Posts Tagged ‘targeting’

targeting old age benefits in the Philippines

Wednesday, October 17th, 2018

The older persons of Bangued, a city with a population of nearly 50,000 and capital of the Philippine province of Abra, celebrated this year’s National Elderly Week by questioning government officials on distribution of benefits intended for the poor, in accord with the Expanded Senior Citizens Act of 2010. The targeting is by household, regardless of whether individual members of the household receive adequate care and nutrition. Even with perfect targeting, many senior citizens would be left in poverty. And the targeting is far from perfect. (more…)

universal pensions in India?

Friday, September 28th, 2018

Assam, a state in Northeast India with a population of more than 31 million, on October 2nd will launch universal pensions for residents 60 years of age or older. (more…)

Frank Field on universal pensions

Monday, September 24th, 2018

The British politician Frank Field, on the 70th anniversary of the famous Beveridge report that established a welfare state in his country, expressed very clearly my own views regarding the important but limited role of government in provision of old age pensions: there should be a universal pension for everyone of pensionable age, financed from general government revenue, regardless of the income or wealth of a beneficiary. Everyone is free to supplement this basic pension with his or her own savings, or wages from working beyond the official state retirement age.

This system, though simple, is rarely put into practice. (more…)

towards universal pensions in the Philippines

Monday, September 10th, 2018

A Philippine Senator has introduced a bill in Congress to double the social pension for his elderly countrymen and remove the means test, leaving only a pension test. If his bill passes, every resident aged 60 years and older without access to a contributory pension will receive a monthly benefit of one thousand Philippine pesos (approximately 18.50 US dollars). Pension coverage, currently 72% of the country’s senior citizens, would increase to 100%.

The proposed social pension is far below the poverty line (8,378 pesos a month in 2014), but would mark a beginning towards guaranteed basic pensions for all in the Philippines. (more…)

targeting the poor does not work

Tuesday, September 4th, 2018

Targeting the poor provides opportunity for corruption in delivery of benefits, even when the beneficiaries are older persons. Here is an example from Nueva Ecija, a province in the Central Luzon region of the Philippines. (more…)

‘universal’ pensions in South Korea

Wednesday, August 29th, 2018

The only thing universal about South Korea’s “universal pension system” is the rate of contribution. The more a worker contributes, the higher the pension she receives. With no contributions, there is no pension.

The pension system is supposedly pre-funded, but the contributions are not sufficient to pay the pension promises. Actuarial projections predict that assets in the fund will be exhausted by the year 2057. To prevent this, the government proposes to either (1) raise contributions to 10.8% of salary from the current 9% rate or (2) lower the promised income replacement from 45% to 40% “while raising contributions to 13 percent by 2033”. (more…)

basic income pilot in a California city

Monday, August 27th, 2018

Beginning in 2019, a demonstration of basic income will begin in Stockton, a city of about 300,000 residents, in California’s Central Valley. One hundred households will be selected randomly from neighbourhoods where the median household income is at or below the city median of $46,033 a year. One person, 18 years of age or older, in each selected household will receive $500 a month for 18 months. It is not clear how the recipient within each household will be selected. Benefits will be unconditional, meaning that there are no work requirements and no restrictions on how the money is spent. This makes the experiment more universal than most of this type. The benefits will be funded entirely from private donations, so there is little chance that payments will continue beyond the 18-month period. (more…)

New Zealand’s universal pension is in danger

Saturday, June 16th, 2018

New Zealand has a universal pension scheme that is the envy of the world. It is simple, affordable, and eliminates poverty in old age. When a qualified resident reaches the state pension age, he or she receives a basic, flat pension, regardless of income, wealth or employment history. This benefit, called ‘Superannuation’, is financed from general government revenue. Earmarked taxes are not levied to support it, but benefits are taxable as regular income, so net benefits are lower for pensioners who have income from work or from savings. (more…)

expanding old age pensions in Bangladesh

Wednesday, May 30th, 2018

A daily newspaper in Bangladesh reports that the finance ministry has announced “plans to introduce a universal pension system for both public and private sector employees”. Reading the column, however, shows that the scheme is not universal. It is contributory, and private. If there are no contributions, there will be no old age pension. Government involvement will be limited to matching grants equal to 25 to 50% of the contributions of low-income savers.

The scheme seems to have been promoted by the World Bank. (more…)

private and social pensions in Latin America

Sunday, April 8th, 2018

FIAP (Federación Internacional de Administradoras de Fondos de Pensiones/International Federation of Pension Funds Administrators), the Latin American trade group of private administrators of government-mandated contributory pensions, now acknowledges the need for social pensions, financed from general government revenue. Private managers of Latin American pension funds in the past tended to ignore social pensions, at least in part because these provide little or no opportunity for private profit.

A recent 9-page FIAP report begins by explaining the need for social pensions: (more…)