Pensions Key findings and country-level responses

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C. Pensions

Another social security area, where there were a number of revisions, was pensions. Changes were almost universally expansionary with 14 countries increasing benefits, or lowering the level of contributions, widening the scope of eligibility for benefits to previously uncovered groups, sometimes through significant structural reforms. Several countries adopted reforms, often not as a direct response to the present crisis, but with a view to increasing coverage andor improving effectiveness and efficiency reform of the public pension scheme in Uganda to make it more efficient. Among structural reforms, Argentina, Chile, Colombia, Malaysia, and Nigeria can be mentioned. The Government of Argentina launched a wide-ranging stimulus package, ranging from major structural reforms, such as the re-nationalization of the pension system and reductions in social security contributions. Chile also adopted earlier than originally planned some of the measures of a structural reform planned before the crisis establishing a solidarity pension system that benefits to those who, for various reasons fail to save enough to finance a decent pension. The objective for many countries was clearly to extend coverage to the uncovered, in particular workers in the informal economy and the poor. As an example, the Government of Malaysia established the 1Malaysia Retirement Saving Scheme to be administered by the Employees Provident Fund EPF to help the self-employed cope with income inadequacy during retirement. Through this scheme, they will be able to contribute voluntarily according to affordability with, for a period of five years, a government contribution of 5 per cent. Nigeria made a proposal to introduce a universal basic pension scheme with an attempt to include the informal sector in the social security system, while Colombia increased the coverage of the assistance programme for the elderly. Several countries increased the level of pension benefits, in particular for non- contributory pensions targeting the poor. Several examples of increases in the benefit level of non-contributory pension were reported in the Inventory Barbados, Cape Verde, Costa Rica, Lesotho or Russia. Some other countries, notably developed, provided, as an immediate and temporary measure, a supplementary one-time, or at least temporary, benefit to the elderly, sometimes in kind food support to pensioners in Paraguay. Among the countries which such measures are Bulgaria old-age supplements to pensions, the UK £60 US103 paid to all pensioners in 2008, Italy bonus for pensioners “Bonus famiglie”, Germany “extended pension guarantee” to maintain pension level to stabilize domestic demand, Thailand distribution of Baht THB 500 US7.2 allowances to about 5 million senior citizens for a period of six months and the United States with a one-time payment to retirees, disabled and social assistance recipients. Ireland and Jamaica both recorded contractionary pension policy measures following the implementation of austerity measures. Jamaica also took steps to address the gender difference in the pension age.

D. General social assistance programmes