Asia Pacific

Reports | Articles

Reports

Australia: Pension Review Background Paper (August 2008)
This lenghty report examines the financial situation of Australia's elders and the social security and pension systems which serve them. Around 4.7 million Australians receive pensions or allowances from the government; the government spent $71 billion dollars in 2006-7, 6.8% of GDP. Most pensioners have low private incomes, with over half earning less than $20 a week. The Australian government is currently considering changing its pension system, whose guiding principles are taking care of those unable to work, making proper incentives for those able to work to do so, and making the whole system self-sufficient

India: Understanding Poverty Among the Elderly in India: Implications for Social Pension Policy (April, 2008)
The authors argue that the circumstances of poor elderly in India demands a careful look. First, households with elder relatives do not have higher poverty rates than non-elderly households. However, the poor elders have high mortality rates. This has implications for the Government of India’s new policy to increase social pension funding to the poor older people. It suggests that programs reducing elderly mortality may increase the relative poverty levels of the elderly.

Report: China: Pension Reform in China: Progress and Prospects (2007)
China is developing the largest pension system in the world. The goal is to build a system which adapts to a rapidly aging population in a predominantly underdeveloped, but growing, economy. This paper delivers a description of the historical development of national old age insurance system in China. Subsequently, it provides a detailed examination of the pension arrangements implemented by the end of 2006. It finds that despite progress, the coverage of the system among urban employees remains low while the rural population is outside the national pension system. Finally, the paper reveals the importance of extending insurance coverage by encouraging financial commitments to the National Social Security Fund by 2015 to manage the side effects of the rapidly aging population. The reader should bear in mind that the estimates in the paper might not fully correspond to other Chinese sources

Articles

Japan: Govt May Ease Pension Criteria/Exemptions for Families, Automatic Premium Reductions Proposed (September 28, 2008)
To strengthen the public pension system and to secure minimum living standards for older persons, the Health, Labor and Welfare Ministry in Japan is proposing significant revisions which include: reducing premiums for low-income earners without requiring them to fill out applications; shortening the minimum premium payment period for receipt of pension payouts from its current 25-year level to only 10 years and changing the age range for compulsory participation from 20-60 to 25-65 years of age. 

South Korea: Risky Gamble on National Pension (September 26, 2008)
South Korea’s National Pension Service (NPS) President Park Hae-choon apologized to the public for mismanaging public funds. The fund recorded a return of minus 1% by investing in equities, fixed-income securities and alternative assets both at home and abroad between January and August this year. Despite the apology, the NPA has performed much better than Japan's Government Pension Investment Fund (GPIF) and the California Public Employees Retirement System (CalPERS), which recorded returns of minus 4.1% and 5.2% respectively in the first six months of this year.

India: Regulator Makes Case for ‘Defined Contribution’ Pension Scheme (September 26, 2008)
India is proposing to increase the exposure of a government pension scheme to equity markets. Twenty-one states in India have opted for this plan where pensioners’ money is managed by PSU fund mangers. Currently, only 15% of the fund corpus may be invested in equity markets. Under the new proposal, a pensioner can take 10-50% exposure in equities, 40-100% in government bonds and 25-40% in corporate bonds depending on his/her risk appetite. 

Philippines: Pension Funds Hit For Silence on Lehman Investment Exposure (September 22, 2008) 
The Government Service Insurance System (GSIS), which includes almost half a million teachers and non-teaching staff nationwide, and the Social Security System SSS, the biggest government-operated pension fund for private-sector employees and workers, have both been criticized for not publicizing their exposure to the financial crisis in the United States. The Trade Union Congress of the Philippines (TUCP) slammed the GSIS for its “absolute lack of transparency with respect to its investments overseas.” 

Vietnam: 1.8 million People to Get Higher Pensions, Allowance (September 15, 2008)
As inflation increases, the government in Vietnam is raising pension payments by 15% on October 1. In addition to retirees, state employees who are physically incapacitated and receive allowances will benefit from the increase. The government is also proposing a second increase within twelve months for people who contributed to wars of resistance. An increase of 20% in January 2008 was granted, with plans for a further increase of 15% in October for these people.

