International Public Pension Reform

As Great Britain undertakes a reform of its national public pension system, the International Herald Tribune examines what other countries are doing in that vein:

BELGIUM

After a number of strikes and tension with unions, the government increased the eligible age for early retirement to 60 from 58 and the years of contribution for full retirement benefits to 40 from 38 years.

FRANCE

A 2003 law obliges people to work longer for a full pension, with a phase-in from 2004 to 2008. Public sector workers must contribute for 40 years like private sector employees, instead of 37½ years. The contributions period required for a full pension will increase to 41 years by 2012 and 42 after 2012.

GERMANY

Germany agreed this year to raise the basic retirement age to 67 in steps from 2012 to 2029. Pensioners get no increase in benefits through 2009. In March, the government advised people to take extra coverage as pressure on basic pensions grows.

GREECE

Greece's center-right government has not tackled reforms of the country's social security system other than to stress the urgency for dialogue between social partners to prepare for an overhaul that will secure the system's viability.

IRELAND

A relatively young, fast- growing population means Ireland's problem is less acute, but almost half the members of its work force do not have pensions and the system is under review. In 2000 the government decided to set aside 1 percent of gross domestic product a year and the proceeds from the privatization of the telecommunications operator, Eircom, to help finance future state pensions.

ITALY

The new center-left coalition said during the campaign that it would scrap a 2004 law raise the retirement age to 60 or after 40 contribution years starting in 2008, in order to avoid the sharp jump in the retirement age. Instead it would closely monitor demographic trends and raise the retirement age if and when necessary.

PORTUGAL

The Socialist government raised the retirement age for public workers last year to 65 from 60 as part of convergence of public and private pensions. Portugal is evaluating options to reduce costs for private sector workers. Pensioners will also pay higher taxes under the 2006 budget.

CZECH REPUBLIC

The country needs to reform its pensions from the pay-as-you-go system. Parliament proposed raising the retirement age by a few months every year to reach 63 by 2013, and put the retirement for men born in or after 1953 and childless women born in or after 1956 at 63. Political parties seeking to raise the retirement age to 65 in 20 years.

JAPAN

With one of the largest retiring populations among industrialized nations, Japan is facing serious economic and social problems. The country has public and private pension plans, based on a pay-as-you-go system that relies on the contributions of employers and employees to pay pensions.

POLAND

The country changed its pension system in 1999, replacing a pay-as-you-go system with a "three pillar" approach including mandatory individual savings accounts. The move has been praised for averting a crisis, but caused a hiccup in the process of EU membership before EU agreed to allow Poland phase the transition costs into its accounts over five years.

SWEDEN

A severe budget crisis in the early 1990s prompted Sweden to overhaul its pension plan. The new system, introduced in 1999, places greater emphasis on balancing payments made into the system against expenditures as well as taking into account the economic growth rate. Individuals may invest a portion of pension payments in private pension funds of their choice.

UNITED STATES

Social Security is a social insurance program that also pays disability benefits, financed through payroll taxes and payable at a reduced level starting at age 62.

The program - also in danger of severe underfinancing - exists alongside private pensions set up by companies. President George W. Bush has called for a transition to partial privatization via individual accounts that could be invested in the stock market.