Taxes on pension income : OECD

Cela fait très longtemps que je vous dis que la seule solution pour résoudre les fonds de pension à régimes prestations déterminées du secteur public.

1.      Est de convertir les régimes de prestations déterminées à cotisations déterminées, donc le peuple n’est plus responsable du rendement, donc des déficits cumulés.

2.      De taxer les retraites dorées pour compenser les déficits cumulés.

Mais nous sommes au Québec, on va juste faire du bruit pour faire du bruit pour ne pas traumatiser certains groupes d’intérêts.

Donc, entre-temps :

·         On arnaque le secteur privé pour subvenir à leurs propres fonds de pension et payer ceux des fonctionnaires.

·         On arnaque les jeunes en utilisant leurs crédits pour emprunter sur le marché pour payer leurs retraites et compenser les déficits cumulés (42 milliards pour le FARR). De plus, cela fait plus de 30 ans qu’on ne paie plus le capital, la dette et les intérêts restent pour un temps indéfini sur le dos des futures générations.

·         On arnaque tous les jeunes fonctionnaires (45 ans et -), car si l’on a plus de 100 milliards de déficits actuariels pour satisfaire les promesses, on va-t-on trouver l’argent ? Quand nous ne sommes même plus capables d’équilibrer nos budgets.

Bien sûr, tous ceux qui reçoivent des retraites dorées que nous le peuple n’a jamais approuvé se la coule douce, jusqu’au moment où le paquebot frappe l’iceberg tout en se gargarisant en disant qu’ils ne l’ont pas volé.

Belle fumisterie !

Voici certains extraits d’un rapport de l’OCDE sur les risques des régimes de retraite, juste la photo du document démontre à quel point que c’est une vraie utopie.


Editorial

Demographic change and economic stagnation put pressure on pension systems

Poules aux oeufs d'or

Source: OECD Pensions Outlook 2014

Pension systems are facing crucial and far-reaching challenges. The economic crisis led to a reduction in governments' revenues to finance retirement promises and to a loss of public confidence in private pensions in many countries. At the same time, pension systems also have to deal with the problems posed by population ageing and the current economic environment.

Pensions are under pressure from the retiring of the baby boom generations, the improvements in mortality and life expectancy, and the longevity risk coming jrom the uncertainty around future improvements in life expectancy. Population ageing is leading not only to an increase in the number of people in retirement relative to the size of the working age population, but also most importantly to an increase in the number of years that people spend in retirement. While living longer and healthier lives is fundamentally good news, population ageing challenges the financial sustainability, solvency and adequacy of pension systems.

The current economic environment characterised by low returns, low interest rates, and low groivth in advanced economies is compounding these problems.

These factors may lead to lower resources than expected to finance retirement promises or simply lead to lower retirement income, low returns reduce the expected future value of contributions as assets accumulated will grow at a lower rate than expected, low interest rates may reduce the amount of pension income that a given amount of accumulated assets may be able to deliver, especially in defined contribution (DC) pensions.

Additionally, low economic growth may reduce the overall resources available to finance pension promises.

Fortunately, policy makers are responding, through a combination of measures, increasing coverage; encouraging higher contributions - especially in complementary funded private pensions; adjusting benefits; and extending contribution periods, especially by postponing retirement.

Countries have accelerated the pace of pension reforms to stabilise public pension expenditure while addressing concerns about whether pensions will be adequate in ageing societies. A majority of countries have implemented reforms that have partially addressed the problems of fiscal sustainability, such as planned increases in the statutory age of retirement, and linking benefits, retirement age and/or maximum contribution periods to future improvements in life expectancy. However, linking pension parameters to life expectancy might be regressive when the potential impact of differences across socio-economic groups is accounted for. Yet, adjusting those links to correct for these undesirable features is a very complex issue.


