This paper uses a cohort microsimulation model to analyse intragenerational distributional effects of a shift from a defined benefit pay‐as‐you‐go pension system that includes flat rate component and length of pensionable service component to a pension system with contribution based...

The global financial crisis affected also Polish pension market. Low or negative rate return on pension capital accumulated in Open Pension Funds led to social disappointment and growth of feeling of social insecurity. Prolonged financial crisis together with sluggish economic growth forced...

We explore the implications of alternative methods of discounting future pension outlays for the valuation of funded pension liabilities. Measured liabilities affect the asset-liability ratio of pension funds and, thereby, their policies. Our framework for analysis is an applied many-generation...

This paper explores the introduction of collective risk-sharing elements in defined contribution pension contracts. We consider status-contingent, age-contingent and asset contingent risk-sharing arrangements. All arrangements raise aggregate welfare, as measured by equivalent variations. While...

We analyze a collective defined contribution pension fund which aims at intergenerational risk sharing among different age cohorts using a return smoothing mechanism. Using a utility based framework, we find that approximately one third of unexpected return shocks should be directly passed on to...

This paper demonstrates that the link between heterogeneity in longevity and lifetime income across countries is mostly high and often increasing; that it translates into an implicit tax/subsidy, with rates reaching 20 percent and higher in some countries; that such rates risk perverting...

The paper represents author’s research on efficiency on pension systems and effectiveness of state social care policies from the perspective of stability of life at the end of career ladder. It refers to the topic Work – Labor/Value, where former employees’ rights and the impact on...

The main aim of the study is to identify the size of the pension gap in Poland and to estimate the level of supplementary savings needed to cover it. The issue of pension system income adequacy is first discussed, and the forecasted and targeted levels of replacement rates in Poland are...

Pensions may be provided for in a modern society by a mix of several methods, namely by voluntary individual savings, mandatory fully-funded occupational pension systems, mandatory social security financed by pay-as-you-go, and old-fashioned hoarding in cash. Here, we call the specific mixture...

This chapter defines a universal public pension scheme (UPPS) as a government-mandated lifecycle longevity insurance scheme that transfers individual consumption from the working years to the retirement phase of the lifecycle. It discusses the differences in four UPPS designs defined with regard...