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Accrued Pension Rights in Belgium: Micro-Simulation of Reforms

Author

Listed:
  • Alain Jousten

    (Université de Liège Center of Research in Public Economics and Population Economics (CREPP) and Tax Institute Institute for the Study of Labor (IZA) Network for Studies on Pensions, Aging and Retirement (Netspar))

  • Sergio Perelman

    (Université de Liège Center of Research in Public Economics and Population Economics (CREPP))

  • Fabio Sigismondi

    (Université de Liège Center of Research in Public Economics and Population Economics (CREPP))

  • Ekaterina Tarantchenko

    (Université de Liège Center of Research in Public Economics and Population Economics (CREPP))

Abstract

We simulate different reform scenarios of the Belgian pension system using a micro-simulation approach. Using a rich administrative dataset with extensive information on individual earnings histories, we evaluate the impact of the scenarios for the individuals as well as the system as a whole. Our main metric for these analysis is the notion of accrued to date pension rights, i.e. the pensions rights that would be due if the system were shut down today and all accrued rights under current legislation were honoured. Our analysis illustrates that partial reforms have limited effects, both in distributional and in fiscal terms. To achieve more substantial effects, a more comprehensive approach is needed. Regional differences within the country are mostly due to differences in regional GDP rather than the pension system itself.

Suggested Citation

  • Alain Jousten & Sergio Perelman & Fabio Sigismondi & Ekaterina Tarantchenko, 2012. "Accrued Pension Rights in Belgium: Micro-Simulation of Reforms," International Journal of Microsimulation, International Microsimulation Association, vol. 5(2), pages 22-39.
    • Handle: RePEc:ijm:journl:v:5:y:2012:i:i2:p:22-39
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    References listed on IDEAS

    as
    1. Sergio Perelman, 1981. "Evaluation patrimoniale des droits à la pension en Belgique," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 89, pages 25-52.
    2. D. Dury & B. Eugène & G. Langenus & K. Van Cauter & L. Van Meensel, 2008. "Interregional transfers and solidarity mechanisms via the government budget," Economic Review, National Bank of Belgium, issue iii, pages 93-112, September.
    3. Robert Holzmann & Robert Palacios & Asta Zviniene, 2001. "On the Economics and Scope of Implicit Pension Debt: An International Perspective," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 28(1), pages 97-129, March.
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    Cited by:

    1. Anne-Lore Fraikin & Alain Jousten & Mathieu Lefebvre, 2023. "Trends in Social Security Incentives in Belgium," NBER Chapters, in: Social Security Programs and Retirement around the World: The Effects of Reforms on Retirement Behavior, National Bureau of Economic Research, Inc.
    2. Yves Brys, 2017. "Working Paper 06-17 - Accrued-to-date pension entitlements in Belgium," Working Papers 1706, Federal Planning Bureau, Belgium.

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