John F. Cogan and Olivia S. Mitchell
- Published in print:
- 2007
- Published Online:
- January 2008
- ISBN:
- 9780199226801
- eISBN:
- 9780191710285
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199226801.003.0009
- Subject:
- Business and Management, Pensions and Pension Management
In 2001, President George W. Bush appointed the President's Commission to Strengthen Social Security, composed of sixteen members from both major political parties. Members were tasked with providing ...
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In 2001, President George W. Bush appointed the President's Commission to Strengthen Social Security, composed of sixteen members from both major political parties. Members were tasked with providing the president with recommendations on how to modernize the Social Security system, restore its fiscal soundness, and develop a workable system of personal retirement accounts as part of a newly structured program. This chapter presents perspectives on Social Security reform, drawn from service on the President's Commission. It begins with a discussion of the use of personal retirement accounts as a method of prefunding the Social Security system. The Commission to Strengthen Social Security developed three reform scenarios that incorporate personal retirement accounts as a central element in a modernized system of old-age security. The chapter focuses on one reform plan in particular — one that promises an enhanced and more reliable safety net while also providing workers the opportunity to invest in personal accounts with diversified investment choice and potentially lower risk. It is argued that reforms of this sort can help put Social Security on a self-financing basis for the first time in over a quarter of a century.Less
In 2001, President George W. Bush appointed the President's Commission to Strengthen Social Security, composed of sixteen members from both major political parties. Members were tasked with providing the president with recommendations on how to modernize the Social Security system, restore its fiscal soundness, and develop a workable system of personal retirement accounts as part of a newly structured program. This chapter presents perspectives on Social Security reform, drawn from service on the President's Commission. It begins with a discussion of the use of personal retirement accounts as a method of prefunding the Social Security system. The Commission to Strengthen Social Security developed three reform scenarios that incorporate personal retirement accounts as a central element in a modernized system of old-age security. The chapter focuses on one reform plan in particular — one that promises an enhanced and more reliable safety net while also providing workers the opportunity to invest in personal accounts with diversified investment choice and potentially lower risk. It is argued that reforms of this sort can help put Social Security on a self-financing basis for the first time in over a quarter of a century.
Fiona Ross
- Published in print:
- 2007
- Published Online:
- September 2007
- ISBN:
- 9780199217977
- eISBN:
- 9780191711541
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199217977.003.0013
- Subject:
- Political Science, American Politics
This chapter seeks to illustrate the importance of both structural constraints deriving from the established trajectory of the policy regime itself and the relevance of the partisan character of key ...
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This chapter seeks to illustrate the importance of both structural constraints deriving from the established trajectory of the policy regime itself and the relevance of the partisan character of key actors in understanding the scope for significant leadership. Institutionally embedded paths can be moved endogenously but change is usually subsequent to a pattern of path-erosion and conditional upon high levels of trust in the agents of change. Even when the returns generated by the extant path are impaired, the capacity for transformative leadership is often limited to actors who own the issue at hand. Combining these points, it is argued that presidential scholars can improve their predictive capacity by factoring the properties of the path and issue-ownership by key actors into their analyses: both factors would have generated the very clear prediction that partial privatization of Social Security by the Bush Administration would fail. Conversely, an analysis based on the standard short-term political and institutional variables of unified government, presidential commitment, speed, and focus very early in a new administration mistakenly inspired some confidence that George W. Bush enjoyed a window of opportunity for reform.Less
This chapter seeks to illustrate the importance of both structural constraints deriving from the established trajectory of the policy regime itself and the relevance of the partisan character of key actors in understanding the scope for significant leadership. Institutionally embedded paths can be moved endogenously but change is usually subsequent to a pattern of path-erosion and conditional upon high levels of trust in the agents of change. Even when the returns generated by the extant path are impaired, the capacity for transformative leadership is often limited to actors who own the issue at hand. Combining these points, it is argued that presidential scholars can improve their predictive capacity by factoring the properties of the path and issue-ownership by key actors into their analyses: both factors would have generated the very clear prediction that partial privatization of Social Security by the Bush Administration would fail. Conversely, an analysis based on the standard short-term political and institutional variables of unified government, presidential commitment, speed, and focus very early in a new administration mistakenly inspired some confidence that George W. Bush enjoyed a window of opportunity for reform.
Robert W. Fogel
- Published in print:
- 2007
- Published Online:
- January 2008
- ISBN:
- 9780199226801
- eISBN:
- 9780191710285
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199226801.003.0001
- Subject:
- Business and Management, Pensions and Pension Management
This foreword provides an overview of demographic development during the past three centuries, as life expectancy and per-capita growth of GDP have increased dramatically. Due to the intense ...
