How Should We Measure Pension Liabilities in EU Countries?
How pension liabilities are measured is central to our understanding of the long-run sustainability of European social security programmes. Better data and forecasting procedures are an integral part of any attempt to understand the magnitude of these pension liabilities. Measures of pension liabilities are highly susceptible to both measurement error and to misinterpretation. Moreover, misjudgement of future costs are exacerbated by accounting measures that tend both to understate the extent of future liabilities and to overstate the potential costs of some reform strategies.
KeywordsPension Scheme Public Pension Earning Growth Pension Reform Primary Balance
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