The Fiscal Burden of the Legacy of the Civil Service Pension Systems in Northern Cyprus
AbstractThis paper estimates the fiscal burden of the Pay-As-You-Go (PAYGO) civil service pension systems that were closed in 2008 to new members in North Cyprus. At that time, a new pension system was introduced for the newly hired government employees and new private sector workers. Estimates are made of the difference between the present values of future contributions and the pension benefits. This approach measures the governmentâ€™s net liabilities related to the accruals of the pension rights received by the individuals covered through these plans for the period from 2009 to the death of the last member in the system. The estimated unfunded cost of these civil service pension plans is 7.3 billion euros or 276% of GDP. This amount of implicit debt is significantly higher than 5.8 billion euros that has been estimated as the amount of cash compensation for land and property that would need to be paid in order to reach an agreement for a solution to the Cyprus conflict.
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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 1284.
Length: 27 pages
Date of creation: Nov 2011
Date of revision:
civil service pensions; pension liabilities; implicit pension debt; pension indexing; North Cyprus;
Other versions of this item:
- Altiok, Hasan U. & Jenkins, Glenn P., 2013. "The fiscal burden of the legacy of the civil service pension systems in northern Cyprus," Journal of Pension Economics and Finance, Cambridge University Press, vol. 12(01), pages 92-110, January.
- Glenn P. Jenkins & Hasan U. Altiok, 2013. "The Fiscal Burden of the Legacy of the Civil Service Pension Systems in Northern Cyprus," Development Discussion Papers 2013-06, JDI Executive Programs.
- 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
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