Reform options for pay-as-you-go public pension systems

Sheetal Chand and Albert Jaeger

No 23067, Social Protection Discussion Papers and Notes from The World Bank

Abstract: Public pension schemes in many countries are predominantly of a pay-as-you-go (PAYG) type, particularly in advanced and transition economies. This paper reviews the types of stresses that PAYG systems can experience and discusses a range of policy options to preserve the financial stability of public PAYG systems. Section 1 introduces the basic policy levers of a stylized PAYG system. Section 2 discusses the key short- and long-run financial challenges faced by PAYG systems. Section 3 covers parametric adjustments in the basic PAYG policy levers as well as administrative reforms. Section 4 describes broader reform strategies for maintaining financial equilibrium in a PAYG system including the option of partial funding.

Keywords: Pensions&Retirement Systems; Environmental Economics&Policies; Economic Stabilization; Banks&Banking Reform; National Governance (search for similar items in EconPapers)
Date: 1999-12-31
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:wbk:hdnspu:23067

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