The ABCs of nonfinancial defined contribution (NDC) schemes

Nonfinancial defined contribution (NDC) pension schemes have been successfully implemented since the mid‐1990s in a number of European countries such as Italy, Latvia, Norway, Poland and Sweden. The NDC approach features the lifelong contribution–benefit link of a financial defined contribution (FDC) personal account scheme, but is based on the pay‐as‐you‐go (PAYG) format. At its start out, the PAYG commitments of the preceding defined benefit (DB) system are converted into individual personal accounts, allowing for a smooth transition from the DB to the DC format, while avoiding the very high transition costs inherent in a move from a traditional PAYG DB scheme to a fully funded FDC scheme. The NDC approach implemented by the rule book is able to manage the economic and demographic risks inherent to a pension scheme and, by design, creates financial sustainability. As in any pension scheme, the linchpin between financial stability and adequacy is the retirement age; in the NDC approach the individual retirement age above the minimum age is by design self‐selected and by incentives should increase the effective retirement age in line with population ageing. As a systemic reform approach NDC has become a strong competitor to piecemeal parametric reforms of traditional nonfinancial DB (NDB) schemes. While frequent, these reforms are far from transparent and usually too timid and too late to create financial sustainability while providing adequate pensions for the average contributor. This article offers a largely non‐technical introduction to NDC schemes, their basic elements and advantages over NDB schemes, the key technical frontiers of the approach, and the experiences of NDC countries.     

Notional defined contribution pensions with public reserve funds in ageing economies: An application to Japan

Several developed and developing countries have recently adopted a notional defined contribution (NDC) approach to old‐age pension reform. The NDC is essentially a non‐pre‐funded defined contribution retirement system, in which contributions are credited with a “rate of return” related to aggregate payroll growth, and individual account accruals are maintained in a book‐keeping system. Payouts are annuitized based on the expected mortality of each succeeding retiring cohort. NDC plans may be identified with appropriately calibrated Pay‐As‐You‐Go plans in demographic equilibrium, but the two paradigms diverge when demographic shift is introduced. This paper investigates the key actuarial and economic implications of alternative NDC rules, with a particular focus on Japan, the world's most rapidly ageing economy. We examine the potential role for pension reserves in transitioning to an NDC system, and we show these can be used to smooth the impact of demographic transition to an older society. Finally, we show that countries such as Japan could elect to use pension reserves accumulated in the past to facilitate the transition to an NDC system.     

Towards an adequate and sustainable replacement rate in defined benefit pension systems: The case of Spain

The main objective of this article is to determine, based on internal data, replacement rates for a defined benefit pension system, with two aims: the adequacy of pensions – measured in terms of the expenditure of retirees – and the sustainability of the system. For this purpose two instruments are used: the internal rate of return, and techniques based on systems of notional accounts. These figures, derived from internal data, will serve, by comparison with the replacement rate of the system, to assess whether the system tends more towards adequacy or sustainability. The system studied is that of Spain.     

殷周金文实词虚化研究

殷周金文中的一些实词虚词并见现象,为探讨上古汉语实词虚化提供了很好的参证语料。从词义虚化的路线看,有经历了动词→介词→连词发展过程的,如暨、及、以、用;有经历了动词→介词发展过程的,如于、在、从;有经历了动词→时间副词→范围副词发展过程的,如咸;有经历了动词→时间副词→关联副词发展过程的,如既;有经历了动词→范围副词发展过程的,如具;有经历了动词→频率副词发展过程的,如復;有经历了否定动词→否定副词发展过程的,如亡、无。     

Political risk and pension privatization: The case of Argentina (1994-2008)

Proponents of pension privatization in Latin America argued that systems of private fully pre-funded defined-contribution individual accounts would be better insulated from politics than was the case with public pay-as-you-go pension systems. However as the Argentinean case demonstrates, most recently with the 2008 nationalization of its private individual accounts system, transferring pension management and investment to the private sector does not necessarily reduce or eliminate political risk. In fact, the implementation of systems of individual accounts creates a new set of political risks, in part because they are a potential financial resource for governments, especially during times of economic stress. This article describes the range of political risks inherent to individual account pension systems, with specific reference to Argentina's 1994-2008 experience with privatization.     

When Knowledge Is Not Enough: Elements to Strengthen Intercultural Sensitivity Among Professionals of Social Services in Andalusia (Spain)

ABSTRACT.

