Systems of Pension Public and Private

Discipline: EAD5803-9

Concentration area: 12139

Number of Credits: 8

Course load:

(Per week)
(Per week)
(Per week)
In most countries the pension systems have been affected by reforms aimed at balance and sustainability.The provision of an adequate level of income for pensioners and the conflicts with a wide range of economic, demographic and financial challenges, causing risks for countries.

Brazil goes through the challenge of reforming their pensions, which is a goal of tthe current government. In this mission we are faced with drawings of pension systems in developed and emerging countries, in search for appropriate solutions, tested and proven satisfactory for the balance of the system.

The main objective of this course is to develop a critical and current view of social security provision, discussing financial and market aspects, contrasting them with the demands of the public sector and society in general. The reforms are discussed in its economic and political aspects.

The expectations is that students reflect about the concepts covered and, therefore, be required basic readings of course monitoring and carrying out work.

At the end of the course students should know the main types of pension schemes, their strengths and weaknesses, absorb actuarial notions for the calculation of benefits and contributions, understand the political issues facing the reform of the system and understand the macroeconomic aspects of the choices.

It is necessary to promote the knowledge of complementary aspects to the financial markets, such as pension and insurance activities. In a moment that Brazil is undergoing profound demographic changes, knowledge of social security and its operation is of vital importance. It should be noted that the FEA does not have likened discipline.

The following books are recommended and all other readings will be made available by the computer systems of FEA.

G. Clark and A. Munnell. Pensions and Retirement Income. Oxford University Press, 2006.
OECD (2015), “Recent pension reforms”, in Pensions at a Glance 2015: OECD and G20 indicators, OECD Publishing, Paris.

Lessons Contents/ Bibliography

Class 01 Introduction and Presentation Course
Gosta Esping-Andersen, A Welfare State for the 21st Century - Ageing societies, knowledge-based economies, and the sustainability of European welfare states. Report to the Portuguese presidency of the European Union, prepared for the Lisbon Summit, March 2000.

recommended reading
OECD (2015), “Recent pension reforms”, in Pensions at a glance 2015: OECD and G20 indicators, OECD Publishing, Paris, p. 1-43.

G. Esping-Andersen. The Future of the Welfare State in New World Order. New Moon magazine, no. 35, p. 73-95.

Class 02 The spread of social security systems and their rationality
P. Pierson. The New Politics of the Welfare State. World Politics 48.2 (1996) 143-179.

recommended reading
Olga Gryaznova.Factors Affecting Welfare Attitudes In Different Types Of Welfare States: Personal Interests and Values. National Research University Higher School of Economics (HSE). Basic Research Program Working Papers, 2013.

Flora, P. and J. Alber. Modernization, Democratization, and the Development of Welfare States in Western Europe in Flora and Heidenheimer, The Development of Welfare States in Europe and America, 1981 (Book)

Class 03 Public Security and Private: Concepts and Definitions
N. Barr. Pensions: Overview of the Issues. Oxford Review of Economic Policy, vol.22, no. 1, 2006, p.1-14.

recommended reading
P. Tafner. Security and Welfare: Fundamental concepts. Social Security in Brazil: Debates, Dilemmas and Choices, chap. 1, in Paulo Tafner e Paulo Giambiagi, Rio de Janeiro: IPEA, 2007, p. 29-63.

E. James. “New Systems for Old Age Security: Theory, Practice, and Empirical Evidence” (May 1997). World Bank Policy Research Working Paper No. 1766. Available at SSRN: HYPERLINK "http://ssrn.com/abstract=569191" http://ssrn.com/abstract=569191.

C. Mesa-Lago, “Assessing the World Bank Report: Keeping the Promise”. International Social Security Review, Vol. 58, No. 2-3, pp. 97-117, July 2005. Available at SSRN: HYPERLINK "http://ssrn.com/abstract=733708" http://ssrn.com/abstract=733708.

Class 04 Demography and Welfare Impacts Actuarial
Tafner, P. Challenges and Reforms of Brazilian Social Welfare. Magazine USP. São Paulo, n.93, p.137-156, march/ april/ may 2012.

Chan, B. L.; SILVA, F. L.; MARTINS, G. A. Dynamics of under actuarial optical funds. In Foundations of Pension Funds: the actuarial accounting. São Paulo: Atlas, 2010, p. 42-60.

recommended reading
Börsch-Supan, A. (2013). "Myths, scientific evidence and economic policy in an aging world." The Journal of the Economics of Ageing 1-2(0): 3-15.

