Optimal financing and self-adjusting mechanisms for sustainable retirement systems. The social stabilisation of pensions in times of crises and beyond: A critical review of three decades of pension reform and their outcomes

This brief paper first recapitulates the main pension financing options and reviews the theoretical pros and cons of pension funding seeking for a logical synthesis. In the second part of the paper, a broad review of the historical experience of pension reforms since the 1980’s is presented as well as in the context of the recent financial and economic crisis. A proposal is then presented to enable the social and financial stabilizations of public pension reforms with a view to guarantee pension levels in times of crisis and beyond. The paper ends with an outline of the main principles of a pragmatic ILO pension policy stance. The present paper focuses primarily on contributory public pension arrangements.