Medicare and the Marketplace

1. PENSION REFORMS ACROSS EUROPE: challenges, institutions and innovation David Natali

2. Pensions in Europe, European Pensions David Natali, P.I.E. Peter Lang, Brussels

3. Pension Reforms in Europe • Challenges • Population ageing • Budgetary strains • New social risks • EU integration • Institutions inherited from the past • European pension models • Innovation (Convergence/Divergence?) • Public/Private Mix Reforms

4. Pension Models in Europe (end 1980s)

5. Pension Models in Europe (end 1980s)

6. Convergence or Divergence between pension systems ? • Persistent divergence • ‘Regime theories’ (Esping-Andersen; Pierson and Myles) • Renewed convergence • ‘the spread of the multi-pillar paradigm’ (Bonoli; Bonker; Arza) • ‘Passive privatization’ (Bonoli et al; Bridgen and Meyer) • ‘Active or coordinated privatization’ (Leisering; Barr)

7. Passive or Active Privatization? • Passive Privatization • ‘to cut public protection against social risks without the parallel launch of an effective alternative provision’ (retirement-savings gap) • the ‘residualization’ of the role of the state

8. Passive or Active Privatization? • Active Privatization • the state reduces the direct provision of social benefits but maintains an active role in regulating and/or subsidizing the activity of non-governmental actors • New policy instruments for the state

9. Passive or Active Privatization? • extent of compulsion, voluntary or mandatory participation to supplementary pension funds • allocation of administration tasks, collecting contribution, paying benefits, managing state pension funds in competition with private funds

10. Last wave of reforms

11. Convergence or Divergence? • Convergence • Public pensions’ retrenchment • Increasing role for supplementary private schemes • Progressive abandoning of the single-pillar design • From income-maintenance to salary-savings

12. Towards one single European model ?

13. Convergence/Divergence

14. Pre-reform Public/Private Mix

15. Post-reform Public/Private Mix

16. Passive or Active Privatization ? • extent of compulsion • Multi-pillar I gen., (UK, auto-enrolment); collective bargaining • Multi-pillar II gen. (PL, EE) mandatory participation • Social Insurance in Transition (IT, BE; Sl) progressive abandoning of voluntary participation (auto-enrolment; collective bargaining)

17. Passive or Active Privatization ? • administration tasks • Public collection of contributions (SWE, PL; EE) • Monitoring, collection of information (SWE, UK, PL) • Competition between private and public funds (default fund) (SWE, UK)

18. Future Risks: social adequacy of public/private mix

19. Future Risks: 3 scenarios for the future of pensions in Social Insurance systems • Transition to Multi-pillar systems • Lower public protection will be supplemented by widespread supplementary schemes (Multi-pillar system) • Transition towards the ‘Bismarckian Lite’ model, similar to that of the USA • Lower public protection with uneven and limit private pensions’ coverage • The future reverse of reforms introduced in the last twenty years

20. Pensions in Europe, European Pensions David Natali, P.I.E. Peter Lang, Brussels