Australia: Govt's Claim on Pensions Undermined (September 13, 2008)
The attacks on the Prime Minister of Australia and his government over their refusal to grant an immediate raise of about 10% in pension payments continue. Documents released under the Freedom of Information Act reveal that the federal government's claim that it must wait for a review before raising the age pension has been undermined by the revelation that it considered a detailed submission on the question before the May budget.  "It is now clear Mr Rudd's committee on pensions is just a cynical smokescreen hiding his deliberate refusal to help Australia's pensioners," Fairfax newspapers quoted Opposition Leader Brendan Nelson as saying.

Japan: Japan Faces Pension Crisis as Number of People Over 100 Passes 36,000 (September 12, 2008)
(Article also available in Russian)
Almost 4,000 people in Japan have passed the age of 100 in the last twelve months, which is more than 10% of the total population of centenarians currently living in the United States. Japan, whose population is about one-third the size of the United States, already has more centenarians than all 50 states combined. The figures are a testament to Japan's traditional low-fat diet and high standards of living and medical care, However, Japan's rapidly ageing population is expected to place unprecedented strain on the country's pension system.

China: China May Launch New Social Pension System for Farmers (September 12, 2008)
A new pension system for farmers will be launched by the end of the year, according to a Beijing-based magazine. Details will be submitted to officials within the year and the pilot program launched nationwide. The plan combines personal accounts and the basic government pension. Farmers under the old personal accounts system received pensions lower than the minimum standard, many less than 10 Yuan per month. 

Japan: Pension Revelation Tip of Iceberg / SIA Survey Suggests Falsification of Pension Premium Records Rampant (September 11, 2008)
The falsification of pension records by state officials in Japan is a warning to all workers everywhere to check routinely and verify that their pension contributions are based on their correct current salary or wage. All workers should also ensure that if they are approaching retirement or changing employers they should confirm their pension payments and keep a record themselves before they retire or leave the company. These actions may also avoid problems if the state computer system fails or records are lost (which recently happened in the United Kingdom).

Japan: 'Missing Pensions' Scandal Engulfs Japan's PM Candidates (September 10, 2008) 
Following the abrupt resignation of the prime minister of Japan, five candidates from the ruling Liberal Democratic Party are standing for election. One of the candidates, Minister of Economic and Fiscal Policy Kaoru Yosano, has put pension reform at the top of his manifesto. A key component of the reform is to rename the consumption tax (sales tax) as the "social security tax" so that all the revenues can be ploughed back into covering the nation's ballooning medical, pension and nursing care costs.

Australia: Gillard ‘Couldn’t Survive’ on Aged Pension (September 8, 2008)
The Deputy Prime Minister of Australia, Julia Gillard, and the Treasurer of Australia, Wayne Swan, have both admitted that neither of them could survive on the age pension of A$280 (US$225) per week. Even with an increase later this month, Gillard acknowledged that pensioners face difficulties and cost pressures. "Pensioners, particularly single pensioners, have been doing it tough for a long period of time,” she said. 

India: Rational Expectations (September 8, 2008)
Of the 450 million workers in India, less than 5% have some provision for life after work. Although there is a government pension scheme and government-backed savings plans, they attract less than 15 million workers. The main two reasons for the lack of participation in saving for retirement are the poor marketing of the government’s schemes and legislation that prohibits private pension funds. Conversely, almost 25% of workers in India have made provision for their dependents, with over 105 million life insurance policyholders. 

Australia: Pensioners Take Aim at Rudd (September 6, 2008)
Following last week’s announcement of an increase in pension payments of 2.8%, an individual pensioner managed to secure a one-on-one interview with Australia’s Prime Minister to present a petition asking for an increase of 10% in pension payments. Margot Wall, a pensioner from Tasmania, managed to gain access to Prime Minister Kevin Rudd when he visited Launceston. A 10% increase in pension payments is also the current demand from the Australian Green Party.

Australia: Pensions, Support Payments Rise with CPI (September 2, 2008)
Pensions in Australia, indexed to the consumer price index (CPI), will rise by 2.8% on September 20, at the same time as the scheduled CPI increase. The single pension will rise to A$280 (US$235) per week, but opposition politicians are claiming that the cost of living for pensioners is in excess of the CPI .

Japan: Pension Funding Deadline (September 2, 2008)
Promises of higher funding for national pensions are under threat in Japan. In 2004, the government promised to use additional tax income to cover half of the basic portion of the national pension by 2009. With the realization that an increase in consumption tax will be needed to raise the necessary taxes, the current government is weighing the unpopularity of such a step against their political survival. The result is rumors of a delay in fulfilling the 2004 promises.