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This foreword provides an overview of demographic development during the past three centuries, as life expectancy and per-capita growth of GDP have increased dramatically. Due to the intense interplay between physiological improvement and technological advances, humans have increased their body size by more than 50% in the past two centuries, and the betterment of general sanitation, reduction of air pollution in the cities, and higher food intake have improved life expectancy. It is argued that demographers have consistently underestimated the impact of such improvements and, consequently, have underestimated gains in life expectancy. With more workers living longer and healthier lives, men in Western countries have four times more leisure than they did a century ago, and this trend will continue. This achievement has devastating financial implications for already overburdened social security systems and calls for a careful re-examination of social security to ensure future sustainability.Less
This foreword provides an overview of demographic development during the past three centuries, as life expectancy and per-capita growth of GDP have increased dramatically. Due to the intense interplay between physiological improvement and technological advances, humans have increased their body size by more than 50% in the past two centuries, and the betterment of general sanitation, reduction of air pollution in the cities, and higher food intake have improved life expectancy. It is argued that demographers have consistently underestimated the impact of such improvements and, consequently, have underestimated gains in life expectancy. With more workers living longer and healthier lives, men in Western countries have four times more leisure than they did a century ago, and this trend will continue. This achievement has devastating financial implications for already overburdened social security systems and calls for a careful re-examination of social security to ensure future sustainability.
Salvador Valdés‐Prieto
- Published in print:
- 2006
- Published Online:
- September 2006
- ISBN:
- 9780199204656
- eISBN:
- 9780191603822
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199204659.003.0012
- Subject:
- Economics and Finance, Financial Economics
Mandatory old-age benefit programs tend to require periodic adjustments as a result of demographic and economic shocks. However, such discretionary adjustments create political risk for workers and ...
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Mandatory old-age benefit programs tend to require periodic adjustments as a result of demographic and economic shocks. However, such discretionary adjustments create political risk for workers and beneficiaries, and raises taxpayer risk. An alternative way to handle such shocks is to use rule-based adjustment, which can be adopted in an unfunded system without incurring transition costs and without increasing public debt. This chapter explores an approach to this problem that would endow the Social Security Trust Fund with property rights over the revenue of a (much reduced) residual payroll tax paid by future workers. This revenue would be securitized and the resulting securities priced in financial markets. The new securities created in the process would allow beneficiaries to obtain safe real pensions protected from investment risk.Less
Mandatory old-age benefit programs tend to require periodic adjustments as a result of demographic and economic shocks. However, such discretionary adjustments create political risk for workers and beneficiaries, and raises taxpayer risk. An alternative way to handle such shocks is to use rule-based adjustment, which can be adopted in an unfunded system without incurring transition costs and without increasing public debt. This chapter explores an approach to this problem that would endow the Social Security Trust Fund with property rights over the revenue of a (much reduced) residual payroll tax paid by future workers. This revenue would be securitized and the resulting securities priced in financial markets. The new securities created in the process would allow beneficiaries to obtain safe real pensions protected from investment risk.
Milko Matijascic and Stephen J. Kay
- Published in print:
- 2007
- Published Online:
- January 2008
- ISBN:
- 9780199226801
- eISBN:
- 9780191710285
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199226801.003.0012
- Subject:
- Business and Management, Pensions and Pension Management
This chapter describes Brazil's social security system and the highly contentious reform process. While much of the rest of the South American region moved toward individual accounts, Brazil engaged ...
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This chapter describes Brazil's social security system and the highly contentious reform process. While much of the rest of the South American region moved toward individual accounts, Brazil engaged in parametric reforms. Recently, the country introduced the fator previdenci ário, a system akin to a notional DC system, whereby contributions and benefits are strictly linked but contributions do not go into individual-funded savings accounts. Although a few political leaders have favoured private accounts, individual accounts never received much political support, and the transition costs are considered potentially prohibitive, reaching as high as 201% of GDP. Structural reform is complicated by the fact that the social security system is codified in the 1988 constitution, which means that any structural reform needs to go through the laborious and politically costly constitutional amendment process. It is argued that administrative and legislative reforms that would make the system more efficient and equitable are possible even when support for constitutional reform is lacking.Less
This chapter describes Brazil's social security system and the highly contentious reform process. While much of the rest of the South American region moved toward individual accounts, Brazil engaged in parametric reforms. Recently, the country introduced the fator previdenci ário, a system akin to a notional DC system, whereby contributions and benefits are strictly linked but contributions do not go into individual-funded savings accounts. Although a few political leaders have favoured private accounts, individual accounts never received much political support, and the transition costs are considered potentially prohibitive, reaching as high as 201% of GDP. Structural reform is complicated by the fact that the social security system is codified in the 1988 constitution, which means that any structural reform needs to go through the laborious and politically costly constitutional amendment process. It is argued that administrative and legislative reforms that would make the system more efficient and equitable are possible even when support for constitutional reform is lacking.
