An actuarial balance sheet of the Swiss old‐age pension scheme

Following the recent update of the international System of National Accounts (2008 SNA), internationally comparable estimates of accrued‐to‐date pension liabilities (ADL) of unfunded social security pension schemes will soon be available in the supplementary table to the National Accounts. Against this background, this article analyzes the medium‐term sustainability of the Swiss old‐age pension scheme (Alters‐ und Hinterlassenenversicherung – AHV). This is achieved by estimating a “Swedish” actuarial balance sheet, which compares pension liabilities with the explicit and implicit assets of the pension scheme. Our results show that the current financing of the AHV is unsustainable, with about 30 per cent of the liabilities not backed by corresponding assets. In order to close this financing gap either the contribution rate should rise from 8.4 per cent to 12 per cent or all pension liabilities should be cut by about 38 per cent.     

Poverty alleviation,coverage and fiscal sustainability: Investigating the effect of a new social pension in Hong Kong

This article synthesises the characteristics of social pensions across Asia and evaluates the effect of a new social pension in the Hong Kong SAR, the Old Age Living Allowance (OALA), on poverty alleviation, coverage rates and fiscal sustainability. We found that the effectiveness of the OALA in reducing old‐age poverty was limited, although it has led to an increase of retirement pension coverage by 6%. The OALA is projected to face substantial cost increases in the medium and longer term. Increasing the level of OALA benefits would be a direct means to enhance its poverty alleviation effect but may potentially be hampered by concerns about the fiscal sustainability of such changes. More obfuscated alternatives for Hong Kong policy makers to affect old‐age poverty alleviation include adjusting the indexing rules of benefit level payments and the eligibility criteria to reduce the stigma attached to the current policy choices.     

Presenting a new defamilization and familization framework for investigating the residualization of old‐age income security measures—The case study of Hong Kong

Familization and defamilization studies are increasingly seen as an important component of welfare research. They are concerned with the threats to the welfare of individuals caused by involuntary participation in the unwanted family relationship. Moreover, they address the idea that governments have the potential to reduce these threats through the provision of welfare measures. This article contributes to the familization and defamilizaion studies with the focus on the link between these studies and the studies of residualization strategies. It carries out three analytical tasks. The first is to present a new defamilization and familization framework. The second is to demonstrate the usefulness of this framework in analyzing the problem of employing the residualization strategies to reform the old‐age income security system. Our focus is particularly on the insufficient sensitivity of these strategies to women's (and men's) diverse preferences relating to ways of organizing their family life. The third is to demonstrate the empirical significance of this framework. To meet this objective, we apply the framework to the investigation of two old‐age income security measures in Hong Kong—the Mandatory Provident Fund and the Comprehensive Social Security Assistance scheme.     

Implicit debt in public‐sector pension plans: An international comparison

Most countries have separate pension plans for public‐sector employees. The future fiscal burden of these plans can be substantial as the government usually is the largest employer, pension promises in the public sector tend to be relatively generous, and future payments have to be paid out directly from government revenues (pay‐as‐you‐go) or by funded plans (pension funds) which tend to be underfunded. The valuation and disclosure of these promises in some countries lacks transparency, which may hide potentially huge fiscal liabilities to be passed on to future generations of workers. In order to arrive at a fair comparison between countries regarding the fiscal burden of their public‐sector pension plans, this article recommends that unfunded pension liabilities should be measured and reported according to a standard approach for reasons of fiscal transparency and better policy‐making. From a sample of Member countries of the Organisation for Economic Co‐operation and Development, the size of the net unfunded liabilities as of the end of 2008 is estimated in fair value terms. This fiscal burden can also be interpreted as the implicit pension debt in fair value terms.     

