The best indexation of public pensions: the point system

Andras Simonovits
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Andras Simonovits: Institute of Economics Centre for Economic and Regional Studies, Hungarian Academy of Sciences also Mathematical Institute of Budapest University of Technology

No 1815, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: We reconsider the problem of indexation of public pensions, emphasizing that similar contribution paths should imply similar benefit paths. This robustness criterion is only satisfied by full wage indexing, which in turn requires the politically unpopular reduction of the accrual rates. To minimize the redistribution from low-earning short-lived citizens to high-earning long-lived ones, progressive benefits should be introduced.

Keywords: public pensions; indexation; fairness (search for similar items in EconPapers)
JEL-codes: D10 H55 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2018-08
New Economics Papers: this item is included in nep-age and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:has:discpr:1815

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