Old age pension reform in China's state-owned enterprises

The old-age pension scheme in China's state-owned enterprises (SOEs) is experiencing a difficult transition period; in the past, SOEs were responsible for providing retirees with pension benefits. However, in the 1980s and 1990s, the financial position of SOEs deteriorated, making it difficult for them to honor their social welfare commitments. The background of the current pension crisis is examined, and recent attempts to improve the funding of pensions in China's state-owned sector are reviewed, focusing on the period since the State Council issued its "Decision on the Establishment of Unified Pension Insurance" in 1997. The article concludes with a review of priorities for further reform.     

Long-Term Care

This study examines the redistributive effects of public pensions on old-age income inequality, testing whether public pensions function as the “great equalizer.” Unlike the well-known alleviating effect of public pensions on old-age poverty, the effects of public pensions on old-age income inequality more generally have been less examined, particularly outside Western countries. Using repeated cross-sectional data of elderly Koreans between 1998 and 2010, we applied Gini coefficient decomposition to measure the impact of various income sources on old-age inequality, particularly focusing on public pensions. Our findings show that, contrary to expectations, public pension benefits have inequality-intensifying effects on old-age income in Korea, even countervailing the alleviating effects of public assistance. This rather surprising result is due to the specific institutional context of the Korean public pension system and suggests that the “structuring” of welfare policies could be as important as their expansion for the elderly, particularly for developing welfare states.     

Warum es kaum Pensionsfonds in Deutschland gibt. Kapitalmarktrisiken,Finanzindustrie und die Politik der Mindestverzinsung

Studies of the rise of private defined-contribution pension plans have traditionally focused on social policy concerns about the allocation of risks and costs for beneficiaries and employers. There is however another dimension of pension privatization, which situates it in the context of financial markets and—more broadly—the economic system. Here, regulations forcing private pension providers to guarantee a minimum rate of return on individuals’ pension assets make a crucial difference for financial markets because they incentivize fund managers to invest a greater chunk of plan portfolios in fixed-income securities and therefore away from equities. While different segments of the financial industry have divergent preferences over minimum return guarantees, politicians are caught in a dilemma: Should they prioritize predictable benefit levels or the development of equity markets? Using the case of the introduction of the German Riester Rente, we argue that, as politicians linked the introduction of private defined-contribution plans with cuts in statutory pensions, insurance firms in coalition with trade unions insisted on minimum guarantees, thereby restricting the expansion of equity markets in Germany.     

Demografische Alterung und Reformen der Alterssicherung in Europa – Probleme der ökonomischen,sozialen und politischen Nachhaltigkeit

Ageing is one of the long-term challenges for old age security in Europe, in particular for the intergenerational contract of pay-as-you go public pensions. The comparative macro-sociological analysis maps the demographic trends, political constraints, and social policy reform dynamics across Europe. Due to demographic ageing all European societies face long-term sustainability problems of their pension systems. Despite many reforms, European welfare states differ in the timing of retirement and the extent of pay-as-you-go public pensions. The comparison of ten European welfare states reveals the cross-national variations in reducing early retirement and in partially shifting to prefunded pensions. In addition to financial sustainability, the contribution also discusses other sustainability issues, particularly social inequality and political feasibility, which must be overcome in addition to the demographic challenge.     

Czechoslovakia’s Interrupted Revolution

Russia’s transition to a market economy has been accompanied by serious, and in some ways unanticipated, disruptions of the existing social welfare system. The social policy dilemma has become a contentious issue in the national political arena. This paper examines the debate on the relationship between social welfare and democratization in post-communist Russia, exploring the case of pensions for the elderly. Although the causes of the pension crisis are complex and rooted in institutional difficulties, the state’s fiscal weakness alone does not explain the difficulties and controversies associated with Russia’s pension crisis. Analysis of the assumptions and principles of pension policy during the Soviet era and perestroika reveals that Russia today is caught between contradictory and competing discourses over citizens’ entitlement to pensions: Is an old-age pension to be considered a reward distributed by a prosperous society, or a basic and inviolable human right? Although the Russian government has used an argument that in effect makes pensions conditional on government resources, citizen and opposition protest has to some extent compelled the Russian government to be increasingly sensitive to demands for guaranteed pensions.     

