Fund Management and its Effect in the Greek Social Security System
Journal of Pension Economics and Finance, November 2007
Posted: 6 Feb 2006 Last revised: 24 Feb 2009
Date Written: November 2007
Economic and demographic slowdown has put under strain public pension systems around the globe. The actuarial balance of the PAYG system can only be restored by reshuffling its parameters and by attaining a higher return on its reserves. In this paper we discuss the characteristics of the Greek social security system, the reasons for the state of crisis it faces, and the early reforms that have been instituted so far. We furthermore, investigate the extent to which a system with more flexible pension fund management allowing for a variety of investment alternatives (including equity investment) could have relieved the pressure off the Greek public pension system while reducing the risks associated with such flexibility.
Keywords: PAYG system, pension fund reserves, social security system, fund management, value at risk, equity investment
JEL Classification: G23
Suggested Citation: Suggested Citation