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Europe and Central Asia

Reports | Articles

Reports

United Kingdom: Employer Attitudes to Risk Sharing in Pension Schemes: A Qualitative Study (August 2008)
As part of the British governments efforts to make the private pension sector simpler and less burdensome for employers and employees alike, the Department of Work and Pensions is looking at increasing risk sharing in Defined Benefit pension schemes. This study looks at employer perceptions of DB pension schemes with increased risk sharing and finds that they are turned off by the increased complexity of the plans and are unwilling to switch. It also looks at employers with Defined Contribution schemes and finds they too are skeptical of the proposed new plan.

United Kingdom: Information Needs at Retirement: Qualitative Research Focusing on Annuitisation Decisions (2008)
Do ordinary people understand how annuities work? What does a “defined contribution” mean? This report explores policy-holders’ understanding of the choices available to them when they become eligible to convert their pension fund into income. Individual members’ benefits are determined by reference to contributions paid into a pension scheme in respect of that member, usually increased by an amount based on the investment return on those contributions. Consumers need to have high-quality information about their retirement payments and how to make sound choices about annuities. 

United Kingdom: Life Course Events and Later Life Employment (July 2008)
How do early life events affect the decision to remain in the workforce? People often exit the labor market between the ages 50 and 70 years old. Unfortunately, many employees are forced to retire or remain because of their circumstances. Using British Household Panel Survey data, Blekesaune and his partners studied how the family, education, health and pension influence the decision to leave work. Not surprisingly, those who have good health and greater education want to stay in the workforce. 

United Kingdom: The Scottish Widows UK Pension Report (June 2008)
This annual report provides an overview of the UK pension savings. The pension index and savings ratio reveal Britons' attitudes towards retirement savings and the discrepancies based on gender and age groups. Due to the credit crunch, many Britons aren't saving as much as they should. The authors also discuss the challenges Australia faces as it attempts to change its current pension system. Ideas on the table include how to integrate citizens' personal accounts into its current pension legislation. 

Latvia: Life of Pension Recipients according to Statisticians (May 18, 2008)
In Latvia the birthrate increased last year while the rate of pension disbursements decreased. Unfortunately, the Latvian pension is so insignificant that it does not cover pensioners’ daily needs, forcing them to seek paid jobs. One in five persons, aged 62-74 years old, and about one seventh of working pensioners, are self-employed. One in twenty pensioners work but get no salary. They volunteer to help their families, in the home or on farms. 

France: ‘Rendezvous 2008’ with Pensions (April 2008) 
After the presidential campaign Nicolas Sarkozy committed himself to balance the national pension fund in France, while maintaining the households’ purchasing power. The government will soon take measures to meet this ‘rendezvous 2008’ with pensions. Representatives predict an approach in four directions: to encourage workers to stay longer in the workforce, to mobilize for greater employment of older persons, to increase purchasing power of citizens and to plan for next steps in the post- 2020 period.

United Kingdom:  Life Expectancy Gap at State Pension Age Set to Narrow (January 2008)
This report focuses on life expectancy at the State Pension Age, showing that life expectancy between men and women is narrowing and may stabilize between 2021 and 2051. The study takes into consideration that the State Pension Age may go up to 68 years old by 2046. It also explains that life expectancy depends on individuals’ social backgrounds as men and women in the so-called ‘professional’ class live longer. Workers in other job categories face greater health risks and less income and die earlier. 

Articles

Russia: Russian Pensioners Live Beyond the Poverty Line (September 30, 2008)
(Article in Russian)
The number of pensioners in Russia has increased dramatically since 2000. However, the increase did not have any effect on their economic welfare. Many old people live below the poverty line, receiving on average about $200 per month. The gap in living age between women and men continues to increase as well. Now women live 13 years longer than men. Because of this, out of the 29 million seniors currently living in Russia, around 7 million live alone. 

Russia: Half of Russians are Unfamiliar with a New Pension Law (September 30, 2008)
(Article in Russian)
Starting October 1, a new law about co-financing pension savings takes effect in Russia. According to the law, those pensioners who enrolled in the program will have the government co-finance their retirement savings for a period of 10 years. However, the results of a national survey showed that only 13% of Russians are “well informed” about the new law. 

