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Social Security Generosity, Budgetary Deficits and Reforms in North Cyprus

Author

Listed:
  • Hasan U. Altiok

    (Eastern Mediterranean University, Cyprus)

  • Glenn Jenkins

    (Queen's University, Canada and Eastern Mediterranean University, Cyprus)

Abstract

This paper estimates the fiscal burden of the Pay-As-You-Go (PAYGO) Social Insurance Pension System that was closed in 2008 to new members, and analyzes the appropriateness of the 2008 reforms that introduced the new Social Security Pension System in the TRNC. To calculate the overall deficit, estimates are made from the difference between the present values of future contributions and the pension benefits. The magnitude of the unfunded cost makes any marginal policy reform ineffective in eliminating the excessive fiscal burden on the current and future taxpayers for the next three decades. Major structural reforms will be required.

Suggested Citation

  • Hasan U. Altiok & Glenn Jenkins, 2012. "Social Security Generosity, Budgetary Deficits and Reforms in North Cyprus," Development Discussion Papers 2012-01, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:214
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    References listed on IDEAS

    as
    1. Grech, Aaron George, 2010. "Assessing the sustainability of pension reforms in Europe," MPRA Paper 27407, University Library of Munich, Germany.
    2. Queisser, Monika & Whitehouse, Edward, 2005. "Pensions at a glance: public policies across OECD countries," MPRA Paper 10907, University Library of Munich, Germany.
    3. Palacios, Robert, 2006. "Civil-service pension schemes around the world," MPRA Paper 14796, University Library of Munich, Germany.
    4. José Enrique Devesa‐Carpio & Mar Devesa‐Carpio, 2010. "The cost and actuarial imbalance of pay‐as‐you‐go systems: the case of Spain," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 13(3), pages 259-276.
    5. Jeffrey R. Brown & Robert L. Clark, 2011. "The Economics of State and Local Pensions," NBER Books, National Bureau of Economic Research, Inc, number brow11-1, July.
    6. Jose Enrique Devesa-Carpio & Mar Devesa-Carpio, 2010. "The cost and actuarial imbalance of pay-as-you-go systems: the case of Spain," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 13(3), pages 259-276.
    7. Mustafa Besim & Glenn Jenkins, 2005. "Tax compliance: when do employees behave like the self-employed?," Applied Economics, Taylor & Francis Journals, vol. 37(10), pages 1201-1208.
    8. Monika Queisser & Edward Whitehouse, 2006. "Neutral or Fair?: Actuarial Concepts and Pension-System Design," OECD Social, Employment and Migration Working Papers 40, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. EL-HOUJJAJI, Hind & ECHAOUI, Abdellah, 2020. "Assessing the financial sustainability of parametric pension system reforms: The case of Morocco," MPRA Paper 98912, University Library of Munich, Germany.
    2. Amin Sokhanvar & Glenn P. Jenkins & Hasan Ulas Altiok, 2019. "The Political Economy of the Taxation of Individuals in North Cyprus," Development Discussion Papers 2019-01, JDI Executive Programs.
    3. Hasan U. Altiok & Glenn Jenkins, "undated". "The Pension Traps of Northern Cyprus," Development Discussion Papers 2012-03, JDI Executive Programs.
    4. Hasan U. Altiok & Glenn Jenkins, 2012. "Social Security Reforms in Northern Cyprus: Are they Fiscally Balanced and Socially Equitable?," Development Discussion Papers 2012-02, JDI Executive Programs.

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    More about this item

    Keywords

    pay-as-you-go; social insurance; social security; pension liabilities; implicit pension debt; pension indexing;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • H68 - Public Economics - - National Budget, Deficit, and Debt - - - Forecasts of Budgets, Deficits, and Debt

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