Title Page
TECHNICAL NOTES AND MANUALS
IMF Engagement on Pension Issues in Surveillance and Program Work
Prepared by teams from the Fiscal Affairs Department and the Strategy, Policy, and Review Department
The paper has benefited greatly from excellent comments from IMF staff and external reviewers, including Nick Barr, Alain Jousten, Philip O’Keefe, and Barry Herman, as well as staff of the ILO, OECD, and World Bank.
Copyright Page
©2022 International Monetary Fund
IMF Engagement on Pension Issues for Surveillance and Program Work
IMF Technical Notes and Manuals 2022/004
Fiscal Affairs Department and Strategy, Policy, and Review Department
| Approved by Vitor Gaspar and Ceyla Pazarbasioglu |
Prepared by a team led by David Coady (FAD), Zuzana Murgasova and Geremia Palomba (SPR), including Csaba Feher and Maura Francese (FAD), and Fei Liu, Gohar Minasyan, Kiichi Tokuoka, Ke Wang, and Irene Yackovlev (SPR); under the supervision of Michael Keen (FAD) and Guillaume Chabert (SPR); with administrative assistance provided by Liza Prado (FAD). |
| Approved by Vitor Gaspar and Ceyla Pazarbasioglu |
Prepared by a team led by David Coady (FAD), Zuzana Murgasova and Geremia Palomba (SPR), including Csaba Feher and Maura Francese (FAD), and Fei Liu, Gohar Minasyan, Kiichi Tokuoka, Ke Wang, and Irene Yackovlev (SPR); under the supervision of Michael Keen (FAD) and Guillaume Chabert (SPR); with administrative assistance provided by Liza Prado (FAD). |
DISCLAIMER: This Technical Guidance Note should not be reported as representing the views of the IMF. The views expressed in this paper are those of the authors and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
| ISBN: | 979-8-40021-121-8 (Paper) 979-8-40021-149-2 (ePub) 979-8-40021-175-1 (PDF) |
|
| JEL Classification Numbers: | H55, H68, I38, J11, J14, J18, J26, G23 | |
| Keywords: | Fiscal Policy, Social Protection, Pensions, Fiscal Sustainability, Defined Benefit, Defined Contribution | |
| Authors’ email addresses: | cfeher@imf.org (corresponding author) | |
| dcoady@imf.org | zmurgasova@imf.org | |
| gpalomba@imf.org | maura.francese@bancaditalia.it | |
| fliu@imf.org | gminasyan@imf.org | |
| ktokuoka@imf.org | kwang3@imf.org | |
| iyackovlev@imf.org | mickjkeen@gmail.com | |
| gchabert@imf.org | lprado@imf.org | |
| ISBN: | 979-8-40021-121-8 (Paper) 979-8-40021-149-2 (ePub) 979-8-40021-175-1 (PDF) |
|
| JEL Classification Numbers: | H55, H68, I38, J11, J14, J18, J26, G23 | |
| Keywords: | Fiscal Policy, Social Protection, Pensions, Fiscal Sustainability, Defined Benefit, Defined Contribution | |
| Authors’ email addresses: | cfeher@imf.org (corresponding author) | |
| dcoady@imf.org | zmurgasova@imf.org | |
| gpalomba@imf.org | maura.francese@bancaditalia.it | |
| fliu@imf.org | gminasyan@imf.org | |
| ktokuoka@imf.org | kwang3@imf.org | |
| iyackovlev@imf.org | mickjkeen@gmail.com | |
| gchabert@imf.org | lprado@imf.org | |
Contents
Executive Summary
Introduction
Pension Systems: Objectives and Features
A. Objectives
B. Typology and Basic Features
Assessing the Macro-Criticality of Pension Spending
A. Fiscal Sustainability
B. Adequacy of Pension Spending
C. Efficiency of Pension Spending
Incorporating Pension Issues into Country Work
A. General Considerations
B. Surveillance
C. IMF-Supported Programs
D. Dialogue with Country Authorities
Boxes
Box 1. Gender Aspects of Pension Provisions
Box 2. Actuarial Equilibrium, Neutrality, and Balance
Box 3. Point Systems and Notional Defined Contribution Schemes
Box 4. Definition of Public Pension Spending
Box 5. Benefit Adequacy at the Individual Level
Box 6. Examples of How to Address Pension Issues in Surveillance
Box 7. Examples of How to Address Pension Issues in IMF-Supported Programs
Box 8. Selected Examples of Communicating Policy Advice
Figures
Figure 1. Old-Age Income Security: Constituent Elements and Functions
Figure 2. Projected Change in Pension Spending, 2020–70
Figure 3. Higher Pension Spending vs Capacity to Finance
Figure 4. Per Capita Income vs Social Security Coverage
Figure 5. Growth Has Limited Impact on Coverage
Table
Table 1. Illustrative Questions on Pension Issues in Surveillance and Program Work
Annexes
Annex 1. Typical Pension Policy Reforms
Annex 2. Internal and External Resources Supporting Analytical Work and Policy Engagement