Greece: Rallies on Social Security System (September 29, 2008) 
Trade Unions in Greece reacted strongly to the news that 133 separate pension funds will be merged to a total of just 13. Employment Minister Fani Palli-Petralia stressed that significant savings would be made and that policyholders would benefit by the merger. However, trade unions decided to stage a series of rallies against the move by Ms. Petralia. The General Confederation of Greek Workers President Giannis Panagopoulos stated, “We will not stop fighting for the Social Security System."

United Kingdom: Call to Reform Pension Credit (September 25, 2008)
Research carried out for Age Concern showed that more than half of older people in the United Kingdom were cutting back on essentials such as heating and food in a bid to make ends meet. In the meantime, pensioner groups have found that nearly one-third of people who were eligible for the UK Pension Credit were not receiving it, with up to £2.8 billion going unclaimed. Age Concern said that if the benefit had been paid automatically, those missing out would be, on average, £1,477 ($2,500) a year better off.

Norway: More Bad News for Norway's Huge Pension Fund (September 24, 2008)
Just last year, Norway’s oil fund was being praised for its strategic and ethical investment moves. The fund, a sovereign wealth fund fueled by revenues from Norway's offshore oil reserves, is meant to finance pensions for future generations. Instead of spending the oil money, Norway has set aside most of the revenues to secure the future of the nation’s inhabitants. Unfortunately, the fund's stake in Lehman Brothers rose from 1.7 million shares to 17.5 million shares during the second quarter of this year, which is raising doubts about the management of the fund.

France: Pensions – What You Should Save (September 24, 2008)
(Article in French)
Pensions are on a steady decrease. Inflation will add to the difficulties of the generation of baby boomers. The pension plans offered by companies may also provide negligible benefits. The article recommends purchasing real estate and early pension contributions. Effective financial management, in this case, requires another solution: how to choose the best interest rates to compensate for inflation. 

United Kingdom: Lehman Brothers Reveal £100m Pensions Hole (September 23, 2008)
Lehman Brothers in Britain collapsed with a mammoth £100 million black hole in its staff pension fund. The deficit means that many former staff in Britain may not have their retirement promises met in full. The size of the shortfall surprised experts. John Ralfe, a pensions consultant, said: “One way or another, the members of Lehman’s UK pension scheme will lose out.”

France: Funding Pensions: How About a Referendum? (September 22, 2008)
(Article in French)
Very few French companies have implemented a vision or a long-term project concerning the employment of older workers. Most of the time, the latter are subject to the ups and downs of the economic situation. According to the journalist, this is a drawback for the whole of the active population: the income of those in employment and of those who have retired decrease alike. The solution would consist of organizing a referendum to expose these issues—that have a social as well as an economic dimension--to the public eye.

Finland: Finland Keeps its Retirees Active (22 September 2008)
(Article in French)
For 10 years, Finland has been trying to keep senior citizens in employment. Facing both the rapid aging of its population and a scarcity in human resources, some initiatives were necessary. Among these: the improvement of the quality of the work environment as well as that of the working conditions are a priority. Despite these multiple initiatives, success is far from complete: the country still has not managed to get unemployed older people back in employment.

United Kingdom: Teresa Hunter Tells Investors How To Salvage Their Battered Retirement Plans (September 21, 2008)
Although many consumers are withdrawing cash from their pensions, this may not be the best way to preserve their pension assets over the long term. Stock market volatility hits different kinds of savers in different ways depending on whether they have a final salary scheme, money purchase arrangements or personal pension savings. It is vital for future retirees to understand fully their pension scheme and to plan, save and even consider working a year or two longer.

United Kingdom: Union Anger over Two Per Cent Pensions Cap (September 20, 2008)
Due to the concerns about their ability to fund the company’s pension plan, Legal and General, a UK company, placed a 2% cap on future pay raises for the purposes of pension calculations. That means that if staff gets a 4% wage increase, only half of that will boost their pension. Deputy general secretary Graham Goddard says the union is considering a legal challenge and possible industrial action.

Netherlands: Credit Crisis Set to Hit Pensions (September 19, 2008)
Hundreds of thousands of pensioners in the Netherlands will feel the effects of the worldwide credit crisis next year as pension funds decide not to increase payouts in line with inflation. Falling share prices mean many funds may not have enough cash to increase payouts, the report says. Pension funds have increasingly moved their investments into shares in recent years. Trade Unions will be pressured to agree to wage moderation in order to keep inflation under control.