Contracting-out in the United Kingdom: a partnership between social security and private pension plans

Contracting-out was introduced in the United Kingdom in 1978 as part of the arrangements for the State Earnings-Related Pension Scheme (SERPS) in order to avoid duplication with the existing well-developed defined benefit occupational pension plan sector. Members and sponsors of contracted-out schemes were able to save on their social security contributions in recognition of the fact that they were accruing equivalent benefits through an occupational pension plan. Later on this concept was extended to those with individual money purchase pension plans. This article considers a brief history of contracting-out, the principles of contracting-out, some problems associated with contracting-out, the implications of the introduction of stakeholder pensions and State Second Pension, and the latest rebate review and rebate orders. It examines how U.K. pensions policy since 1978 has been based on a partnership between social security and private pension plans.     

Pension Reform in China

This article analyzes China’s pension arrangement and notes that China has recently established a universal non-contributory pension plan covering urban non-employed workers and all rural residents, combined with the pension plan covering urban employees already in place. Further, in the latest reform, China has discontinued the special pension plan for civil servants and integrated this privileged welfare class into the urban old-age pension insurance program. With these steps, China has achieved a degree of universalism and integration of its pension arrangement unprecedented in the non-Western world. Despite this radical pension transformation strategy, we argue that the current Chinese pension arrangement represents a case of “incomplete” universalism. First, its benefit level is low. Moreover, the benefit level varies from region to region. Finally, universalism in rural China has been undermined due to the existence of the “policy bundle.” Additionally, we argue that the 2015 pension reform has created a situation in which the stratification of Chinese pension arrangements has been “flattened,” even though it remains stratified to some extent.     

Contracting-Out in the United Kingdom

Abstract

Contracting-out was introduced in the United Kingdom in 1978 as part of the arrangements for the State Earnings-Related Pension Scheme (SERPS) in order to avoid duplication with the existing well-developed defined benefit occupational pension plan sector. Members and sponsors of contracted-out schemes were able to save on their social security contributions in recognition of the fact that they were accruing equivalent benefits through an occupational pension plan. Later on this concept was extended to those with individual money purchase pension plans. This article considers a brief history of contracting-out, the principles of contracting-out, some problems associated with contracting-out, the implications of the introduction of stakeholder pensions and State Second Pension, and the latest rebate review and rebate orders. It examines how U.K. pensions policy since 1978 has been based on a partnership between social security and private pension plans.     

Economic security for the elderly in India: an overview

The basic concept of social security is not new in India. Traditionally, a sort of moral economy existed to provide security to older destitute and other vulnerable groups in society. However, gradually, traditional support systems are disappearing, and state-based social security systems have come into existence. Under standardized economic security policies, government is covering retirement benefits for those in the organized sector; economic security benefits for those in the unorganized sector; and old-age pension for rural elderly. These are contributory as well as non-contributory programs. Besides life insurance approaches, savings-linked insurance and Annapurna (food security) are other important programs. However, in terms of coverage, program quality and effectiveness have been largely criticized by social security experts, suggesting immediate reforms to old-age programs.     

Economic Security for the Elderly in India

Summary

The basic concept of social security is not new in India. Traditionally, a sort of moral economy existed to provide security to older destitute and other vulnerable groups in society. However, gradually, traditional support systems are disappearing, and state-based social security systems have come into existence. Under standardized economic security policies, government is covering retirement benefits for those in the organized sector; economic security benefits for those in the unorganized sector; and old-age pension for rural elderly. These are contributory as well as non-contributory programs. Besides life insurance approaches, savings-linked insurance and Annapurna (food security) are other important programs. However, in terms of coverage, program quality and effectiveness have been largely criticized by social security experts, suggesting immediate reforms to old-age programs.     

