proven politically unsustainable.
Topics:
Old-age pensions
Keywords:
pension scheme
privatization
social security reform
Countries:
Czechia
Romania
Longevity insurance annuities: China adopts a benefit innovation from the past
Authors:
Tianhong Chen
John A. Turner
Issue:
Volume 68 (2015), Issue 2
Longevity insurance annuities are deferred annuities that begin payment at advanced older ages, such as at age 80. Such annuities would benefit some older retirees who have drawn down their savings, but the private sector has problems in providing them. Originally, social insurance old-age benefits programmes in some countries were structured as longevity insurance programmes, with 50 per cent or less of those entering the workforce surviving to receive the benefits. Over time, however, as life expectancy has improved, the benefits these programmes provide have slowly transformed into benefits that most people entering the workforce ultimately receive. This article argues that the reintroduction of longevity insurance benefits as part of social insurance old-age benefit programmes could be an important policy innovation, in particular because this benefit is generally not provided by the private sector. China has introduced longevity insurance benefits as part of its social insurance system, offering a model for other countries, particularly those providing modest social insurance old-age benefits.