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Citizenship and Just Pension Design

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Retirement, Pensions and Justice
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Abstract

As a principle of justice, Citizenship designates the universal rights and obligations that are required to protect liberty. While all liberals assert the importance of individual sovereignty, there has been substantial disagreement around the legitimate scope and substance of citizenship. Classical liberals maintain that liberty is optimised only where governmental action is directed towards the possibility of coercive intrusion by other people. While accepting the requirement for an appropriate regime of negative rights, egalitarian liberals insist that liberty requires access to external resources, such as those made possible by redistributive income transfers. Considered only in terms of citizenship, a just retirement system must address the reality of financial insecurity, as well as the possibility of coercion.

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Notes

  1. 1.

    The liberties specified under principle 1 have implications for distributive justice independently of principle 2. The worth of political liberties can be augmented by imposing a minimum set of conditions including universal education and health care, and a role for the state as employer of last resort (Armstrong 2006).

  2. 2.

    At this point, we should highlight a fundamental distinction regarding the means by which property rights are given legitimacy. For libertarians, property rights should be regarded as “pre-institutional”, in that their legitimacy is generated independently of the legal and institutional arrangements created to protect them—reflecting, for example, “facts” of human nature (Nozick 1974; Machan 2006). As libertarians, they start by taking property rights as given. Rawlsian critics of the market reject this proposition, arguing that property rights should be regarded as “institutional”—their legitimacy is an artefact of the public discourses, laws and institutional arrangements that shape justice as fairness. A distribution of property is just only because the state says that it is.

  3. 3.

    At the very least, we might object that the “agreement” that is generated by aggregating people’s political preferences does not, in itself, carry any moral significance. While people are best placed—intellectually and emotionally—to determine their own conception of “the good”, they might struggle to articulate a coherent account of justice.

  4. 4.

    Conspicuously absent from Rawls list are important economic liberties—for example, “freedom of contract to buy and sell, to employ and be employed, or to accumulate and invest” (Lomasky 2005, p. 180). Why should such liberties be regarded as less important than the opportunity to participate in collective decision making, as realised by Western liberal democracies?

  5. 5.

    The NRA is the statutory retirement age that is characteristically applied to the population as a whole, triggering eligibility for social security benefits (Hyde et al. 2006).

  6. 6.

    The CRA is the retirement age that applies in second pillar retirement schemes, and is subject to contractual agreement between workers and their employers, not concerns around citizenship.

  7. 7.

    An exception to this general principle concerns employees in hazardous occupations. Their higher prevalence of ill-health and diminished longevity could mean that preferential treatment with regard to the NRA is a necessary corollary of their basic liberties.

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Hyde, M., Shand, R. (2017). Citizenship and Just Pension Design. In: Retirement, Pensions and Justice. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-60066-0_4

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  • DOI: https://doi.org/10.1057/978-1-137-60066-0_4

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