Social Security Reforms in Northern Cyprus: Are they Fiscally Balanced and Socially Equitable?

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

No 2012-02, Development Discussion Papers from JDI Executive Programs

Abstract: This paper contains a quantitative assessment of the social security pension reforms in Northern Cyprus (TRNC) that were introduced in 2008 and later refined in 2012. A set of estimations are carried out to determine if the reforms were adequate enough to make the system self-financing. The key question is whether now the contributions over a participants working life would be sufficient to finance the pension promises through retirement. It is found that although significant improvements were made, the new system is neither fiscally neutral nor socially equitable. It delivers a higher budgetary subsidy to high income participants relative to the subsidy received by those with lower incomes. Recommendations are made for the policy changes to correct these defects.

Keywords: pay-as-you-go; social security; pension liabilities; replacement rate; Northern Cyprus (search for similar items in EconPapers)
JEL-codes: H55 H68 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2012-01
New Economics Papers: this item is included in nep-age and nep-pub
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Persistent link: https://EconPapers.repec.org/RePEc:qed:dpaper:215

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