EXECUTIVE SUMMARY

Countries are accelerating the pace of pension reforms in order to stabilise both unsustainable government debt and public pension expenditure while addressing adequacy concerns in ageing societies

Most countries have been very active in changing their pension systems between February 2012 and September 2014. A majority of countries implemented reforms to improve the financial sustainability of their pension systems; some have done so while maintaining or improving the retirement-income adequacy for vulnerable groups. Only a few countries - those hit more severely by the economic crisis - resorted to nominal benefit cuts.

A larger number increased taxes on pension income or contributions to public defined benefit schemes, while reducing or deferring the indexation of pension benefits was widely used to mitigate spending.

Many countries have planned increases in the statutory retirement age, thereby enlarging the contribution base while preserving adequacy for those effectively working longer. Work incentives have been strengthened through tighter access to early-retirement and/or increased financial incentives to work. Measures to curb pension administration costs to obtain efficiency gains have been quite common.

To address income adequacy concerns some countries have extended the mandatory coverage of pension benefits to previously excluded groups (such as self-employed workers), and others have introduced new benefits. A number of countries have increased mandatory contributions to funded DC schemes. And policies to increase diversification and secure private pensions savings have also been common in the aftermath of the financial crisis.

1.1. Population ageing

Population ageing is generally defined as an increase in the median age of the population.

This ageing of the population is driven partly by declines in fertility rates from the high levels following the post-WWII generations and partly from increases in life expectancy. These trends translate into fewer young people and an increasing number of older people, which has pushed up the median age.

As a result of population ageing, the old-age dependency ratio will increase markedly. Figure 1.5 shows that the number of people of working age per person aged 65 or above -the inverse of the old-age dependency ratio - will fall in OECD countries from an average of around four people of working age per retiree (around 9 for developing countries, Brazil and China) to somewhere between one and two persons of working age per retiree. As a consequence, there will be fewer people in the workforce per retiree than today, which with all else equal will put tremendous pressure on economies in general and on pension systems in particular.

Increases in life expectancy are the main driving force behind population ageing, particularly in the long term. While the impact of the baby boom (the cohorts born when fertility rates were high) is a significant factor, its impact will be temporary as these cohorts pass away. In contrast, the increases in life expectancy are more permanent and are expected to continue. The ratio of people of working age relative to people aged 65 or above (Figure 1.5) is driven in the next 20 years by both the baby boom and improvements in life expectancy, and by improvements in life expectancy alone thereafter. Improvements in life expectancy will be the only driving force as long as fertility rates are constant (as it has been for the last several decades) and thus the cohorts entering the labour market will be the same size as the ones exiting into retirement.

proportion of the working age

1.6. Concluding remarks

The ageing of the population, particularly with respect to the continued increases in life expectancy, poses significant challenges to all types of pension plans. PAYG will face problems of sustainability, defined benefit schemes will need to ensure their continued solvency and defined contribution plans will have to consider ways to ensure an adequate income throughout retirement.

Policy needs to focus on implementing solutions to confront the fact that people are living longer lives to avoid undue financial burdens from the financing of retirement. Linking the age at which retirement benefits can begin to the changes in life expectancy would help ensure the sustainability of defined benefit and earnings based schemes in the future. However the way in which these two are linked needs to be carefully considered as mortality rates and life expectancy vary with socio-economic status. An alternative solution could be to link the number of contribution years to the life expectancy in a way which maintains a certain ratio of years in retirement relative to years contributing.

Pension and annuity providers which have promised a certain level of future income in retirement will need to make sure the mortality assumptions used for the valuation of their liabilities are adequate. If these assumptions are not in line with the expectations regarding the continued increase in life expectancy, the pension plan may not have sufficient assets to meet future payment obligations and runs the risk of insolvency. Regulation with respect to the mortality tables used, such as requiring the assumptions to be up-to-date and account for expected mortality improvement, could encourage pension plan and annuity providers to monitor their assumptions and assess their adequacy on a more regular basis.