Towards an equitable and sustainable points system. A proposal for pension reform in Belgium

Copyright © Cambridge University Press 2018 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.

Publication year:2020

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BOF-publication weight:0.5

CSS-citation score:1

Authors:International

Authors from:Higher Education

Accessibility:Closed