Ireland: Hanafin Warns Social Groups Economy Will Hit Budget (September 19, 2008)
The Minister for Social and Family Affairs, Mary Hanafin, has warned that economic conditions will have an impact on proposals from social advocacy groups. One of these groups, Age Action, has called on the Government to protect the most vulnerable of pensioners from the effects of rising food and fuel prices when formulating the Budget. "For pensioners struggling to survive on fixed incomes, and especially those living alone on low incomes, a 55 per cent rise in the price of home heating oil or 27 per cent in the price of milk pose a major challenge," said Age Action's head of advocacy and communications, Eamon Timmins.

France: Getting Active After Retirement (September 17, 2008) 
(Article in French)
The French government plans to change the laws regulating employment of retirees. Under the new regulations, retirees will be allowed to work as soon as they reach 65 or once they have contributed long enough to be entitled to a full pension. The 6 months notice that was necessary to take a job with the same employer will also be abolished. This heralds a complete liberalization of employment in retirement. The new regulations will come into force on January 1, 2009.

Romania: Romania PM Says Approves Pension Hike from October (September 16, 2008)
Due to good national economic performance, the Prime Minister of Romania, Calin Tariceanu, has increased state pensions one month earlier than expected. Romania decided to double pensions via two hikes in 2008 and 2009, and recently announced plans to speed up the implementation of the increases, starting some from November 2008 rather than January 2009. Average monthly pensions in Romania are just over 100 euros ($130), which even after doubling will still be well below pension levels in developed countries.

Netherlands: The Right To a Comfortable Retirement (September 12, 2008)
A 74-year-old widow from New York and a 55-year-old retired teacher from Kenya are both struggling to survive on the income from their respective pensions. After her husband died, the loss of his social security income required Lestra Vertucci of New York to return to work in order to maintain her modest lifestyle. In the case of Bilha Ndoko Azenga, of Kenya, her €70 (100 US $) per month pension is insufficient to support herself and her family. To make matters worse, Kenyan rules prevent teachers from working beyond the age of 55.

United Kingdom: IOPS Recognises the Importance of DC Pensions Internationally (September 11, 2008)
The International Organisation of Pension Supervisors (IOPS) has recognized the increasing importance of DC (defined contribution) pensions in a new series of working papers. The papers have been drafted by a number of members - including pension regulators from Italy, Chile and Hong Kong as well as the UK. The papers recognize that, for private pensions, there is a worldwide trend towards DC pensions and away from final salary pensions. However, the information and decision-making process required for DC pensions is significantly more complex.

Hungary: Half-Million Hungarians May Be Shut Out of Pension System, Paper Says (September 10, 2008)
While the current pension system totally covers the retired segment, around half a million Hungarians face being squeezed out of the pension system by 2030 because they will not have fulfilled the minimum working period for entitlement. At the same time, the ratio of pensioners to workers is expected to rise. Today there are four employed persons for one pensioner. The ratio is estimated to be two to one by 2050. The rising poverty of pensioners poses a serious threat to the whole of Hungarian society.

United Kingdom: Fighting for Decent Pensions (September 10, 2008)
The National Shop Stewards Network conference held a pension workshop that emphasized the need for trade union members and their leaders to resist continuous attempts to erode their pensions. The leaders of the workshop advocated militant union action as the best way to improve and retain pensions. Examples of unions who had successfully defended their pension rights were contrasted with those unions who had failed in this regard.

Russia: Moscow Government To Raise Pensions up to Two Minimum Wages in 2009 (September 9, 2008)
(Article in Russian)
By the end of 2009, the minimum pension in Moscow will be equal to two times the minimum wage, says the capital's government. In August 2007, the pension was raised by 15%. Next year the government plans to add another RUB 1,000 to minimum pensions. «This year Moscow pensions have already reached 1.5 of the minimum wage and we are not going to cut it,» said a government representative.

Finland: 10,000 Finns Will Reach Retirement Age in September (September 9, 2008)
A record number of Finns will become eligible for the Finnish state retirement pension this month. Like many European countries, Finland is at the start of the period when the number of retired persons in proportion to the working-age population will start to accelerate. The peak year for people becoming eligible foe the state pension will be 2011, when 84,000 Finns will reach the age of 63. The year before that, 63-year-olds and above will outnumber under-18’s – a sure sign of an aging country.