Robert L. Clark, Lee A. Craig, and Neveen Ahmed
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199573349
- eISBN:
- 9780191721946
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199573349.003.0014
- Subject:
- Business and Management, Public Management, Pensions and Pension Management
Municipal governments in the United States began offering retirement plans for their workers in the mid-nineteenth century, and state governments followed in the early twentieth century. As these ...
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Municipal governments in the United States began offering retirement plans for their workers in the mid-nineteenth century, and state governments followed in the early twentieth century. As these plans matured, they confronted economic, social, and political challenges, including the creation of the Social Security system, which subsequently shaped their structure, governance, and generosity. After reviewing this history, the authors employ data from all fifty states to estimate a pension benefit equation for hypothetical workers and explain differences in the generosity of plans across states and types of workers covered. The authors show that population growth, plan funding, union representation, and participation in Social Security influenced the generosity of the plans.Less
Municipal governments in the United States began offering retirement plans for their workers in the mid-nineteenth century, and state governments followed in the early twentieth century. As these plans matured, they confronted economic, social, and political challenges, including the creation of the Social Security system, which subsequently shaped their structure, governance, and generosity. After reviewing this history, the authors employ data from all fifty states to estimate a pension benefit equation for hypothetical workers and explain differences in the generosity of plans across states and types of workers covered. The authors show that population growth, plan funding, union representation, and participation in Social Security influenced the generosity of the plans.
James W. Cortada
- Published in print:
- 2007
- Published Online:
- January 2008
- ISBN:
- 9780195165869
- eISBN:
- 9780199868025
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195165869.003.0005
- Subject:
- Business and Management, Business History
This chapter discusses the impact of IT on the work of the Social Security Administration (SSA), the Bureau of the Census, and the US Postal Service (USPS). All three organizations extensively use ...
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This chapter discusses the impact of IT on the work of the Social Security Administration (SSA), the Bureau of the Census, and the US Postal Service (USPS). All three organizations extensively use information technology, in fact, to such an extent that it would be difficult to imagine how they could function in the future without its use. How each came to such a point reflects various experiences unique to each agency. The rate of adoption and extent of deployment reflects internal operational and managerial issues and as with other federal agencies and departments, digital tools had to be configured in ways specific to their needs.Less
This chapter discusses the impact of IT on the work of the Social Security Administration (SSA), the Bureau of the Census, and the US Postal Service (USPS). All three organizations extensively use information technology, in fact, to such an extent that it would be difficult to imagine how they could function in the future without its use. How each came to such a point reflects various experiences unique to each agency. The rate of adoption and extent of deployment reflects internal operational and managerial issues and as with other federal agencies and departments, digital tools had to be configured in ways specific to their needs.
Peter A. Swenson
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780195142976
- eISBN:
- 9780199872190
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195142977.003.0009
- Subject:
- Political Science, American Politics
Constructs an explanation of welfare state development in the U.S. from analysis of segmentalism and cartelism, analyzed in earlier chapters, which characterized key components of its labor market ...
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Constructs an explanation of welfare state development in the U.S. from analysis of segmentalism and cartelism, analyzed in earlier chapters, which characterized key components of its labor market system. Segmentalists (implicitly) and cartelists (explicitly) contracted with workers to hold wages and benefits higher than what market mechanisms alone would have set them; thus, these employers were vulnerable to the deflationary macroeconomic shock and unemployment of the Great Depression, which allowed competitors to threaten their profits by more freely lowering wages and therefore charging lower prices. New Dealers, having learned from the Progressive era as well as more recent reform about the potential for capitalist support ignored vocal opposition from business organizations and proceeded with regulatory social security, unemployment insurance, minimum wage, and labor law reform that would level the competitive playing field upward, stabilizing ruinous competition for cartelists and segmentalists, and thereby securing a cross‐class alliance for the New Deal.Less
Constructs an explanation of welfare state development in the U.S. from analysis of segmentalism and cartelism, analyzed in earlier chapters, which characterized key components of its labor market system. Segmentalists (implicitly) and cartelists (explicitly) contracted with workers to hold wages and benefits higher than what market mechanisms alone would have set them; thus, these employers were vulnerable to the deflationary macroeconomic shock and unemployment of the Great Depression, which allowed competitors to threaten their profits by more freely lowering wages and therefore charging lower prices. New Dealers, having learned from the Progressive era as well as more recent reform about the potential for capitalist support ignored vocal opposition from business organizations and proceeded with regulatory social security, unemployment insurance, minimum wage, and labor law reform that would level the competitive playing field upward, stabilizing ruinous competition for cartelists and segmentalists, and thereby securing a cross‐class alliance for the New Deal.