ECFIN e AWG. 2009 Ageing Report:economic and budgetary projections for the EU-27 Member States (2008-2060).Joint Report prepared by the European Commission (DG ECFIN) and the Economic Policy Committee

David E. Bloom; David Canning; Günther Fink. Implications of population ageing for economic growth. Oxford Review of Economic Policy, Volume 26, Number 4, 2010, pp. 583–612.

other reference sources
P.A. Diamond. Pensions For An Aging Population. MIT, Department of Economics, Working Paper Series, Working Paper 05-33, December 1, 2005.http://ssrn.com/abstract=868540

Pinheiro, R. P. Demography of pension funds. Brasília: Ministry of Social Security. 2007. Social Security Collection, vol. 24.

OECD. Ageing and Pension System Reform - Implications for Financial Markets and Economic Policies. OECD, Publishing 2005, Chapter 1.

Class 05 Benefits and Liabilities Pets
Motta, L.F.J; Rocha, C.B. Actuarial Liability Stochastic Pension Funds: a necessary tool for long-term balance between assets/ investments and liabilities. Congress BULLETS, 2002, March 2002, Tampa, Flórida, EUA.

recommended reading
Chan, B. L.; SILVA, F. L.; MARTINS, G. A. Dynamics of under actuarial optical funds. In Foundations of Pension Funds: the actuarial accounting. São Paulo: Atlas, 2010, p. 60-79 e p. 83-99.

P. Van den Noord and R. Herd. Estimating pension liabilities: a methodological framework. OECD Economic Studies no . 23. Winter 1994

P. Diamond and J. Hausman, “Individual Retirement and Savings Behavior,” Journal of Public Economics, 23(1-2), 1984, pp. 81-114

Class 06 Security, Financial Markets and Economic Growth
Luis Opazo;Claudio Raddatz; Sergio L. Schmukler. Institutional Investors and Long-Term Investment Evidence from Chile. The World Bank. Research Working Paper 6922, June 2014.

recommended reading
Bernhard Ebbinghaus e Tobias Wiß. Taming pension fund capitalism in Europe: collective and state regulation in times of crisis.The European Review of Labour and Research, 17/1: 15-28, 2011

G. Corsetti and K. Schmidt-Hebbel. “Pension Reform and Growth” (June 1995). World Bank Policy Research Working Paper No. 1471. Available at SSRN http://ssrn.com/abstract=604975.

I. Visco. “Paying for pensions: How important is economic growth "http://proquest.umi.com/pqdlink?RQT=318&pmid=36880&TS=1148345396&clientId=18110&VType=PQD&VName=PQD&VInst=PROD" Banca Nazionale del Lavoro Quarterly Review, v. 54, pp. 73-102, Mar 2001.

Class 07 Private Pension and Pension Funds – Governance Issues
Martin Gelter: The Pension System and the Rise of Shareholder Primacy. Seton Hall Law Review, Vol. 43 [2013], Iss. 3, Art. 2, The Berkeley Electronic Press, 2013. Disponível em: http://erepository.law.shu.edu/shlr/vol43/iss3/2.

recommended reading
Stewart, F. and J. Yermo (2008), "Pension Fund Governance: Challenges and Potential Solutions", OECD Working Papers on Insurance and Private Pensions, No. 18, OECD publishing,OECD.doi:10.1787/241402256531

Bernhard Ebbinghaus Tobias Wiß. The Governance and Regulation of Private Pensions in Europe in Ebbinghaus, B. (ed.) (2011): The Varieties of Pension Governance. Pension Privatization in Europe, Oxford: Oxford University Press

other reference sources
Tracie Woidtke. Agents watching agents? Evidence from pension fund ownership and firm value.Journal of Financial Economics 63 (2002) 99–131.

OECD. Private Pensions and the 2008 Turmoil in Financial Markets. Pension Markets In Focus December 2008, Issue 5.

Class 08 Private Pension and Pension Funds – Risks Aspects
Ambachtsheer, K. The Future of Pension Management. Wiley Finance Series. New Jersey. 2016, p. 69-141.

recommended reading
G. Impavido, I. Tower. How the Financial Crisis Affects Pensions and Insurance and Why the Impacts Matter. IMF Working Paper 09/151, July 2009.

