Actuarial Outpost
 
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Pension - Social Security
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Reply
 
Thread Tools Display Modes
  #191  
Old 05-18-2017, 11:09 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 76,736
Blog Entries: 6
Default

BRAZIL

http://www.reuters.com/article/us-br...-idUSKCN18B2ER

Quote:
Brazil's Temer acknowledges pension reform still short on votes


Brazilian President Michel Temer acknowledged on Monday that he may not have the votes at present to pass his pension reform bill in the lower house of Congress, and the key measure for fiscal savings might not face a floor vote until late May.

Temer said in a interview with radio stations that his coalition government will only put the pension reform to the vote when it has guaranteed the support of between 320 and 330 lawmakers to clear the 308 votes needed for approval.

"It is possible that will happen in the last week of May," Temer said.

The measure aimed at curbing social security benefits, the main cause of Brazil's gaping budget deficit, needs to be approved twice by two-thirds of the lawmakers in both chambers of Congress.

Investors are watching the fate of the pension reform closely because it will be a gauge of Brazil's commitment to fiscal discipline. That will be instrument to restoring confidence and investment and pulling the country from a two-year recession.

Temer had hoped to have pension reform enacted by mid-year, but it is now clear that it will not advance in the Senate until the second half of the year and July at the earliest.

To convince lawmakers worried that the unpopular measure will hurt them at the polling booth next year, Temer will have to make new concessions.

Government officials say the bill has already been diluted and lost 25 percent of the planned fiscal savings, which have dropped to around 600 billion reais ($194 billion).

The bill faces widespread resistance from Brazilians who would be forced to work more years to retire with full benefits. In the costly current social security system, they retire on average at age 54.
Reply With Quote
  #192  
Old 05-20-2017, 06:48 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 76,736
Blog Entries: 6
Default

TAIWAN

http://www.economist.com/news/asia/2...nd?frsc=dg%7Ca

Quote:
Superannuated
Taking on Taiwan’s ruinous and partisan pension system

Pensioners hate the cuts; young people don’t think they go far enough


Print edition | Asia
May 18th 2017 | TAIPEI
THE protests outside parliament got so ferocious that the 2,000 policemen defending the building barricaded it with barbed wire. That was soon festooned with angry placards. Inside, opposition politicians sought to disrupt parliamentary business: they seized the podium, and brawls broke out. In Taiwan, as everywhere else, reining in expensive pensions is not easy. But Tsai Ing-wen, the president, seems determined to press on. The current system, she said last month, is on “the brink of bankruptcy”.

The government’s liabilities have swelled to almost NT$18trn ($597bn), nine times its total annual expenditures. That is divided among funds for different professions, in which contributions from current workers help to finance payments to pensioners. The fund for civil servants is projected to go bust by 2031; the one for teachers by 2030; the one for private-sector workers in 2027; and the one for the armed forces in 2020.

The root of the crisis lies in Taiwan’s rapidly declining birth rate and growing longevity, which means that there are fewer workers to support the swelling ranks of the old. In 2015 Taiwanese women were projected to have just 1.2 children on average over the course of their lives, even as life expectancy passed 80 for the first time. A government study found that in 1996 there were nine working people for each pensioner. The ratio fell to six to one in 2015 and will be less than three to one by 2031. Sluggish economic growth and stagnant government revenues provide no way out.

Politics has made matters worse. When the Kuomintang party (KMT) fled to Taiwan in 1949, having lost China’s civil war, it filled the army and public service with mainlanders and provided them with generous pensions. Native Taiwanese worked mainly in the private sector. Taiwan began to democratise in 1987, but the KMT continued to dominate parliament until last year, thanks in part to strong support from the public sector, whose expensive pensions it continued to defend. Over 450,000 retired teachers, soldiers and bureaucrats receive an annual payment of 18% of the lump sum they built up in their pension account before 1995—a commitment that cost the government NT$78bn last year, or 4% of its spending. Benefits are not quite so generous for those who have retired more recently, but civil servants can still stop work with lavish benefits at 55.

Ms Tsai and her Democratic Progressive Party want to reduce the 18% payout to 6% over six years, subject to a minimum payment to protect poorer pensioners from poverty. They also want to cut monthly pension payments for other civil servants and teachers while raising the retirement age to 65. In addition, the president has pledged to inject an extra NT$20bn a year into the private-sector fund, which is much less generous. All this, the government reckons, will extend the life of Taiwan’s pension funds by just 10 to 15 years or so.

Lin Wan-i, the minister in charge of these reforms, says young people want even more sweeping changes. They worry that there will not be a pension for them by the time they retire. Moreover, they consider the huge payouts to the old unfair. Taiwanese workers earn about NT$39,500 a month on average. A typical monthly salary for a new university graduate is just NT$22,000. But retired high-school teachers receive a whopping average pension of NT$68,340 a month.

But pensioners see Ms Tsai’s plans as a breach of trust. More than 100,000 people demonstrated against the reforms last year. The most dogged protesters have set up a camp outside parliament. And there is the delicate matter of reforming military pensions at a time of heightened tensions with China. Ms Tsai has not yet announced her plans for that, but Mr Lin says any changes will be less drastic.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 06:37 PM.


Powered by vBulletin®
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.10813 seconds with 9 queries