This study examines social services delivery in Andalusia, Spain, to determine the degree of cultural adaptation of its workers, given the important migratory flows taking place in the region during recent years. This study investigates the main characteristics of those workers with a high level of intercultural sensitivity (IS) and their cultural competences. The survey included 298 professionals with a validated IS scale along with questions related to the degree of intercultural contact and competence. A series of scales for the IS levels was created, and correlation analyses were carried out depending on the variables used. Results revealed high levels of self-attributed cultural competence and training as well as low levels of awareness and motivation for intercultural encounters. Theoretical knowledge appeared to be the only aspect in correlation with all dimensions of IS. Important deficits have been also observed when examining the type and intensity of contact among professionals and people of foreign origin. This highlights the need to transform knowledge in culturally adapted responses. Future research is necessary to deepen knowledge on how these aspects affect professional interventions.     

Social security contributions: Economic and public finance considerations

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.     

Foster fathers: their experiences and contributions to fostering

The paper reports some of the findings of an exploratory study that looks at foster fathers’ experiences of fostering and discusses their routes into foster care and their perspectives on their roles and tasks. The study collected quantitative and qualitative data by approaching all foster fathers registered with a single independent fostering agency based in south‐east England. They were asked about their personal and professional attributes, and their experiences of and views concerning the role of a foster father. The study discusses the foster fathers’ motivation to foster, and argues that what they see as the benefits and drawbacks of fostering, and how it fits into their own family lives, are all relevant to improving service recruitment, delivery and retention. The study produced some evidence about the distinctive and positive contribution that foster fathers see themselves making to the lives of the children they foster. Further research is needed to refine our knowledge of what this contribution may be. Such knowledge could potentially develop our understanding of the roles of fathers in child development more generally as well as fine‐tuning practice in matching what particular placements have to offer to the needs of individual children.     

Kinship care in Spain: messages from research

Kinship foster care has experienced significant growth within the Spanish child protection system and now carries considerable weight. Over 40% of children in the public care system are formally fostered by relatives, equalling, and in some areas exceeding, the percentage of those in residential homes. This increase is not the result of a pre‐designed global programme or clearly pre‐established objectives in the system itself. Its current weight within the system has made it the focus of attention of researchers, politicians and protection system practitioners alike. The results of research carried out in Spain have revealed more positives than negatives in this type of fostering, giving rise to an in‐depth reflection on care systems, questioning the determinism of theories anchored in the intergenerational repetition of abuse and making room for perspectives more associated with resilience and children's rights. Positive results are related to fewer breakdowns, more stability, permanency beyond the age of 18, children agreeing with their placement, academic results similar to those with non‐relatives and better results after leaving care. The negatives relate to the lack of economic, educational and psychosocial support, which generally goes with this type of fostering. The experience of support programmes for these placements contributes to the debate.     

A strong (Ross) characterization of multivariate risk aversion

Using the addition of uncorrelated noise as a natural definition of increasing risk for multivariate lotteries, I interpret risk aversion as the willingness to pay a (possibly random) vector premium in exchange for a reduction in multivariate risk. If no restriction is placed on the sign of any co-ordinate of the vector premium then (as was the case in Kihlstrom and Mirman's (1974) analysis) only pairs of expected utility maximizers with thesame ordinal preferences for outcomes can be ranked in terms of their aversion to increasing risk. However, if we restrict the premium to be a non-negative random variable then comparisons of aversion to increasing risk may be possible between expected utility maximizers withdistinct ordinal preferences for outcomes. The relationship between their utility functions is precisely the multi-dimensional analog of Ross's (1981)global condition forstrongly more risk averse.     

Projected spending on pensions in Spain: A viability analysis

The viability of pay-as-you-go retirement pension schemes, such as that of Spain, remains a subject of ongoing debate. In this article we shall attempt to demonstrate that demography is the key variable that determines a system's viability. Analysis of several predictive studies conducted in the country shows that many of their predictions have been erroneous and their findings overpessimistic. This is because their forecasts were based on projections for the resident population, and overlooked the magnitude of the recent phenomenon of immigration. If the current influx of migrants continues, the problem of viability can be resolved.     

Recent Changes in Adoption and Fostering in Spain

As in many other countries, adoption and foster-care have seenimportant changes in Spain. Adoption of healthy Spanish babieshas now become the exception, while special needs and inter-countryadoptions have become much more common. Foster-care, in itsturn, has also changed, and now there are new types of fosteringarrangements and new professional practices substituting oldones. This article presents a summary of the main changes thatoccurred in recent years in the context of adoption and foster-carein Spain.     

