Social Security Generosity, Budgetary Deficits and Reforms in North Cyprus

Hasan U. Altiok and Glenn Jenkins ()
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Hasan U. Altiok: Eastern Mediterranean University, Cyprus

No 2012-01, Development Discussion Papers from JDI Executive Programs

Abstract: This paper estimates the fiscal burden of the Pay-As-You-Go (PAYGO) Social Insurance Pension System that was closed in 2008 to new members, and analyzes the appropriateness of the 2008 reforms that introduced the new Social Security Pension System in the TRNC. To calculate the overall deficit, estimates are made from the difference between the present values of future contributions and the pension benefits. The magnitude of the unfunded cost makes any marginal policy reform ineffective in eliminating the excessive fiscal burden on the current and future taxpayers for the next three decades. Major structural reforms will be required.

Keywords: pay-as-you-go; social insurance; social security; pension liabilities; implicit pension debt; pension indexing (search for similar items in EconPapers)
JEL-codes: H55 H68 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2012-01
New Economics Papers: this item is included in nep-age and nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Social security generosity, budgetary deficits and reforms in North Cyprus (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:dpaper:214

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