Daniel Béland and André Lecours
- Published in print:
- 2008
- Published Online:
- September 2008
- ISBN:
- 9780199546848
- eISBN:
- 9780191720468
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199546848.003.0005
- Subject:
- Political Science, Comparative Politics, Political Theory
Chapter 4 begins with a brief discussion on the origins of Flemish nationalism. Then, it analyses the post-war expansion of social policy in Belgium and the meshing of social policy reform and ...
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Chapter 4 begins with a brief discussion on the origins of Flemish nationalism. Then, it analyses the post-war expansion of social policy in Belgium and the meshing of social policy reform and nationalist mobilization in Flanders after 1980. This leads to a discussion of the Flemish push for the federalization of the Belgian social insurance system. Such a discussion addresses the following puzzle: Why has the federal social insurance system not been at least partially decentralized in light of the fact that the Flemish political class overwhelmingly supports it? The answer is that federal social partners and, especially, Francophone parties are in a strong institutional position to successfully oppose decentralization. The chapter concludes with a discussion of the Flemish dependency insurance scheme, which could pave the way for the development of further distinct social policies in Flanders.Less
Chapter 4 begins with a brief discussion on the origins of Flemish nationalism. Then, it analyses the post-war expansion of social policy in Belgium and the meshing of social policy reform and nationalist mobilization in Flanders after 1980. This leads to a discussion of the Flemish push for the federalization of the Belgian social insurance system. Such a discussion addresses the following puzzle: Why has the federal social insurance system not been at least partially decentralized in light of the fact that the Flemish political class overwhelmingly supports it? The answer is that federal social partners and, especially, Francophone parties are in a strong institutional position to successfully oppose decentralization. The chapter concludes with a discussion of the Flemish dependency insurance scheme, which could pave the way for the development of further distinct social policies in Flanders.
Peter A. Swenson
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780195142976
- eISBN:
- 9780199872190
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195142977.003.0010
- Subject:
- Political Science, American Politics
Submits additional evidence for the cross‐class alliance theory of welfare state development in order to challenge competing theories, especially those that deny the positive role that capitalist ...
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Submits additional evidence for the cross‐class alliance theory of welfare state development in order to challenge competing theories, especially those that deny the positive role that capitalist power plays in determining the timing and shaping of reform. It shows, contrary to influential institutionalist theory, that the New Dealers did not act in bold defiance of monolithic opposition from capitalists, for in fact business organizations were internally divided; that corporate progressives were not disappointed with the New Deal; and that the New Dealers were not interested in building or defending state institutions that would endow bureaucrats and policy experts with the autonomous power to execute progressive policy without regard to capitalist interests. The discussion also challenges other theories that focus on the following: the loss of capitalist power due to the Depression and therefore politicians’ supposed new freedom to ignore business confidence; horse trading between internationalist business interests with little to lose from progressive legislation, and labor groups with little to lose from free trade; and direct pressure from capitalists for regulatory social reform.Less
Submits additional evidence for the cross‐class alliance theory of welfare state development in order to challenge competing theories, especially those that deny the positive role that capitalist power plays in determining the timing and shaping of reform. It shows, contrary to influential institutionalist theory, that the New Dealers did not act in bold defiance of monolithic opposition from capitalists, for in fact business organizations were internally divided; that corporate progressives were not disappointed with the New Deal; and that the New Dealers were not interested in building or defending state institutions that would endow bureaucrats and policy experts with the autonomous power to execute progressive policy without regard to capitalist interests. The discussion also challenges other theories that focus on the following: the loss of capitalist power due to the Depression and therefore politicians’ supposed new freedom to ignore business confidence; horse trading between internationalist business interests with little to lose from progressive legislation, and labor groups with little to lose from free trade; and direct pressure from capitalists for regulatory social reform.