Voluntary improvements to social security in Spain: Current legal standards and jurisprudence

This article presents a general overview of "voluntary improvements" as one form of voluntary social provision within the Spanish social security system. To this end, the article analyses different forms of voluntary improvements from both a legal and a jurisprudential perspective. Particular attention is given to problems that are a major source of conflict. In line with employment practice, voluntary improvements are articulated through collective bargaining. Although intended to encourage private initiative in matters of social provision, such improvements are nonetheless guided by the social security system, not least as a means to control both funding and procedure.     

In Their Own Words: Elements of Youth Empowerment in Spain

Abstract

The aim of the HEBE¹ project, developed jointly by four universities, is to analyze the spaces, moments and processes involved in the empowerment of young people in order to formulate socio-educational programmes that help them and improve their lives. The articulation of the project focuses on different lines of work and action, one of which is to identify and analyze the spaces in which the empowerment of youth occurs. This article delves into the elements involved in youth empowerment by using a questionnaire administered to young people from Catalonia between the ages of 19 and 25 (n?=?1067). This article presents the results obtained for these young people based on their level of empowerment and the elements that characterize them.     

Squaring the welfare circle and government ideology: Greece and Spain in the 1990s

This article examines the squaring the welfare circle thesis and its usefulness to our understanding of welfare developments in Greece and Spain in the 1990s. The welfare state in both Greece and Spain was expanded considerably in the early 1980s by the newly elected socialist governments, only to hit the buffers of diminishing resources and rising demands in the late 1980s as well as the hostile neo-liberal welfare ideology. The process of welfare expansion was halted in the 1990s, labour market deregulation was encouraged and containment of welfare expenditure became the dominant aim of government policies. This article concentrates on the actual policies of governments in the 1990s rather than on the rhetoric of political parties. It concludes that governments of both the Left and the Right in both countries attempted to square the welfare circle mainly through reductions in the supply of welfare. This general conclusion is country-specific and may not apply to other countries involved in welfare restructuring. While recognizing the significance of institutional factors to welfare reform, the article concentrates on the outcomes of reforms rather than on the political process leading to them.     

Means Testing and the Heterogeneity of Housing Assets: Funding Long-Term Care in Spain

The access to publicly funded long‐term care (LTC) in Spain has been traditionally rationed through the use of means tests based on individuals’ current income and needs. However, individuals’ wealth, primarily housing assets, is progressively taken into account. Parallel to this feature, the responsibilities for the organization of LTC services have been devolved to region‐states – autonomous communities (ACs), giving rise to some regional heterogeneity, though limited evidence has been reported on the underlying determinants. This paper examines the current role of housing assets in determining public and private funding for long‐term care in Spain. Secondly, we present a qualitative and quantitative examination of the regional heterogeneity in the provision and public funding criteria determining eligibility for public support for LTC. Finally, we report survey evidence on the individual's willingness to sell (WTS) their housing assets in order to either totally or partially finance the access to LTC. Our findings suggest that housing assets are the main source of wealth accumulation at old age. Yet there is significant regional heterogeneity in the access to LTC resulting from regional differences in the means testing criteria. Progressively, all ACs are considering housing assets in their means testing criteria. Interestingly, individuals’ willingness to sell their housing assets declines with age and is more common among less skilled and widowed individuals.     

Climate change: social workers' roles and contributions to policy debates and interventions1

Dominelli L. Climate change: social workers' roles and contributions to policy debates and interventions Int J Soc Welfare 2011: 20: 430–438 © 2011 The Author(s), International Journal of Social Welfare © 2011 Blackwell Publishing Ltd and the International Journal of Social Welfare. Climate change is seldom discussed in mainstream social work. Its first presentations on the world stage occurred in Copenhagen during the Conference of the Parties (COP15). This article argues that the profession has an important role to play in: helping people understand the issues; promoting sustainable energy production and consumption; mobilising people to protect their futures through community social work; and proposing solutions to greenhouse gas emissions as indicated in two case studies, one based on a community initiative in the Global South, and the other in the Global North. The article also demonstrates that social workers can foster climate change endeavours that are equitable for all, for example the Equitable Carbon Sharing Scheme.