Research Catalog

Title

Funding in Public Sector Pension Plans [electronic resource]: International Evidence / Eduard Ponds, Clara Severinson and Juan Yermo

Author

Ponds, Eduard.

Publication

Paris : OECD Publishing, 2011.

Details

Additional Authors

• Severinson, Clara.
• Yermo, Juan.

Description

41 p.; 21 x 29.7cm.

Summary

Most countries have separate pension plan for public sector employees. The future fiscal burden of these plans can be substantial as the government usually is the largest employer, pension promises in the public sector tend to be relatively generous, and future payments have to be paid out directly from government revenues (pay-as-you-go) or by funded plans (pension funds) which tend to be underfunded. The valuation and disclosure of these promises in some countries lacks transparency, which may be hiding potentially huge fiscal liabilities that are being passed on to future generations of workers. In order to arrive at a fair comparison between countries regarding the fiscal burden of their DB public sector pension plans, this paper gathers more evidence on public sector pension plans regarding the type of pension promise and quantifies the future tax burden related to these pension promises. The reported liabilities are recalculated using both a fair value approach (local market discount rates) and a common, fixed discount rate across all countries which reflects projected growth in national income. We also estimate for a number of plans from a sample of OECD countries the size of the net unfunded liabilities in fair value terms as of the end of 2008. This fiscal burden can also be interpreted as the implicit pension debt in fair value terms.

Series Statement

OECD Working Papers on Finance, Insurance and Private Pensions, 2079-7117 ; no.8

Uniform Title

OECD Working Papers on Finance, Insurance and Private Pensions, no.8.

Subject

Finance and Investment

LCCN

10.1787/5kgcfnm8rgmp-en

OCLC

oecd-lib-002566

Author

Ponds, Eduard.

Title

Funding in Public Sector Pension Plans [electronic resource]: International Evidence / Eduard Ponds, Clara Severinson and Juan Yermo

Imprint

Paris : OECD Publishing, 2011.

Series

OECD Working Papers on Finance, Insurance and Private Pensions, 2079-7117 ; no.8

OECD Working Papers on Finance, Insurance and Private Pensions, 2079-7117 ; no.8.

Connect to:

http://dx.doi.org/10.1787/5kgcfnm8rgmp-en

Indexed Term

Finance and Investment

Added Author

Severinson, Clara.

Yermo, Juan.

Other Standard Identifier

10.1787/5kgcfnm8rgmp-en doi