Martin Rhodes
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780198297567
- eISBN:
- 9780191600104
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198297564.003.0007
- Subject:
- Political Science, Comparative Politics
This is the third of three chapters on the role of economic interests, and of systems for representing those interests, in the politics of welfare state reform; they explore the linkages between ...
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This is the third of three chapters on the role of economic interests, and of systems for representing those interests, in the politics of welfare state reform; they explore the linkages between national welfare states and national economies, and examine the processes through which economic actors press their interests on policy makers. Here Rhodes explores the implications for welfare states of nationally negotiated social pacts in bridging and making innovative linkages between social security systems and employment rules and wage bargaining. The essential argument of Sect. 1 is that the emergence of social pacts is linked to common domestic and external pressures for welfare state reform in the European Union, and that contrary to the expectations of many commentators, these pressures are neither ‘disorganizing’ European capitalism nor neutralizing the power of the state; furthermore, rather than fragmenting political‐economic structures, pressures for reform have in many instances modified or even bolstered efforts at coordination via bargaining. Section 2 introduces the notion of ‘competitive corporatism’, and shows that underpinning these social pacts are varying degrees of associational cohesion, and two types of coalition — seeking distributional deals and productivity gains — which have complex linkages and overlaps. In ideal typical terms, it can be suggested that competitive corporatism is successfully achieved if underpinned by a close but flexible interlocking of these two types of coalition, although in practice it is not always possible, as has been demonstrated in various continental European countries.Less
This is the third of three chapters on the role of economic interests, and of systems for representing those interests, in the politics of welfare state reform; they explore the linkages between national welfare states and national economies, and examine the processes through which economic actors press their interests on policy makers. Here Rhodes explores the implications for welfare states of nationally negotiated social pacts in bridging and making innovative linkages between social security systems and employment rules and wage bargaining. The essential argument of Sect. 1 is that the emergence of social pacts is linked to common domestic and external pressures for welfare state reform in the European Union, and that contrary to the expectations of many commentators, these pressures are neither ‘disorganizing’ European capitalism nor neutralizing the power of the state; furthermore, rather than fragmenting political‐economic structures, pressures for reform have in many instances modified or even bolstered efforts at coordination via bargaining. Section 2 introduces the notion of ‘competitive corporatism’, and shows that underpinning these social pacts are varying degrees of associational cohesion, and two types of coalition — seeking distributional deals and productivity gains — which have complex linkages and overlaps. In ideal typical terms, it can be suggested that competitive corporatism is successfully achieved if underpinned by a close but flexible interlocking of these two types of coalition, although in practice it is not always possible, as has been demonstrated in various continental European countries.
Estelle James, Alejandra Cox Edwards, and Rebeca Wong
- Published in print:
- 2007
- Published Online:
- January 2008
- ISBN:
- 9780199226801
- eISBN:
- 9780191710285
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199226801.003.0005
- Subject:
- Business and Management, Pensions and Pension Management
Over the past two decades many countries have adopted multipillar pension systems that include both a public DB and a private DC pillar. Critics of these pension reforms argue that the tight link ...
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Over the past two decades many countries have adopted multipillar pension systems that include both a public DB and a private DC pillar. Critics of these pension reforms argue that the tight link between payroll contributions and benefits in the DC pillar produce lower pensions for women. In contrast, supporters of these reforms argue that multipillar systems remove distortions that favour men and permit a more targeted public pillar that help women. This chapter examines the differential impact on genders of the new and old systems in Chile, Argentina, and Mexico. In all three cases, the new social security system includes two mandatory components: privately managed funded individual accounts (DC) and a publicly managed and financed safety net. Women accumulate retirement funds and private annuities from the DC pillar of the multipillar systems that are only 30-40% of those of men. This effect can be mitigated by introducing two critical elements into the new systems: (a) targeting the new public pillars toward low earners, because the majority of low earners are women, and (b) restricting payout provisions such as joint annuity requirements. With these modifications, total lifetime retirement benefits for women would reach 60-80% of those for men. For ‘full-career’ married women, they would equal or exceed benefits of men.Less
Over the past two decades many countries have adopted multipillar pension systems that include both a public DB and a private DC pillar. Critics of these pension reforms argue that the tight link between payroll contributions and benefits in the DC pillar produce lower pensions for women. In contrast, supporters of these reforms argue that multipillar systems remove distortions that favour men and permit a more targeted public pillar that help women. This chapter examines the differential impact on genders of the new and old systems in Chile, Argentina, and Mexico. In all three cases, the new social security system includes two mandatory components: privately managed funded individual accounts (DC) and a publicly managed and financed safety net. Women accumulate retirement funds and private annuities from the DC pillar of the multipillar systems that are only 30-40% of those of men. This effect can be mitigated by introducing two critical elements into the new systems: (a) targeting the new public pillars toward low earners, because the majority of low earners are women, and (b) restricting payout provisions such as joint annuity requirements. With these modifications, total lifetime retirement benefits for women would reach 60-80% of those for men. For ‘full-career’ married women, they would equal or exceed benefits of men.
