Investor Presentaiton
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Need to simplify pension calculation rules
Complexity of calculating pension rights arises from the rules to compute the reference wage, which is
crucial: sharply non-linear weights granted to lifetime wages are an exception
Lack of transparency in understanding entitlements when they are supposed to accrue: whole career is
accounted for to compute pension entitlements, but entitlements accrued in a given year depend on the
career before and the remaining part of the career
This complexity prevents contributors from understanding pension entitlements and anticipating their
income in old age
It also weakens the management of the system by making it difficult and more uncertain to project pension
flows
Some non contributed periods generate no entitlements AND lower already accrued and future
entitlements (through lowering the reference wage): this implies a double penalty, potentially leading to a
large impact of unemployment periods on pensions
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