France: Space in Rennes: Fillon wants Pension Rise for Farmers (September 9, 2008)
(Article in French)
The Prime Minister inaugurated this morning the 22nd edition of Space, the Breeders’ Salon held in Rennes. There, he announced the creation of a minimum pension for all farmers who have contributed at least 17 years and a half, instead of the previous 22 and a half. Farmers’ widows will also be entitled to their husbands’ pensions. Around 350,000 farmers are expected to benefit from these measures that will come into effect between 2009 and 2011.

United Kingdom: Public Sector Staff ‘Should Lose Final Salary Pensions’ (September 5, 2008)
A recent survey in the UK re-emphasizes the growing disparity between the pension benefits of public sector and private sector workers. As 80% of private sector ‘final salary’ pension schemes are now closed, public sector workers are anticipating pensions that are more than double their private sector counterparts. The report suggests, that in the future, public sector workers pensions should be reduced to bring them closer to private sector pensions. It remains to be seen whether any government has the will to implement such a proposal. 

Romania: CNPAS and Citi Romania to Pay Romanians Pensions Abroad (September 5, 2008)
One of the conditions of Romania’s accession to the European Union on January 1, 2007 was an agreement to pay pensions to Romanian citizens who were living outside the country and were entitled to the benefits. Prior to joining the EU, Romania did not pay pension benefits to anyone living outside the country. Citibank Romania won the contract to set up the system that began trials in July. About 29,000 pensioners are expected to benefit from this change.

Netherlands: Anger at Plans for Extra Tax on Pensions (September 5, 2008)
The article reports on the reaction of pensioners associations to the announcement made by the Christian Democrat party. Christian Democrat party plans, which were leaked last week, will make those over 65 pay extra tax on pensions that they have saved up themselves above €18,000. The article also suggests that future plans could see the retirement age rise from 65 to 67.

France: Despite the Hand Given by the Government in 2008, Retirees Lose Purchasing Power (September 1, 2008)
(Article in French)
The government has enforced a 0.8% increase in pensions on September 1, 2008 to compensate for growing rates of inflation. However, this increase cannot prevent retirees’ purchasing power from eroding before the 2009 pension increase. Pensions will be raised again, but on April 1 instead of January 1, so that the government can align them with private pension plans. This does not affect the standard of living of retirees, which is said to be ‘comparable’ to that of working people. Asset revenue, higher rents and real estate prices–75% people aged 65 and above are property owners and the smaller size of retiree’s households are among the factors accounting for this erosion. Also, the cost of living in residential care homes is extremely high.

Poland: A Wave of Protestation against Pension Reform (August 30, 2008)
(Article in French)
On August 29, 2008, several thousands of people calmly assembled in Warsaw to demonstrate against pension reform. The participants who were gathered by Solidarity, the National Trade Union, demanded that the current pension system be upheld. Under the current system, certain categories of professionals may retire five years before the legal age: 55 for women, 60 for men. Over a million early retirements would be suppressed by the reform, which adds to disenchantment of pensioners caused by the decrease in retirement wages since the system was partly privatized in 1999.

United Kingdom: Carers UK Response to Work and Pensions Select Committee Report ‘Valuing and Supporting Carers’ (August 29, 2008)
The UK Government’s Department of Work and Pensions (DWP) has the responsibility for the benefits paid to caregivers, most of whom assist elder people with daily living tasks. A committee of UK M.P.’s, appointed by the DWP, has recommended that significant improvements in benefits be awarded to care providers. This recommendation has been welcomed by “CarersUK,” an organization that campaigns for better recognition of the contribution care givers make to the welfare of older people and society as a whole. 

United Kingdom: Call for Pension Design Freedom (August 28, 2008)
The Association of Consulting Actuaries (ACA) and Watson Wyatt have called on the British Government to take action over risk sharing pension schemes. ACA wants separate legislative framework for new types of pension plans, such as ‘conditionally indexed’ defined benefit plans, where targeted pension increases are conditional on the funding level. Actuaries were prompted by accelerated closing of the existing defined benefit schemes. 

Ireland: Universities Set to Improve Pensions (August 27, 2008)
Dominic Coyle reports that the Irish government intends to take the assets of a large number of independently funded semi-state pension schemes into the exchequer. Irish universities may use this opportunity to improve the pension position of some staff. Any potential bill is still to be finalized before going to the cabinet.