E. Philip Davis
- Published in print:
- 1998
- Published Online:
- March 2012
- ISBN:
- 9780198293040
- eISBN:
- 9780191684944
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198293040.003.0003
- Subject:
- Economics and Finance, Financial Economics, Public and Welfare
Conventionally, pension funds are perceived as a part of a system for providing income to those of old age in which the other components include earnings-related social security, either provided to ...
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Conventionally, pension funds are perceived as a part of a system for providing income to those of old age in which the other components include earnings-related social security, either provided to those without a pension or compulsory, compulsory flat rate social-security pensions, work after retirement, support from the family, and individual saving that also encompasses the purchase of residential property as well as life-insurance-based savings plans. Social security thus proves to be one of the fundamental factors in the framework of retirement-income provision and in private pensions' further development. As the chapter addresses the need to provide an account regarding the key issues in social security, it looks into some of the basic concepts, such as how the public provision of pensions is justified, social security's economic implications, public schemes, and the various manifestations of social-security pensions.Less
Conventionally, pension funds are perceived as a part of a system for providing income to those of old age in which the other components include earnings-related social security, either provided to those without a pension or compulsory, compulsory flat rate social-security pensions, work after retirement, support from the family, and individual saving that also encompasses the purchase of residential property as well as life-insurance-based savings plans. Social security thus proves to be one of the fundamental factors in the framework of retirement-income provision and in private pensions' further development. As the chapter addresses the need to provide an account regarding the key issues in social security, it looks into some of the basic concepts, such as how the public provision of pensions is justified, social security's economic implications, public schemes, and the various manifestations of social-security pensions.
Cybelle Fox
- Published in print:
- 2012
- Published Online:
- October 2017
- ISBN:
- 9780691152233
- eISBN:
- 9781400842582
- Item type:
- chapter
- Publisher:
- Princeton University Press
- DOI:
- 10.23943/princeton/9780691152233.003.0010
- Subject:
- Political Science, Public Policy
This chapter focuses on the Social Security Act and the disparate treatment of blacks, Mexicans, and European immigrants in the administration of Social Security, Unemployment Insurance, Aid to ...
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This chapter focuses on the Social Security Act and the disparate treatment of blacks, Mexicans, and European immigrants in the administration of Social Security, Unemployment Insurance, Aid to Dependent Children, and Old Age Assistance. Though framed as legislation that would help the “average citizen,” scholars have shown that the Social Security Act in fact excluded the vast majority of blacks from the most generous social insurance programs, relegating them to meager, decentralized, and demeaning means-tested programs. European immigrants, by contrast, benefited from many of the provisions of the Social Security Act, and in at least some respects, they benefited more than even native-born whites. The net result of these policies was that blacks were disproportionately shunted into categorical assistance programs with low benefit levels, European immigrants were disproportionately covered under social insurance regardless of citizenship, and Mexicans were often shut out altogether.Less
This chapter focuses on the Social Security Act and the disparate treatment of blacks, Mexicans, and European immigrants in the administration of Social Security, Unemployment Insurance, Aid to Dependent Children, and Old Age Assistance. Though framed as legislation that would help the “average citizen,” scholars have shown that the Social Security Act in fact excluded the vast majority of blacks from the most generous social insurance programs, relegating them to meager, decentralized, and demeaning means-tested programs. European immigrants, by contrast, benefited from many of the provisions of the Social Security Act, and in at least some respects, they benefited more than even native-born whites. The net result of these policies was that blacks were disproportionately shunted into categorical assistance programs with low benefit levels, European immigrants were disproportionately covered under social insurance regardless of citizenship, and Mexicans were often shut out altogether.
Maurizio Ferrara
- Published in print:
- 2005
- Published Online:
- February 2006
- ISBN:
- 9780199284665
- eISBN:
- 9780191603273
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199284660.003.0004
- Subject:
- Political Science, Political Economy
This chapter focuses on the Trente Glorieuses (1945-1975), and identifies the first seeds of spatial reconfiguration in the field of social protection: the appearance of new membership spaces (e.g. ...