Old‐age protection for women in the Spanish pension system

The example of Spain confirms the common view that contributory pension systems reproduce inequalities between the sexes that result from the nature of labour market structures and the sharing of family responsibilities. In general, women who stay at home are not entitled to their own pensions and are dependent on benefits of lower value such as survivors' pensions (derived entitlements) or non‐contributory pensions. In turn, women who work outside the home accrue lower entitlements than men and, consequently, lower old‐age or disability pensions (personal entitlements). The purpose of this article is to examine the figures for pension distribution by sex in Spain, review some of the pension policies that have been implemented since 2000, and propose direct action for progress in the transition from derived entitlements to personal entitlements. These proposals are designed to promote sex equality, defined as the right to equal well‐being and financial security in old age.     

The political economy of changes in family and old‐age welfare policy spending: Analysis of OECD countries, 1998–2011

This study investigated whether in times of budget constraints and in countries with relatively large family policy spending, family policy has an advantage in the budget competition with old‐age expenditures, compared with countries with a lower level of family policy spending. We employed pooled time‐series cross‐sectional analysis of 24 OECD countries from 1998 to 2011. Our findings suggest that the initial level of family spending tends to moderate the crowding‐out effect of old‐age spending, indicating that the more mature a family spending policy is, the more it resists budget competition from old‐age policy. Furthermore, the size of government debt was found to have an insignificant effect on welfare budgeting. Our findings indicate that retrenchment in welfare spending for old age cannot be fully explained by budget constraints. Politics among interest groups associated with different welfare programmes can be an important determinant in explaining changes in spending on each welfare programme.     

Exploring a blind spot in comparative pension reform research: Long‐term trends in non‐contributory pensions in Europe

Over the past two decades, pension reforms have been high on the agenda of social policy makers in Europe. In many countries, these reforms have resulted in less generous public pensions. At the same time, minimum income protection for older adults has received attention from policy makers, but much less so from social policy researchers. Therefore, this study explored how benefit levels of non‐contributory minimum income schemes for older adults evolved from 1992 to 2012 in 13 ‘old’ EU member states. Building on two cross‐national longitudinal datasets with comparative data on minimum income protection in Europe, the study shows that over the past 20 years, the erosion of the principal safety net of last resort for older persons has been limited. Moreover, a substantial number of European countries have pursued a deliberate policy of considerably increasing minimum income benefits.     

China’s development of a multi‐tier pension system

China has made a number of major changes to its pension system in the period 2014–2020, and is in the process of establishing a multi‐tier old‐age pension system, consisting of programmes provided by the government, voluntary programmes provided by enterprises, and voluntary programmes established by individuals. Policy objectives are to reduce the fragmentation in its pension system; deal with population ageing; and diversify risks by involving the government, enterprises as well as individuals. This article shows that while China has a complex system for urban workers, the coverage provided by its multi‐tier system is uneven, with the second and third tiers being in the early stages of development.     

Girls with honour‐related problems in a comparative perspective

Schlytter A, Linell H. Girls with honour‐related problems in a comparative perspective
Int J Soc Welfare 2010: 19: 152–161 © 2009 The Author(s), Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. The aim of this study was to learn to perceive the indicators of honour‐related problems in a girl's everyday life. Our investigation included all girls aged 13–18 years who were about to be taken into care in 2006. The comparative analysis was based on 37 County Court cases in Stockholm County. The girls' exposure to harm in 13 of the 37 cases could be coupled to the demands and values of the honour culture. All the girls in the ‘honour’ group had been victims of mental abuse; they were more isolated than the girls in the ‘other reason’ group and none of the girls in the ‘honour’ group chose to meet their parents in court. We found that the honour culture life situation is new to the social services, which for these girls can mean that they do not have access to the same legal protection as other girls.     

