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Pension in sentence

830 examples of Pension in a sentence

As the elderly increasingly outnumber working-age people, pressure is building on the labor force, and tax revenues, needed to service government debt and fund public services and pension systems, are diminishing.
Such an outcome would coincide with – and exacerbate the effects of – an adverse demographic shift that will constrain fiscal revenues and drive up costs for universal health care and pension benefits.
In Greece, the IMF, together with its European partners, required the government not just to cut expenditures, but to undertake far-reaching tax, pension, judicial, and labor-market reforms.
Of course, the discipline of the market is not perfect: the bond market does not “see” implicit future liabilities (like promised pension payments) to any great degree.
Consider the intemperate responses to recent proposals by Poland’s government to resolve its pension system’s problems.
Since the mid-1990’s, many countries in Central and Eastern Europe have adopted the so-called three-pillar pension system, comprising a publicly managed, pay-as-you-go (PAYG) pillar; a privately managed, mandatory, defined-contribution pillar; and a supplementary, voluntary private pillar.
Like many pension schemes, compulsory employer and employee contributions underpin the system.
The problem with the reform, however, lay in the decision to divert one-third of the compulsory pension contributions from the PAYG pillar to create a funded component of the system.
This second pillar remained within the state system, but its management, through “open pension funds” (OFEs), was outsourced to the private sector.
The OFEs failed to boost overall savings, because the increase in public debt almost exactly matched the pool of assets in the funded part of the state pension system.
As a result, the government proposed replacing this unnecessary debt in the pension system with an equivalent claim on accounts in the PAYG pillar, indexed by nominal GDP.
After all, the switch to a defined-contribution system, with actuarially justified pensions, guarantees the pension system’s long-term sustainability.
In this way, Poland’s pension funds will also make a major contribution to the country’s capital markets.
Indeed, the sobering lesson of Poland’s experience is that pension reform is difficult enough to implement in a strong economy, so no government can afford to wait until hard times force it to act.
Reforming FrancePARIS – Before this year has ended, the French parliament will have enacted a comprehensive pension overhaul, which is essential not only to putting France’s public finances on a sound and sustainable footing, but also to shoring up confidence in the eurozone in 2014 and beyond.
Nonetheless, further effort was needed to strengthen the pay-as-you-go pension system by the equivalent of one percentage point of GDP.
Most important, for the first time, pension reform has been carried out in France in continuous consultation with employers’ associations and trade unions.
Moreover, the upcoming pension reform caps 18 months of significant steps toward fiscal consolidation that have improved the effectiveness of public spending while financing our priorities: education, the transition to a less carbon-intensive economy, employment, health care, and security.
Despite efforts to cut expenditures and boost tax receipts, current and prospective obligations (including pension liabilities) far exceed any feasible increase in government revenues.
For example, changes in financial markets (including the large amounts of money in sovereign wealth funds and public pension funds) provide opportunities for new development partnerships, which the New Development Bank can help to catalyze and orchestrate.
Reliable statistics were not available in all countries, and for years there was no political will to protect public budgets from the impact of rapidly aging populations on pension and health-care costs.
On the contrary, a common external constraint on fiscal behavior is needed as a joint safeguard against an unsustainable accumulation of public debt that could affect financial stability and inflation throughout the EU - a risk aggravated by the impact of aging populations on pension systems.
And I have not even mentioned such minor things as tax reform, pension reform, and privatizing land ownership.
Sovereign wealth funds, pension funds, global investment banks, and hedge funds do not invest only in their own backyard.
CalPERS (the California Public Employees’ Retirement System), a $300 billion pension fund, has published its corporate governance principles, which include boardroom diversity, fair labor practices, and environmental protection.
This should occur, first and foremost, through pension and insurance funds, which in China amount to less than 3% the size of the banking system, compared to more than 60% in the advanced economies.
Consider the effects of pension “reforms” that force individuals to bear more risk, or of labor-market “reforms” that, in the name of boosting “flexibility,” weaken workers’ bargaining position by giving employers more freedom to fire them, leading in turn to lower wages and more insecurity.
US consumption, the single biggest driver of global growth, is surely headed to a lower level, on the back of weak housing prices, rising unemployment, and falling pension wealth.
As it stands, however, less than 1% of the $68 trillion managed by pension funds, life insurance companies, and others are channeled toward infrastructure projects.
And while the coalition’s plan also promises higher contributions to the EU budget and more spending on the mothers’ pension and low-income households, it does not specify how those increases will be reconciled with a balanced budget.
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