United Kingdom: Millions Missing Out on Pension Benefits, Pensioner Groups Warn (August 27, 2008)
The United Kingdom government and pension groups have announced that millions of pensioners are missing out on cash benefits. Pensioners may believe that they are not entitled to cash benefits due to owning a house or having savings. Help the Aged, a UK older persons’ group, has estimated that around 5 billion pounds worth of benefits remain unclaimed each year. The government said that pensioners had up until October 6, 2008 to claim backdated payments for that year.

Russia: Budget with a Pension Flavor (August 25, 2008)
(Article in Russian)
Russian ministries approved a draft budget for the next three years. According to the draft, in 2009-201l pension expenses will be increased the most. Chief of the Ministry of Finance called the national 2009-2011 budget “a budget of economics diversification and creating economics of an innovative type.”

Latvia: Pension Referendum Will Help to Raise Society’s Awareness about Problems of the Elderly (August 19, 2008)
(Article in Russian)
Latvia plans to have a referendum on pension law amendments which may help to raise the minimum pension level. “The referendum is needed: it is one of the most democratic ways of raising our society’s awareness about the problems the elderly face,” says Solvia Aboltinia, chief of the “New Times” Party.

Russia: Pension Age will be Raised for the Older, Taxes – for the Young (August 18, 2008)
(Article in Russian)
Raising the pension age in Russia is unavoidable, says the Ministry of Finance in Russia, and suggests raising men’s pension age to 62.5 and women’s to 60 years starting in 2015. To finance the reform, an extra 3% in taxes will be deducted from people’s salaries. The government will have to approve this proposed policy. 

France: Buying Study Years Will Soon be a Possibility for People over 60 Years Old (August 13, 2008)
(Article in French)
The French Ministry of Labor announced in mid-August that it would increase from 60 to 65 years the age limit by which people can buy back their study years in order to increase their pension. This decision comes in response to a lawsuit by a 60-year-old man who could not buy back his study years and felt discriminated against. 

Russia: For the Benefit of the Rich (August 11, 2008)
(Article in Russian)
The writer of this article explains the work of the Ministry of Health and Social Development to “reform” the Russian pension system. The Ministry has cancelled the Unified Social Tax and increased the pensions for those who retired during the Soviet period. The amount of pensions for today's young will depend on their years of employment, insurance expenses and their personal savings. What are the advantages and disadvantages of the reform? The article gives a comprehensive overview of future changes.

Russia: No Elderly without Pensions (August 11, 2008)
(Article in Russian)
Russia has organized medical help for the victims of the armed conflict in South Osettia and care for Russian pensioners living in the area, says the Ministry of Health and Social Development. Russia is giving medical and food supplies. In addition, the Pension Fund has increased the control over the pension payments to the Russian pensioners living in South Osettia. 

Russia: A Retired Life (August 6, 2008)
Russia's pensions are no longer regulated by the state budget. Moreover, there is a dramatic upsurge in the amount of state pensions being transferred into private companies in 2008. Nevertheless, the pensions remain “intolerably low” and the old way of solving the problem by “just begging for more money from the state budget wouldn’t work now,” says President Medvedev. So, will future generations of Russians continue to see retirement as a dramatic decline in their living standards?

Belarus: Labor Pensions Increase in Belarus (August 6, 2008)
(Article in Russian)
Global Action on Aging continues to follow changes in the level of pensions that older persons receive in countries of the world. This time, we note that labor pensions in Belarus are set to increase by 11.2% on average in August. The President of Belarus signed the relevant decree on August 4.

Europe: Europe Tries to Handle Political Fall Out of Pension Cuts (August 6, 2008)
Faced with larger pension expenditures, European governments are trying to implement cost cutting measures. However, many workers and pensioners find their current pension insufficient and oppose the reforms. In Belgium alone, it is estimated that 40% of retirees live in poverty. The clash between pensioners and the government over this issue has resulted to massive demonstrations and strikes. Is there a human right for income security in old age? At what level? Are the richest in the countries paying their “fair share?” Will inter-generational strife break out? Many Europeans are dealing with these issues now.

