Changes to pension systems

Although it is not their main purpose, the pension systems in most countries factor in marriage and/or children. The French pension system, in particular, incorporates family concerns, by providing for the surviving spouse after the death of the other spouse (survivor’s pension) and by granting entitlements depending on the number of children (family entitlements). Those provisions currently account for almost 20% of total spending on pensions in France. They make a substantial contribution to reducing pension disparities between men and women, which are nevertheless likely to remain large in the future, despite women’s increased participation in the labour force. The scale of these provisions and likely and planned changes to them in many countries prompt three questions:- What is the rationale behind the provision for family status by pension systems and how are they implemented in an environment that has changed radically since they were first introduced?- What compensations do these provisions make?
- What knowledge do individuals have of these provisions? And do they support them?

Special attention is paid to the survivor’s pension, a provision for widowhood that awards a percentage of the deceased spouse’s pension to the surviving spouse. Research has highlighted the important role of the survivor’s pension, which avoids a brutal decline in the standard of living of widowed people after the death of their spouse.

The concept of generosity is encountered frequently in the literature on pension systems. It is central to comparisons between systems in the same countries or between countries. The concept is also frequently referred to when reforms are implemented to restrict the supposed generosity of a pension system or a particular scheme. However, this common term has many possible meanings. Research has identified two aspects of the generosity of a pension system, internal and external, and the relevant indicators (the retirement age, the size of the pensions paid, the existence and level of the minimum pension for internal generosity, and coverage of the system and income of elderly people for external generosity). Work is under way to construct a composite indicator, modelled on the multi-dimensional Human Development Indicator (HDI). That will make it possible to take account of all the aspects of the pension system and to compare different countries or systems. The indicator will then be used for a comparative study of Algeria, France, Morocco, Tunisia and Turkey, five Mediterranean countries all frequently described as generous.