The effects on intra‐generational inequality of introducing a funded pension scheme: A microsimulation analysis for Estonia

This article uses a single male cohort microsimulation model to analyse the intra‐generational and distributional effects of a shift in Estonia from a defined benefit pay‐as‐you‐go (PAYG) pension system to a multi‐pillared system with a PAYG scheme with contribution‐based insurance components and a funded pension scheme. We contribute to the literature on microsimulation by showing how introducing contribution‐based insurance components and compulsory defined contribution (DC) schemes can increase pension inequality. Our results show that in the case of a high level of inequality in labour earnings and high long‐term unemployment rates, such as in Estonia, the introduction of a very strong link between contributions and future benefits leads to considerably higher inequality in pension incomes as measured by the Gini coefficient. Simulation results for Estonia suggest that inequality in old‐age pension incomes more than doubles when the reforms mature. In contrast, the inequality in replacement rates decreases.     

The challenge of pension reform in Georgia: Non‐contributory pensions and elderly poverty

Georgia's national social security system offers almost universal non‐contributory basic pension coverage. The basic pension has, to date, proved effective in dealing with old‐age poverty. But Georgia's fiscal constraints and ageing population also highlight the importance of improving the pension system, in order to ensure its sustainability. This article presents policy reform choices, which suggest that, in Georgia, pension reform might include increasing the statutory retirement ages and reducing the generosity of benefits through means testing. The case of the Georgian non‐contributory basic pension might hold value for some low‐ and middle‐income countries that are considering the implementation of, or expanding coverage under, a non‐contributory pension programme.     

A “Swedish” actuarial balance for a notional defined contribution pension scheme with disability and minimum pension benefits

This article proposes a “Swedish” type actuarial balance sheet (ABS) for a notional defined contribution (NDC) scheme with disability and minimum pension benefits. The proposed ABS splits the pension system in two parts: the pure NDC part and the redistributive part, which includes the assets and liabilities originating from non‐contributory rights. The article contains a numerical example that sheds light on the real applicability of our proposal. The model has practical implications that could be of interest to policy‐makers, given that it integrates actuarial and social aspects of public pensions and discloses the real cost of redistribution through minimum pensions.     

The Associations between income,informal social networks,and health among older adults in South Korea: A multi‐group analysis based on the level of age‐friendly environments

The aim of the present study was to empirically investigate the role of age‐friendly environments (AFE) on the associations between income, informal social networks, and health among South Korean older adults. We used data from the “2017 Age Integration Survey” collected nationally and ultimately analyzed 615 older adults over 50 years of age. Structural equation modeling and multi‐group analysis were used to test the hypothesis. Specifically, two groups of perceived levels of AFE (top 25%, bottom 25%) were compared in order to examine the moderating effects. The results indicated that poor income and scarce informal social networks each had a significantly adverse impact on health. However, the effect of income on health was no longer significant for older adults living in environments that were more age‐friendly. In both groups, the presence of fewer informal social networks adversely impacted health, although the sizes of the effects decreased when the level of AFE perceived by older adults was improved. Finally, several implications of the study findings were discussed.     

A call for more elaborate and transparent pension data to inform policy‐making: A critical examination of World Bank data for Eastern Europe

This article offers a critical analysis of the methods by means of which data relating to the performance of second pillar pension schemes are collated, compared and reported. This is done with regard to the performance of mandatory private second pillar pension funds in Eastern Europe. By critically examining data published in a number of World Bank studies, and through the identification of data problems and irregularities, the article argues that a much more elaborate and transparent approach to the collation, comparative analysis and reporting of data is needed. Required is the establishment of a consensus regarding what should represent a robust basis for making credible policy recommendations, not least with regard to pension re‐reforms in the countries of Eastern Europe and elsewhere. In the absence of such a consensus, unresolved data problems and irregularities may potentially continue to influence the formulation of incomplete national policy conclusions regarding the performance of second pillar pension funds and, in turn, the ability of policy‐makers to evaluate appropriately the need for, and assess the feasibility of implementing in a sustainable manner, pension re‐reform.     