Gender inequalities in pensions: different components similar levels of dispersion

While the average gender gap in pensions is quite well documented, gender differences in the distribution of pensions have rarely been explored. We show in this paper that pension dispersion is very similar for men and women within the French pension system of a given sector (public or private). Gender differences are less marked among retired civil servants than among former private sector employees. However, the determinants of these inequalities are not the same for men and women. Using a regression-based decomposition of the Gini coefficient, we find that pension dispersion is mostly due to dispersion of the reference wage for all retirees but gender differences exist. For women, in particular, pension dispersion is also due to the dispersion in contribution periods. We also decompose the Gini coefficient by source of pension to measure the impact of institutional rules (minimum pensions, survivor’s pension) on the extent of pension inequality. Unexpectedly, we find that the impact of minimum pensions is limited, although slightly larger for civil servants than for private-sector employees. Survivor’s pension schemes, on the other hand, contribute positively to pension dispersion among retired women.     

Arbeitslos oder erwerbsunfähig?

An international comparison of unemployment rates suggests a poor performance of the German labour market. Based on comparative analyses for Germany, the Netherlands, France, Denmark, the UK and the United States the paper tries to show that a more sophisticated picture can be drawn by taking additional forms of non-employment (e.g. disability, retirement or out of labour force) into account. For this purpose data from the “European Social Survey” (ESS) and the survey “Citizenship, Involvement and Democracy” collected in 2004 and 2005 is analysed. While “unemployment” plays a dominant role in Germany, people with comparable demographic characteristics and similar health status are increasingly classified as “permanently disabled” in the other countries. The results stress that an international comparison of labour market performance and especially a comparison of the effectiveness of labour market and social policy reforms should not only rely on employment and unemployment rates. Taking alternative forms of non-employment into account can increase our knowledge and understanding of functional differences of labour markets in Europe and the United States.     

在国家与市场之间寻找中国社会政策改革的逻辑——“社会发展与社会政策:国际经验与中国改革”国际学术研讨会评述

综观东亚新兴经济体和欧美发达国家在社会政策领域的路径变迁,可以得出"两个转型"的基本结论,即东亚新兴经济体从单一追求经济增长逐渐向追求经济与社会平衡发展转型;欧美发达国家从倚重国家福利向倚重社会投资与国家福利平衡发展转型。这两个处于不同社会发展阶段的转型,对中国当前的社会发展和社会政策改革都有着非常重要的启示意义。中国作为具有后发优势的全球最有活力的新兴经济体,当前既需要解决经济增长与社会发展之间的失衡问题,也需要未雨绸缪,避免陷入欧美国家福利陷阱而背上沉重的财政包袱。因此,在国家与市场之间找到一条最具效率性和合理性的社会发展路径,才是符合当前中国社会政策改革的逻辑。     

WOMEN'S ACCESS TO PENSIONS AND THE STRUCTURE OF ELIGIBILITY RULES:

Because many older women lack access to private pensions and rely solely on social security income, they are significantly more likely than men to have incomes below or near poverty level. Liberal feminists attribute women's failure to attain pensions to their discontinuous work histories, which preclude them from meeting requirements for length and continuity of service. Such a conclusion ignores the invisible gender-based distinctions arising from the organizational logic of the workplace. The key issue is not why women fail to satisfy pension rules but rather why the rules are structured to penalize women for their reproductive labor. This historical case study of the pension negotiation process in two unions, the United Auto Workers and the International Ladies Garment Workers Union, indicates that the price women pay in the market for their domestic labor is a social construction that arises from specific decisions in the workplace. The analysis suggests that women can improve their status relative to men if they are able to reveal the hidden dimensions of gender in societal institutions but that they cannot attain full equality until the distinction between social production and reproduction is eliminated.     

The Pension Reform Process in France

The French old age security system was constructed progressively following the end of the Second World War in response to the pressing problem of old age poverty. In 1945 less than 40% of old people (4.5 million in total) had a pension. This was despite the existence of some pension systems dating back to the end of the nineteenth century and the beginning of the twentieth century. Monetary depreciation also meant that the pensions of those who enjoyed such benefits were very low. Historical factors explain the current pension system's organization and institutional division favouring pay-as-you-go schemes. While the French pension system has been largely successful in eliminating old age poverty, it today faces new challenges and constraints that make reform necessary. The debate as how best to reform the pension system is a long and winding one. Change is slow and incremental. Ideological, social and cultural factors and their interrelations help explain the difficulties in effecting reforms.     

