Towards an equitable and sustainable points system. A proposal for pension reform in Belgium
(2020) Journal of Pension Economics and Finance — Vol. 19, n° 1, p. 49-79 (2020)
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- Abstract
- We describe the points system as proposed by the Belgian Commission for Pension Reform 2020–2040. Intragenerational equity can be realised through the allocation of points within a cohort. The intergenerational distribution is determined by fixing the value of a point for the newly retired and a sustainability parameter for the actual retirees. The value of the point links pensions to the average living standard of the employed population. We propose an automatic adjustment mechanism, in which a key role is played by the career length. This mechanism induces a balanced distribution of the burden of demographic and economic shocks over the different cohorts.
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Citations
Schokkaert, E., Devolder, P., Hindriks, J., & Vandenbroucke, F. (2020). Towards an equitable and sustainable points system. A proposal for pension reform in Belgium. Journal of Pension Economics and Finance, 19(1), 49-79. https://doi.org/10.1017/s1474747218000112 (Original work published 2020)