A. Turner. Pensions, Risks, and Capital Markets, The Journal Of Risk and Insurance, 2006, Vol. 73, No. 4, 559-574.

Class 09 Reform Experiences in Latin AMerica
Esteban Calvo, John B. Williamson, Old-age pension reform and modernization pathways: Lessons for China from Latin America, Journal of Aging Studies, Volume 22, Issue 1, January 2008, Pages 74-87, ISSN 0890-4065, http://dx.doi.org/10.1016/j.jaging.2007.02.004.

recommended reading
Mesa-Lago, Carmelo. Social Security in Latin America - Assessing the World Bank Report Keeping the Promise. International Social Security Review, Vol. 58, 2-3/2005.

Madrid, Raúl, L. Retiring the State – The Politics of Pension Privatization in Latin America and Beyond. Stanford University Press. Stanford, California, 2003.

Gill, Indermit; Packard, Truman; Pugatch,Todd; Yermo, Juan. Social Security In Latin America -Rethinking social security in Latin America. International Social Security Review, Vol. 58, 2-3/2005.

Van Ginneken, W. “Extending Social Security: Policies for Developing Countries” (2003). Extension of Social Security Paper No. 13. Available at SSRN: HYPERLINK "http://ssrn.com/abstract=673121" http://ssrn.com/abstract=673121

Class 10 Reform Experiences in Brazil
J. Savoia. “Pension Reform in Brazil: Addressing a Social Pact”, in: M. Font and L. Randall. The Brazilian State: Debate and Agenda, Lexington Press, New York, 2011;

recommended reading
Nakahodo, Sidney Nakao and Savoia, José Roberto. The Pension reform in Brazil: a comparative study of Fernando Henrique Cardoso and Lula. Rev. bras. Ci. Soc. [online]. 2008, vol.23, n.66, pp. 45-58. ISSN 0102-6909.

Melo, Marcus André. Institutional Choice and the Diffusion of Policy Paradigms: Brazil and the Second Wave of Pension Reform. International Political Science Review (2004), Vol 25, No. 3, 320–341.

Class 11 Social Security in the United States
Brady, Peter, Kimberly Burham, and Sarah Holden. 2012. The Success of the U.S. Retirement System (December). Washington, DC: Investment Company Institute.

other reference sources
Franco Modigliani; Arun Muralidhar. Editorial - Saving Social Security, Journal of Asset Management; Oct 2003; 4, 3; ABI/INFORM Global pg. 148.

Class 12 Reform Institutional Aspects Parametric and Non-Parametric
R. Holzmann.. Global pension systems and their reform: worldwide drivers, trends, and challenges. Washington D. C.: The World Bank, 2012 (Social Protection & Labor Discussion Paper n. 1213).

recommended reading
M. Dion and A. Roberts. Sources of Support for Pension Reform: A Cross-National Perspective. Center for Retirement Research at Boston College. CRR WP 2008-23, January 2009.

N. Barr. “Reforming Pensions: Myths, Truths, and Policy Choices” (August 2000). IMF Working Paper No. 00/139. Available at SSRN: HYPERLINK http://ssrn.com/abstract=879928.

other reference sources
M. Orenstein. Privatizing Pensions: The Transnational Campaign for Social Security. Princeton University Press. Princeton, NJ., 2008.

Class 13 Part 1: Brazil – General Regime
Tafner, P. Security in Brazil: A (modest) step foward on reforms. September 2011. Available at: http://www.mpas.gov.br/arquivos/office/3_111004-135035-839.pdf

recommended reading
Brazil. Overview of Brazilian Social Welfare – 2. ed. – Brasilia: MPS, SPS,SPC, ACS, 2008.

Brazil. Ministry of Social Security. Prospects and Challenges for Regimes. In. Brazil. Ministry of Social Security. Social Welfare: Reflections and Challenges. Brasilia: MPS, 2009. (Collectiom Social SEcurity Studies Series, v 30, 1. Ed.).

Part 2: Brazil – Civil Servants Regime
J. Savoia. Pension Funds for Civil Servants in Brazil, in Thom Reilly (Ed.) Pensions – Policies, New Reforms and current Challenges. New Publishers, New York, 2014.

other reference sources
Nogueira, N. G. Balance Financial and Actuarial of RPPS: constitutional principle the public policy of the State. Secretary of Social Security Policies. Social Security Collection, Volume 34, 2012. Available at: http://www.mpas.gov.br/arquivos/office/1_120808-172335-916.pdf

Class 14 Presentation of Students´ Papers

Class 15 Exams

Avaliation methods:
Participation in Classes and Abstracts: 10%
Seminar: 20% note (10% each)
Exame Final: 35% of the grade
Artigo: 35% of the grade
Abstracts submitted after th

The course can count on lectures of other subject experts