Front Matter Page
Fiscal Affairs Department
Authorized for distribution by Michael Keen
Contents
I. Introduction
II. The Social Security Reform Proposal
A. Summary
B. PRA
III. Pensions: the Basics
A. Longevity Risk and the Role of Annuities
B. The Notion of Actuarial Neutrality
C. Defined Benefit and Defined Contribution Plans
D. PAYG and the Accounting of Public Pensions
E. Why Public Intervention?
IV. Pension Reform and PRA
A. Demographics and PAYG
B. Individual Savings and Returns
C. Increased Aggregate Savings
D. Accounting for Private Sector Pensions
E. Accounting for Public Sector Pensions
V. Further Design Issues
A. The Problem of Early Retirement
B. Economics of Guarantees
C. Who Guarantees Private Sector Pensions?
D. What About Inflation Risk?
VI. Concluding Comments
Tables
1. Total Fertility, Under Different Scenarios
2. Life Expectancy at Birth, 2000–05 and 2045–50
References