Generational Accounting and Hungarian Pension Reform

The essence of generational accounting is to break down total net contributions in a given year to each cohort and to project this profile into the future. Using additional assumptions on the discount rate and the growth of productivity and populat...

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Bibliographic Details
Main Authors:	Gál, Róbert I., Simonovits, András, Tarcali, Géza
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ACCOUNTING ACCOUNTINGS ACCRUAL RATE ACCRUAL RATES ANNUAL RETURNS ANNUITIES BENEFICIARIES BENEFIT FORMULA BENEFIT PAYMENT BEQUESTS BUDGET CONSTRAINT BUDGET DEFICIT COMPENSATION CONTRIBUTION RATE DEBT BURDEN DEFICIT FINANCING DEFICITS DEFINED BENEFIT DEFINED BENEFIT PLAN DEMOGRAPHIC DISABILITY DISABILITY PENSIONS DISBURSEMENTS DISCOUNT RATE DISCOUNT RATES ELDERLY FEMALE FERTILITY FINANCIAL CRISIS FISCAL BALANCE FISCAL POLICY FULL EMPLOYMENT FUNDED SCHEME GENERATIONAL ACCOUNT GENERATIONAL ACCOUNTING GENERATIONAL ACCOUNTINGS GENERATIONAL ACCOUNTS GOVERNMENT BONDS GOVERNMENT BUDGET GOVERNMENT DEBT GOVERNMENT EXPENDITURES GOVERNMENT GUARANTEE GOVERNMENT SUBSIDIES GROSS WAGE GROSS WAGES GROWTH RATE HEALTH CARE HUMAN DEVELOPMENT HUMAN RESOURCES IMPLICIT DEBT IMPLICIT PENSION DEBT INCOME GROWTH INCOME TAX INCOMES INDEBTEDNESS INDIVIDUAL ACCOUNTS INFLATION INSURANCE INTEREST RATES INTERGENERATIONAL TRANSFERS INTERNATIONAL DEVELOPMENT LABOR INCOME LABOR MARKET LEGISLATION LIFE EXPECTANCY LIFE INSURANCE LONG-TERM GOVERNMENT SECURITIES LONGEVITY RISKS MANDATORY RETIREMENT MATERNITY LEAVE MATURITY NATIONAL PENSION NET WAGES OLD -AGE PENSIONS OLD-AGE PENSION OUTPUT PARTIAL INDEXATION PAYROLL TAXES PENSION PENSION ACCOUNT PENSION ACCOUNTS PENSION ADMINISTRATION PENSION BASE PENSION BENEFITS PENSION CONTRIBUTION PENSION CONTRIBUTIONS PENSION FORMULA PENSION FUND PENSION FUND MEMBERS PENSION FUNDS PENSION INSURANCE PENSION LAW PENSION REFORM PENSION SYSTEM PENSION SYSTEMS PENSIONER PENSIONERS PENSIONS PERSONAL INCOME POLITICAL RISK POLITICAL RISKS PRIVATE MANAGEMENT PRIVATE PENSION PRIVATE PENSION FUNDS PRIVATE PENSIONS PRIVATE PILLAR PRIVATE SAVINGS PRIVATIZATION PUBLIC FINANCE PUBLIC FINANCES PUBLIC GOOD PUBLIC GOODS PUBLIC INVESTMENTS PUBLIC PENSION PUBLIC PILLAR PUBLIC SYSTEM RATE OF RETURN RATES OF RETURN REAL INTEREST REAL INTEREST RATE REAL TERMS REPLACEMENT RATE REPLACEMENT RATES RESERVE RETIREMENT AGE RETIREMENT PHASE RETIREMENT SYSTEM RETIREMENTS RETURN RETURNS RISK AVERSION SEXES SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SECURITY CONTRIBUTIONS SOCIAL SECURITY SYSTEM SOCIAL SECURITY SYSTEMS SOCIAL WELFARE STOCK EXCHANGE SUSTAINABLE GROWTH TAX TAX RATE WILL
Online Access:	http://documents.worldbank.org/curated/en/2001/10/20170673/generational-accounting-hungarian-pension-reform http://hdl.handle.net/10986/20233

Description
Summary:	The essence of generational accounting is to break down total net contributions in a given year to each cohort and to project this profile into the future. Using additional assumptions on the discount rate and the growth of productivity and population, the per capita net contribution of future generations can be determined, which satisfies the inter-temporal budget constraint. Generational accounts in the Hungarian pension system show that the 1997 reform package significantly reduced the financial tension generated by demographic and institutional factors.

Generational Accounting and Hungarian Pension Reform

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