FEDERAL TRANSFER PAYMENTS IN AMERICA: VETERANS' PENSIONS AND THE RISE OF SOCIAL SECURITY

This paper examines the determinants of the adoption of the veterans' pension program and how it served as a prototype for the creation and administration of the federal welfare system in the United States. We provide statistical evidence in the form of an analysis of votes in the House of Representatives that state-based special interests which had supported the ongoing liberalization of the veterans' pension program provided significant support for the adoption of the Social Security Act of 1935. There is clear evidence the social security system was not adopted as a simple extension of state old-age pension programs.     

Outsiders and Intrapreneurs: The Institutional Embeddedness of Social Entrepreneurship in Germany

The social entrepreneurship discourse in Germany has become more prominent at a time when the deeply rooted corporatist traditions of social provision have come under pressure for marketization. This article examines the potential role of “social entrepreneurs” in the institutionally established German welfare state. The article analyzes the opportunities and constraints that new players face. Drawing on survey data and case studies in the areas of elderly care and advancement of children with immigrant background, the analysis retraces the structure and diffusion of social entrepreneurial projects. It concludes that the simple transfer of the social entrepreneurship model is unlikely. The analysis suggests that successful social ventures in Germany adapt the notion of social entrepreneurship to prevalent institutional realities. In the context of more encompassing social services, dense decentralized networks, and different cultures of philanthropism, new players have a complementary role that stimulates rather than dominates the process of social innovation.     

Surplus Food Recovery and Food Aid: The Pivotal Role of Non-profit Organisations. Insights From Italy and Germany

Food security and food waste are unanimously recognised as relevant issues affecting the whole society and should be therefore acknowledged as a priority on the public agenda. Nonetheless, in many countries the third sector stands in for public actors and operates to tackle both these issues. This paper explores the role of public and third sector in tackling food poverty and food waste, particularly analysing the role of the non-profit organisations involved in the food recovery and redistribution processes in two European regions: Lombardy (Italy) and Baden-Württemberg (Germany). By comparing the two different policy framework and the organisations’ actions, the study recognises the ability of the non-profit sector to create new relationships among different actors (private for-profit, private non-profit as well as public actors) while answering various unmet needs. The paper draws on a mix of secondary and primary data including observations and interviews in the two regions carried out in 2014 and focuses on two relevant case studies (the “Associazione Banco Alimentare” and the “Tafel”).     

Pension prospects of minority ethnic groups: inequalities by gender and ethnicity

Minority ethnic groups have low income in later life from private pensions, partly due to shorter employment records in Britain since migration. Yet disadvantage and discrimination in the labour market, as well as differences in cultural norms concerning women's employment, may lead to persistence of ethnic variation in private pension acquisition. Little is known about the pension arrangements made by men and women in minority ethnic groups during the working life. This paper examines the extent of ethnic disadvantage in private pension scheme arrangements and analyses variation according to gender and specific ethnic group, using three years of the British Family Resources Survey, which provides information on over 97,000 adults aged 20-59, including over 5,700 from ethnic minorities. Both men and women in minority ethnic groups were less likely to have private pension coverage than their white counterparts but the extent of the difference was most marked for Pakistanis and Bangladeshis. Ethnicity interacted with gender, so that Blacks showed the least gender inequality in private pension arrangements, reflecting the relatively similar full-time employment rates of Black men and women. A minority ethnic disadvantage in private pension coverage, for both men and women, remained after taking account of age, marital and parental status, years of education, employment variables, class and income. The research suggests that minority ethnic groups - especially women - will be disproportionately dependent on means-tested benefits in later life, due to the combined effects of low private pension coverage and the policy of shifting pension provision towards the private sector.     

Build Your Own Pension: Framing Pension Reform and Choice in Newspapers

Recent pension reforms in Norway mean that old-age pensions to a greater extent are a function of adaptations made and decisions made throughout the lifetime. How much you work, who you work for, when you retire, and how you invest will influence your standard of living as an old-age pensioner. This article investigates one important source of information about retirement and pension, namely service journalism in main national newspapers. How is the issue of pension framed in these articles? And what kind of advice is presented by which kind of actors? Findings indicate that service journalism is dominated by pension industry sources, and old-age pension is framed as a function of individual investment choices rather than as citizens’ rights.