The interaction of pillars in multi‐pillar pension systems: A comparison of Canada,Denmark, Netherlands and Sweden

Canada, Denmark, the Netherlands and Sweden have advanced multi‐pillar pension systems. Using micro‐simulations, this article presents a close examination of the interaction of pillars in these countries. The relative importance and the role of the different pension pillars vary from country to country, and according to age, income, gender and socio‐economic dimensions as well as between generations. A further area of investigation is the mitigation capacity of the four pension systems. On the one hand, adverse labour careers lead to lower life‐time earnings and lower private pension accruals. On the other hand, these effects are mitigated through the design of pillars and their interaction. Mitigation is important to income security and stability in retirement and to post‐retirement income distribution. However, mitigation mechanisms come at the cost of incentives. Moreover, in many countries, the generosity of public benefits is set to decrease – increasing the importance of private pensions. This will shift risk and uncertainty from employers and pension institutions to individuals. Thus, risks and uncertainties related to private pensions will become more important, raising questions about the division of responsibilities between public and private pensions, and about the potential of mitigating such risk through pillar interaction. These concerns are further reinforced by labour market changes. Although a pension system free of distortions is inconceivable, this article seeks to contribute to addressing how mitigation should be designed, and how mitigation and risk sharing should be balanced against incentives, challenges which are as much political as technical.     

Child‐caregiver Attachment Representations in a Non‐Western Context: The Feasibility and Cultural Equivalence of Story Stems in Urban Ghana

Story stem measures are an increasingly popular method for assessing the attachment representations of young children, but little is known of their cross‐cultural applicability. This study aimed to characterise the attachment representations in 73 five‐ to eight‐year‐old children in urban Ghana, West Africa, using the Manchester Child Attachment Story Task (MCAST) to test its feasibility, psychometric characteristics and concurrent associations with caregiver‐ and teacher‐rated child behaviour, and to conduct a qualitative thematic analysis of methodological observations. Among the classifiable cases (92 percent), all attachment classifications were observed, yielding a higher rate of secure attachment than in European samples. Inter‐rater reliability, internal consistency, and internal structure were reasonable and largely similar to European studies, although one structural difference was the separation of ‘child assuagement of distress’ from other secure‐related items. MCAST narratives were associated with teacher‐ and caregiver‐rated hyperactivity, but internal consistency was low in most Strengths and Difficulties Questionnaire scales. Possible culturally‐sensitive explanations for our psychometric and qualitative findings are discussed. Overall, story stems are a promising tool for accessing attachment representations in non‐Western samples, although modifications are likely to improve cross‐cultural equivalence when applied to non‐Western cultures. Further investigation is needed to link MCAST outcomes to parenting and socio‐emotional development.     

Towards a Multi‐level Approach on Frontline Interactions in the Public Sector: Institutional Transformations and the Dynamics of Real‐time Interactions

This study develops a multi‐level approach on frontline interactions in the public sector. Previous research suggests that detailed analyses of frontline interactions are essential to our understanding of how welfare services take shape when policies and rules are applied and negotiated in individual cases. The dynamics and performances of real‐time interactions have, however, rarely been analyzed as such. This study shows how the methods developed in the field of Conversation Analysis can contribute to this research. Our multi‐level approach integrates analyses of the policy‐ and institutional transformations that shape conditions for frontline interactions; and analyses of how policies and rules are evoked, negotiated and reshaped in the turn‐by‐turn organization and performances of interaction. The approach is applied on an analysis of how rules regarding financial aid are applied in an authority highly affected by changes in welfare policy towards standardization and detailed regulations. The empirical case is the Swedish Board for Study Support. The empirical study includes analyses of documents, interviews and analyses of taped telephone conversations. The study shows how institutional arrangements of standardization, detailed regulations, monitoring and depersonalization, structure the frontline work and shape narrow frames for officials' discretion in interactions with clients. The study also shows how rules are invoked and negotiated in recurrent practices in the interaction: in the careful design of decisions; in the investigations of alternatives and exceptions from the rules in order to find solutions to the client's problems. The analyses of concrete interactional practices clearly indicate that also a rule‐governed work dominated by task discretion involves recurrent negotiations, flexibility and local policy‐making.