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This chapter focuses on the Trente Glorieuses (1945-1975), and identifies the first seeds of spatial reconfiguration in the field of social protection: the appearance of new membership spaces (e.g. supplementary pension schemes), the creation of the European Communities, and the establishment of a coordination regime regulating the social entitlements of migrant workers within the EC. The chapter discusses the original division of labour between the market-making functions of the EC, and the redistributive functions left to the member states. It also reconstructs the emergence of a distinct EC “constitutional order” and its creeping implications for national social rights through legal integration.Less
This chapter focuses on the Trente Glorieuses (1945-1975), and identifies the first seeds of spatial reconfiguration in the field of social protection: the appearance of new membership spaces (e.g. supplementary pension schemes), the creation of the European Communities, and the establishment of a coordination regime regulating the social entitlements of migrant workers within the EC. The chapter discusses the original division of labour between the market-making functions of the EC, and the redistributive functions left to the member states. It also reconstructs the emergence of a distinct EC “constitutional order” and its creeping implications for national social rights through legal integration.
Peter A. Diamond
- Published in print:
- 2002
- Published Online:
- October 2011
- ISBN:
- 9780199247899
- eISBN:
- 9780191697692
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199247899.003.0001
- Subject:
- Economics and Finance, Financial Economics, Public and Welfare
This chapter discusses the importance of social security to the economy and how it affects different members of society. Social security is important to all types of workers both young and old. For ...
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This chapter discusses the importance of social security to the economy and how it affects different members of society. Social security is important to all types of workers both young and old. For the older members of the labour force social security is important for helping them make retirement decisions. Social Security also affects younger labourers; since it determines the level of savings they need to provide for their retirement. Social Security also helps allocate risks in the economy. Because of its importance, any reform or any policy recommendation affecting social security must consider the political significance a given change entails and it also has to undergo normative economic analysis.Less
This chapter discusses the importance of social security to the economy and how it affects different members of society. Social security is important to all types of workers both young and old. For the older members of the labour force social security is important for helping them make retirement decisions. Social Security also affects younger labourers; since it determines the level of savings they need to provide for their retirement. Social Security also helps allocate risks in the economy. Because of its importance, any reform or any policy recommendation affecting social security must consider the political significance a given change entails and it also has to undergo normative economic analysis.
Jonah D. Levy
- Published in print:
- 2000
- Published Online:
- November 2003
- ISBN:
- 9780199240920
- eISBN:
- 9780191600180
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199240922.003.0007
- Subject:
- Political Science, Comparative Politics
The Bismarckian welfare state in France is financed by social security contributions to an even greater degree than is true in Germany. During the oil‐price crises of the 1970s and early 1980s, job ...
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The Bismarckian welfare state in France is financed by social security contributions to an even greater degree than is true in Germany. During the oil‐price crises of the 1970s and early 1980s, job losses could be contained through an expansion of nationalized industries and subsidies to private firms. This changed with the end of dirigisme in industry after 1983. Thereafter, early retirement was expanded to absorb the massive job losses caused by industrial restructuring. Since rising non‐wage labour costs impeded job creation in the private services, the government has shifted part of the burden to a special income tax, whereas attempts by successive governments to reduce the generosity of welfare benefits were typically blocked by large‐scale public protests.Less
The Bismarckian welfare state in France is financed by social security contributions to an even greater degree than is true in Germany. During the oil‐price crises of the 1970s and early 1980s, job losses could be contained through an expansion of nationalized industries and subsidies to private firms. This changed with the end of dirigisme in industry after 1983. Thereafter, early retirement was expanded to absorb the massive job losses caused by industrial restructuring. Since rising non‐wage labour costs impeded job creation in the private services, the government has shifted part of the burden to a special income tax, whereas attempts by successive governments to reduce the generosity of welfare benefits were typically blocked by large‐scale public protests.
Peter A. Diamond
- Published in print:
- 2002
- Published Online:
- October 2011
- ISBN:
- 9780199247899
- eISBN:
- 9780191697692
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199247899.001.0001
- Subject:
- Economics and Finance, Financial Economics, Public and Welfare
Social security systems are being reviewed and changed in many countries around the world. This book considers some of the key policy issues for design of a social security reform, as well as ...
