The Importance of Reporting a Pension System’s Income Statement and Budgeted Variances in a Fair and Sustainable Scheme

Anne Marie Garvey (), Manuel Ventura-Marco () and Carlos Vidal-Melia
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Anne Marie Garvey: University of Alcalá
Manuel Ventura-Marco: University of Valencia

A chapter in Mathematical and Statistical Methods for Actuarial Sciences and Finance, 2021, pp 229-234 from Springer

Abstract: Abstract This paper deals with the pension system’s income statement and reporting budgeted variances in a fair and sustainable scheme. We highlight the importance of income statement presentation for monitoring the changes of solvency in a notional defined contribution (NDC) pension scheme with disability and minimum pension benefits. Using the annual report of the Swedish pension system as a benchmark (TSPS, 2019), we extend it by adding the changes for disability pensions, the value of change in the discount rate and the explicit recognition of non-contributory rights (NCRs). Our proposal integrates both contributory and social aspects of public pensions and discloses the real cost of the disability contingency and the redistribution through minimum pensions. The inclusion of information relating to deviations from budget provide useful information to users for future decision making.

Keywords: Disability insurance; Minimum pensions; Notional defined contribution; Pension accounting; Sweden; True and fair view (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-78965-7_34

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DOI: 10.1007/978-3-030-78965-7_34

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