Chand, Sheetal K., and Albert Jaeger, 2000, “Reforming the PAYG System,” in: World Bank Primer on Pension Reform, (at: http://www.worldbank.org/pensions).
Disney, Richard, 1999, “OECD Public Pension Programs in Crisis: An Evaluation of the Reform Options,” in: World Bank Primer on Pension Reform (at: http://www.worldbank.org/pensions).
United Nations, 1999, World Population Prospects. The 1998 Revision. Volume II: The Sex and Age Distribution of the World Population.
Prepared by Albert Jaeger and Caroline Kollau.
See IMF Country Reports No. 96/47 and 98/67.
U.S. Social Security Administration (1999, pp. 225-27) provides a concise overview of Luxembourg’s social security system. A study published by the Economist Club Luxembourg (2000) summarizes the history of Luxembourg’s public pension system in an annex.
An OECD cross-country study of standardized gross pension replacement rates estimated a replacement rate for Luxembourg of 93.2 percent compared to an OECD average of 59.3 percent (1995 data). See Blöndal and Scarpetta (1998, Table II-3).
A civil service pension reform adopted in 1998 will-subject to a long transition period-reduce the more generous civil service pension benefits to the present levels of the private sector schemes.
The pension schemes for private sector workers are required to hold a contingency reserve equivalent to at least 1.5 to 2.5 years of benefits.
For simplicity, the contingency reserve is not incorporated in the budget constraint.