1 / 10

Luxembourg’s experience in compiling the ESA 2010 supplementary table on pension entitlements

Luxembourg’s experience in compiling the ESA 2010 supplementary table on pension entitlements. John HAAS WORKSHOP ON PENSIONS 22-24 April 2013 Canberra - Australia. ESA 2010 is a regulation ... which is:. Heaven. Hell. Administrative uses hinder application of „better“ solutions

lorand
Download Presentation

Luxembourg’s experience in compiling the ESA 2010 supplementary table on pension entitlements

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Luxembourg’s experience in compiling the ESA 2010 supplementary table on pension entitlements John HAAS WORKSHOP ON PENSIONS 22-24 April 2013 Canberra - Australia

  2. ESA 2010 is a regulation ... which is: Heaven Hell Administrative uses hinder application of „better“ solutions Comparability issues may bloc search for optimal solutions Slow (and ever slower) procedures • Institutional cooperation • Clear methodological choices made • Extensive guidance and interpretation by Eurostat • Comparability across EU • Compulsory methods and transmission program

  3. Main hypotheses of model • For pensioners • Life expectancy  EuroPop tables • Indexation to: • Prices  „échelle mobile“ (hypo: 2%) • Real wages  „ajustement“ (hypo: 1.5%) • For current workers • Average age of retirement  60 • Probability of not reaching age of retirement

  4. This is well reflected for the pensions issue • Extensive preparation • Eurostat/ECB Task Force • 2009 Workshop by Eurostat/ECB • Guidance handbook • Pilot compilation exercise • Looooooooong negociations at Council level • Fear over political implications of possible „wrong“ interpretation • Compulsory delivery only from 2017 on at t+24 deadline only • Publication not yet fully assured

  5. Luxembourg pension system in a nutsshell • General scheme = define benefit (pay as you go) • Formula: flat rate + wages + length of career • Exception = 3 special schemes • Civil servants • 2 public corporations • BUT: harmonized by 2001 reform • Coverage = old age, survivors, disability, early retirement • Automatic adjustment • Price changes (recent modulation) • Real wage increases

  6. Work on supplementary table • Pilot exercise on supplementary table • Presentation at Eurostat/ECB workshop in April 2009 • Update after • Collaboration with IGSS (Social Security) • Special statistical unit has • Actuarial model • Corresponds well to ADL / PBO options • Coherence with Ageing Working Group assumptions • Very detailed individual data set (Data Warehouse) • Every single pensioner covered • Almost every single active person covered

  7. Indexation of pensions: is this PBO? • There is an adjustment for real wages • Automatic every 2 years • BUT: there is no simulation of careers of current workers • ESA 2010 § 17.177 ...the choice of an ABO or PBO approach be based on the underlying benefit formula in the pension scheme. Where this formula includes implicitly or explicitly a factor for wage increases (before or after retirement) then a PBO approach is followed. Where such a factor is not present, an ABO approach is used.  Thus our calculation should be PBO

  8. Provisional results for table 29 • Column H (Social security pension schemes) • 315% of GDP in 2008 • Column G (Defined benefit schemes classified in general government) • 57% of GDP in 2008 • Other columns?? (Non general government managed pension schemes) • Work on-going • Should be relatively small (general scheme = „very generous“)

  9. Future work • Do another update of pilot exercise table • More detailed data from IGSS to „feel“ impact of hypotheses • Filling in the data for supplementary pension schemes manages by non-general government units • Supervisory authority (social security – IGSS) contacted • Plan to do voluntary transmission of table 29 in September 2014 • Not wait till 2017

  10. Thank you for your attention QUESTIONS?

More Related