PENSIONS IN THE EUROPEAN UNION: ADAPTING TO ECONOMIC AND SOCIAL CHANGE

Transcription

1 PENSIONS IN THE EUROPEAN UNION: ADAPTING TO ECONOMIC AND SOCIAL CHANGE

2 PENSIONS IN THE EUROPEAN UNION: ADAPTING TO ECONOMIC AND SOCIAL CHANGE Edited by Gerard Hughes The Economic and Social Research Institute, Dublin and Jim Stewart Trinity College, Dublin " ~. SPRINGER SCIENCE+BUSINESS MEDIA, LLC

3 Library of Congress Cataloging-in-Publication Data Pensions in the European Union: adapting to economic and social change / edited by Gerard Hughes and Jim Stewart. p. cm. IncIudes bibliographical references and index. Papers presented at a meeting. ISBN ISBN (ebook) DOI / Old age pensions--european Union Countries--Congresses. 2. Pensions--European Union countries--congresses. I. Hughes, Gerard. 11. Stewart, lim, HD E85 P ' 2 '094--dc Copyright Cl 2000 by Springer Science+Business Media New York Originally published by Kluwer Academic Publishers, New York in 2000 Softcover reprint of the hardcover 1 st edition 2000 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, mechanical, photo-copying, recording, or otherwise, without the prior written permission of the publisher, Springer Science+Business Media, LLC. Printed on acid-free paper.

4 CONTENTS Contributors Acknowledgements I. Introduction Emmanuel Reynaud vii xi 1 Part I POPULATION AGEING, COMPETITIVENESS AND RETIREMENT 2. Demography, the Labour Market and Competitiveness Pierre Concialdi 3. Retirement Age: Public Policy and Employer Policies in Europe and the United States Lucy aproberts Part II PENSION FINANCING AND ECONOMIC GROWTH 4. Pension Financing, the Substitution Effect and National Savings Gerard Hughes The Effects of a Fully Funded Pension System on Individual Savings Behaviour Christina Oling The Control and Centralisation of Pension Fund Investment in the United Kingdom Richard Minns A Political Economy Approach to Pension Financing Felice Roberto Pizzuti 83 Part ill ADAPTING PENSION SYSTEMS TO MEET CHANGE 8. Equity Within and Between Generations: Pension Systems and Equity Bryn Davies Contributions and Taxes for Financing Public Pension Expenditure: Looking for an Adequate Structure of Finance Winfried Schmahl 127

5 10. Personal Pensions in the UK, the Mis-selling Scandal and the Lessons to be Learnt Sue Ward 11. The New Swedish Pension System Eskil Wadensjo Part IV PENSIONS AND SOCIAL PARTNERSHIP 12. The Decision-Making Process in the German Pension System Heinz-Dietrich Steinmeyer Supplementary Pension Plans and Collectively Agreed Schemes Jacques-Andre Schneider 14. The Impact of Industrial Relations on the Structure of Supplementary Pensions in Scandinavia Einar Overbye l Part V CONCLUSIONS 15. Pay-As-You-Go Versus Capital Funding: Towards a More Balanced View in Pension Policy - Some Concluding Remarks Winfried Schmahl 195 Index 209 vi

6 Contributors LUCY APROBERTS is an economist at the Institut de Recherches Economiques et Sociales (IRES) (Institute for Social and Economic Research) in France. Her work is centred on the interplay between occupational welfare schemes and public programmes. She has done research on occupational benefit schemes in France, notably concerning death-in-service, invalidity and complementary health insurance. She has also written on retirement systems, particularly about Social Security and occupational pensions in the United States. PIERRE CONCIALDI is an economist at the Institut de Recherches Economiques et Sociales (IRES) (Institute for Social and Economic Research) in France. He is the author of a number of studies on income distribution, social protection and the financing of social security, and tax progressivity and low-wage employment. BRYN DAVIES is an actuary based in London. He provides advice to trade unions on supplementary pension plans. He also writes on pensions and is the author of reports for the Institute of Public Policy Research in the U.K. on reforming occupational pensions and is co-author with Sue Ward of a report on women and personal pensions for the Equal Opportunities Commission. GERARD HUGHES is an economist at The Economic and Social Research Institute in Dublin. He is the author of reports on social security, civil service pensions, and occupational pension coverage in Ireland. He has acted as a consultant to the OECD on pensions and labour market issues and is the author of the OECD country report on private pensions in Ireland. RICHARD MINNS is an international researcher on pension funds and economic development. His research interests include the globalisation of pension funds and international investment. He is the author of Pension Funds and British Capitalism: The Ownership and Control of Share holdings (1980), as well as many articles on pension funds and targeted investment. He has worked on local development programmes in Albania, Armenia, and Russia supported by the British Government and the United Nations Industrial Development Organisation (UNIDO). CHRISTINA OLING is an economist who works for the Commune of MaXIllo, Finland. She graduated in economics from Abo Akademi University, Finland. Her research interests include the macroeconomic effects of pension systems and the intergenerational effects of welfare transfers. EINAR OVERBYE is a senior researcher at NOVA - Norwegian Social Research, a government sponsored research institute in Oslo. He received his doctorate in political science from the University of Oslo. Overbye has studied social security issues since 1987, with a special emphasis on the public-private mix. He has

