Private sector employee pensions and the transition to a universal point-based pension system: Impact study on typical full-career trajectories under the social security ceiling
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2021
- ISIDORE Id: 10670/1.75efec...
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pension reform minimum pension wage trajectories pension reform minimum pension wage trajectoriesSujets proches
Professional life Careers Vocation, Choice of Student guidance Career choice Careers Guidance, Vocational Business, Choice of Vocational opportunities Guidance, Student Career counseling Choice of profession Career patterns Career planning Occupational choice Profession, Choice of Occupation, Choice of Professional services Jobs Careers Career patterns Jobs Careers Trades Career patternsCiter ce document
Frédéric Gannon et al., « Private sector employee pensions and the transition to a universal point-based pension system: Impact study on typical full-career trajectories under the social security ceiling », Économie & prévision, ID : 10670/1.75efec...
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The introduction of a universal point-based system modifies the link between labour income and pension benefits. In this paper, we show that for private-sector workers with full careers whose earnings fall below the social security contribution ceiling, the new system effects a redistribution in favour of the lowest-wage trajectories; immediate conversion of pension rights acquired under the previous system into points is also more advantageous for low-wage trajectories than under the multiple calculation rules of earlier schemes; careers with low-contribution years can be expected to incur significant declines in benefits; and for low-wage careers, subsequent increases in the minimum pension may in some cases lead to a higher perceived effective pension. JEL Classification: H55, D31, I38
