Policy Options and Issues in Reforming European Supplementary Pension Systems

24 Pages Posted: 30 Jul 2001

See all articles by Tryggvi Thor Herbertsson

Tryggvi Thor Herbertsson

University of Reykjavik

J. Michael Orszag

Willis Towers Watson - Reigate (Surrey Office); Institute for the Study of Labor (IZA)

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Abstract

Most industrialized countries are struggling with reforming their retirement income systems. The systems have mainly been based on public pay-as-you-go plans but as the systems have become mature they have increased the fiscal burden of nations and become an inadequate device for financial insurance for the old. Consequently, almost all the European countries will need either to prefund their retirement liabilities or reform their retirement systems to reduce or restrict benefits. There is already a significant volume of supplementary pensions in Europe; about 25 per cent of the labor force is covered and more than 2 trillion ECU of funds are under management. The proposed EU occupational pensions directive provides a framework for the growth of some of these supplementary pensions in EU Member States. This paper identifies and discusses ten important economic issues in the design and implementation of supplementary pensions systems.

Keywords: Pension reforms, supplementary pensions, Europe

JEL Classification: G23, E61, H31, H55

Suggested Citation

Herbertsson, Tryggvi Thor and Orszag, J. Michael, Policy Options and Issues in Reforming European Supplementary Pension Systems. Available at SSRN: https://ssrn.com/abstract=276248 or http://dx.doi.org/10.2139/ssrn.276248

Tryggvi Thor Herbertsson (Contact Author)

University of Reykjavik ( email )

Reykjavik
Iceland
+354 8613162 (Phone)

HOME PAGE: http://www.ru.is

J. Michael Orszag

Willis Towers Watson - Reigate (Surrey Office) ( email )

Watson House
London Road
Reigate, Surrey, RH2 9PQ
United Kingdom
+44 1737 241144 (Phone)
+44 1737 241496 (Fax)

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

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