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Social security systems are being reviewed and changed in many countries around the world. This book considers some of the key policy issues for design of a social security reform, as well as reviewing much of the academic literature on the positive and normative aspects of social security. The first chapter provides an examination of key policy issues of general concern includes the funding of social security, the comparison of defined benefit and defined contribution systems, notional defined contribution accounts, alternative approaches to organizing individual defined contribution accounts, and the provision of survivor benefits. The book then turns to the academic literature on the interactions between social security and the labor and capital markets, providing a non-technical overview of the existing literature and pointing-out gaps in current research findings. The second chapter reviews the impact on retirement decisions of forced savings, the use of an earnings or retirement test, mandated annuitization, recognizing heterogeneity in both life expectancy and possibly in risk classification for annuity pricing, and treatment of the family, particularly the use of joint-life annuitization. Also reviewed is the impact on labor supply at younger ages, considering mandatory savings and annuitization, contrasting defined benefit and defined contribution systems, and analysing alternative approaches to redistribution within social security. The final chapter covers issues of aggregate capital accumulation and risk-sharing, with the latter including the risks in annuitization, in the returns to capital, and in aggregate earnings. Also considered are the risks in the political process.Less
Social security systems are being reviewed and changed in many countries around the world. This book considers some of the key policy issues for design of a social security reform, as well as reviewing much of the academic literature on the positive and normative aspects of social security. The first chapter provides an examination of key policy issues of general concern includes the funding of social security, the comparison of defined benefit and defined contribution systems, notional defined contribution accounts, alternative approaches to organizing individual defined contribution accounts, and the provision of survivor benefits. The book then turns to the academic literature on the interactions between social security and the labor and capital markets, providing a non-technical overview of the existing literature and pointing-out gaps in current research findings. The second chapter reviews the impact on retirement decisions of forced savings, the use of an earnings or retirement test, mandated annuitization, recognizing heterogeneity in both life expectancy and possibly in risk classification for annuity pricing, and treatment of the family, particularly the use of joint-life annuitization. Also reviewed is the impact on labor supply at younger ages, considering mandatory savings and annuitization, contrasting defined benefit and defined contribution systems, and analysing alternative approaches to redistribution within social security. The final chapter covers issues of aggregate capital accumulation and risk-sharing, with the latter including the risks in annuitization, in the returns to capital, and in aggregate earnings. Also considered are the risks in the political process.
Jan‐Erik Lane, David McKay, and Kenneth Newton
- Published in print:
- 1996
- Published Online:
- January 2005
- ISBN:
- 9780198280538
- eISBN:
- 9780191601934
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/019828053X.003.0006
- Subject:
- Political Science, Reference
This section presents public finance statistics for OECD countries. It features tables on taxes, social security contributions, government final consumption, current disbursements and receipts, ...
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This section presents public finance statistics for OECD countries. It features tables on taxes, social security contributions, government final consumption, current disbursements and receipts, transfers, social expenditures, educational expenditures, military expenditures, official development assistance, and deficits.Less
This section presents public finance statistics for OECD countries. It features tables on taxes, social security contributions, government final consumption, current disbursements and receipts, transfers, social expenditures, educational expenditures, military expenditures, official development assistance, and deficits.
Robert L. Clark, Melinda S. Morrill, and Steven G. Allen
- Published in print:
- 2010
- Published Online:
- September 2010
- ISBN:
- 9780199592609
- eISBN:
- 9780191594618
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199592609.003.0003
- Subject:
- Business and Management, Pensions and Pension Management
As older workers approach the end of their working careers, they must make important decisions that will shape their economic well‐being during their remaining lifetimes. Specifically, they must ...
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As older workers approach the end of their working careers, they must make important decisions that will shape their economic well‐being during their remaining lifetimes. Specifically, they must decide when to retire, when to claim social security and company pensions, whether to annuitize 401(k) balances, and whether to take lump sums from defined benefit plans. Lack of knowledge or insufficient financial literacy may lead to regrettable decisions. This chapter assesses employer provided financial education as well as preretirement planning programs and examines their effectiveness in increasing knowledge and altering retirement behavior.Less
As older workers approach the end of their working careers, they must make important decisions that will shape their economic well‐being during their remaining lifetimes. Specifically, they must decide when to retire, when to claim social security and company pensions, whether to annuitize 401(k) balances, and whether to take lump sums from defined benefit plans. Lack of knowledge or insufficient financial literacy may lead to regrettable decisions. This chapter assesses employer provided financial education as well as preretirement planning programs and examines their effectiveness in increasing knowledge and altering retirement behavior.
