Social Security Generosity, Budgetary Deficits and Reforms in North Cyprus
AbstractThis paper estimates the fiscal burden of the Pay-As-You-Go (PAYGO) Social Insurance Pension System that was closed in 2008 to new members, and analyzes the appropriateness of the 2008 reforms that introduced the new Social Security Pension System in the TRNC. To calculate the overall deficit, estimates are made from the difference between the present values of future contributions and the pension benefits. The magnitude of the unfunded cost makes any marginal policy reform ineffective in eliminating the excessive fiscal burden on the current and future taxpayers for the next three decades. Major structural reforms will be required.
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Bibliographic InfoPaper provided by JDI Executive Programs in its series Development Discussion Papers with number 2012-01.
Length: 33 pages
Date of creation: Jan 2012
Date of revision:
pay-as-you-go; social insurance; social security; pension liabilities; implicit pension debt; pension indexing;
Find related papers by JEL classification:
- H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
- H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt
This paper has been announced in the following NEP Reports:
- NEP-AGE-2012-03-28 (Economics of Ageing)
- NEP-ALL-2012-03-28 (All new papers)
- NEP-IAS-2012-03-28 (Insurance Economics)
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