United Kingdom: 100 Years After Reform, Poverty in Old Age is Rife (July 31, 2008)
A hundred years have elapsed since David Lloyd George and his colleagues instituted pension payments, believing that they would end poverty in old age. Today, a century later, one-fifth of people over the age of 65 in the UK still struggle to make ends meet. Rising energy and food prices have been blamed. Rita Young, 73, lives outside Peterborough and considers a bar of chocolate a luxury. “Things are better than a hundred years ago…But it is a disgrace that we have got to go and beg for the pension credit to bring us up to a level still below the poverty line,” she said. 

Estonia: Will Estonia Raise Pension Age? (July 14, 2008)
(Article in Russian)

The population in Estonia is aging fast. There are only 1.7 persons of working age per pensioner in the country. Is Estonia ready to increase the age when a person can qualify for a pension? Economists fear this may not solve the problem of labor shortages. The Estonian government is also planning on changing its pension system.

Russia: Will Women Retire at 60 in Russia? (July 3, 2008)
(Article in Russian)
According to a report prepared by the World Bank’s chief economist, Russia's population will decrease by 10% by 2025. Demographic projections suggest that by 2025 the average Slovene will be 47 years old, giving the country one of the oldest populations in the world. One of the World Bank's suggestions for dealing with the issue is to increase women's pension age from 55 to 60 and equalize it with that of men. Is Russia ready for such a change?

Russia: Pensions in Russia Increased by 31% in a Year (July 3, 2008)
(Article in Russian)
Russia's pensions increased by 31% in a year, says the Federal Agency of Federal Statistics. By May 2008 pensions reached the level of RUB 4,004 constituting 23.7% of the country's minimum wage. According to the government's plan, pensions will almost double by the year 2011. 

Moldova: Pensions in Moldova and Pensions in Europe (June 24, 2008)
(Article in Russian)
Could you survive on a pension in Moldova? The author provides bitter facts, comparing pension levels in Moldova with those in Germany, Great Britain, Sweden and some other European states. Pensioners in Moldova get around $68 per month and a yearly pension indexation does not seem to make any difference due to high rates of price increases. 

France: Miners Pension Fund Sells its Building (June 11, 2008)
(Article in French)
The Miners Pension Fund has faced a large deficit since the 90’s when many mines closed, leaving about 200,000 retired miners and their beneficiaries (especially miners’ widows). Fund managers invested in real estate after World War II. In December 2006, they said they were going to sell their buildings to make up the deficit. This article focuses on the conditions of the sale. 

France: Seniors: Accumulated Money to Postpone Retirement Age (June 4, 2008)
(Article in French)
The employment rate of seniors over 55 years old is very low in France. To correct this situation, Laurent Wauquiez, French Labor Secretary, presented the new government’s plan. Three steps should be taken : first, economic sanctions for employers who do not employ seniors ; then, liberalizing the rules allowing seniors to accumulate pension money; and, finally, increasing the rate of senior pensions, meaning that the longer you work, the higher pension rate you have when you retire. 

Czech Republic: Government Ups Pensions by 470 Crowns a Month (June 3, 2008)
The Czech Republic government has increased all types of pensions by 5.1 percent. The pension will reach 9616 crowns in August 2008. The increase was possible under a new law enabling pension indexation if the inflation rate exceeds 5 percent. The opposition claims the increase is not sufficient and proposes a subsidy of 6,000 crowns to each pensioner. 

France: The Retirement System: Society’s Choice (May 30, 2008)
(Article in French)
France has a repartition pension system, which means that the younger generations pay for the older generations’ pensions. It is a social contract, a choice of society. But, since the 80’s, many in the French government want to pursue a neo-liberal approach, claiming that the social contract will ruin France. To the contrary, according to the authors, solutions exist to make the social contract carry on effectively. 

France: French Pension Strike Sparks Numbers Battle (May 22, 2008)
French people are demonstrating throughout the country, especially in Paris and Marseille, to protest the government pension reform. The government wants French workers to work longer and contribute more to their pension plans. However, older workers have a very hard time finding a job or keeping their jobs in companies after they reach 55 years old. Shouldn’t the government first encourage senior workers before taking such measures? And clear away the roadblocks of age discrimination?

Russia: Real Incomes of War Veterans, Pensioners Must Be Raised – Putin (May 26, 2008)
Russia's Prime Minister Putin emphasized the need to raise incomes of WW II war veterans and pensioners and improve the quality of home care and conditions of medical treatment for veterans and disabled people. In addition, the government promised to increase pensions by 15 percent and implement a number of projects to provide veterans with apartments, cars and one-time cash compensation this year.