7 written extensively on occupational pensions, including public service pensions with particular reference to the Scandinavian countries and he has also written on pension politics in Australia, New Zealand, and the United States. FELICE ROBERTO PIZZUTI is professor of Economic Policy at the University of Rome "La Sapienza". He is a member of the Board of Directors of the Italian national social security institute for public administration employees (INPDAP) and adviser to the Italian Minister of Labour and Society Security. He is the author of a number of essays and reports on economic theory and policy, especially on the welfare state and pensions with particular reference to globalization and social protection. EMMANUEL REYNAUD is a sociologist and President of the European Network for Research on Supplementary Pensions (ENRSP). Since February 1998, he has been Chief of the Planning, Development and Standards Branch of the Department of Social Security at the International Labour Office (ILO). Previously he was a researcher at the Institut de Recherches Economiques et Sociales (IRES) (Institute for Social and Economic Research), France. He has published numerous articles and studies on the development of pension systems in industrialised countries. WINFRIED SCHMAHL is a professor of economics and Director of the Department of Economics of the Centre for Social Policy Research, University of Bremen, Germany. His research is focused on the interaction of the economy, demography and social security, and pension policy. He has served on a number of commissions of the German Parliament and of the Federal Government. Since 1986 he has been chairman of the permanent Social Security Advisory Council on Pension Policy of the German Government. JACQUES-ANDRE SCHNEIDER is a practising lawyer in the fields of occupational pensions, social and private insurance, and labour law and a senior lecturer (part-time) at the Law Faculty and Actuarial Science Institute of the University of Lausanne, Canton ofvaud, Switzerland. He is also Vice-President of the Federal Occupational Pensions Appeals Commission and a member of the Federal Occupational Pensions Advisory Committee. HEINZ-DIETRICH STEINMEYER is a professor of civil law, labour law and social security law at the University of MUnster in Germany. He is the author of books on supplementary pensions in Germany and has served as a consultant for the European Commission and the International Labour Office (ILO) on pensions. JIM STEWART is a lecturer in finance in the School of Business Studies in Trinity College, Dublin. He is interested in pension funds as shareholders and their influence on corporate governance. He has undertaken research on the effects of pension funds on capital markets. viii

8 SUE WARD is an independent pensions consultant. She has worked for the Trades Union Congress and is the author of The Essential Guide to Pensions (pluto Press, 1990), The Pensions Handbook (Age Concern Books, 1998), Women and Personal Pensions (HMSO, 1992) (with Bryn Davies) and a number of other books and articles on the subject. She is also a member of the Board of the Occupational Pensions Authority. ESKIL W ADENSJO is professor of labour economics at the Swedish Institute for Social Research, Stockholm University. His research covers labour economics and social policy. He is the author of articles, reports and books on pension systems. Together with Martin Rein he edited Enterprise and the Welfare State (1997), a book on the development of supplementary pensions in different countries. He has served as a consultant for the Swedish government on pension reforms. IX

9 Acknowledgements The chapters in this book are based on papers presented at the European Network for Research on Supplementary Pensions (ENRSP) conference "Pensions in the European Union: Adapting to Economic and Social Changes" which was organised by Gesellschaft fiir Versicherungwissenschaft und -gestaltung e.y. (GVG) (Association for Social Security Research and Policy) and ENRSP and held in Munster, Germany on June The papers have been revised and updated to take account of developments since the conference. The conference was made possible by support from the European Commission, the Federal Ministry for Labour and Social Affairs, Germany, the Landesversicherungsanstalt Westfalen, Germany, and the Observatoire des Retraites, France. The members of the scientific committee for the conference were Emmanuel Reynaud (president, ENRSP), Bryn Davies, Gerard Hughes and Heinz-Dietrich Steinmeyer and the local organisers for GVG were Franziska Kuhlmann and Volker Leienbach, and for ENRSP Heinz Dietrich Steinmeyer. Earlier versions of Chapters 1, 2, 4, 7, 8, and 12 were published by L'Harmattan, France in 1998 in French in a book edited by Emmanuel Reynaud entitled Les Retraites dans L 'Union Europeenne: Adaptation aux evolutions economiques et sociales. We are grateful to The Economic and Social Research Institute for its support in the preparation of the book for publication, to Mary Cleary and Regina Moore for their skill and efficiency in converting the papers to a uniform camera-ready layout, and to Pat Hopkins for help with the charts. Gerard Hughes and Jim Stewart The Economic and Social Research Institute, Dublin Trinity College, Dublin