Pensions in Denmark
Pensions in Denmark consist of both private and public programs, all managed by the
Also included in the Danish pension system are statutory supplementary pensions. These cover a significant portion of the population, sometimes much more than just the workforce. Supplementary pensions are institutionally and by ways of funding similar to the occupational system.[6]
Public pensions
Universal social pensions
In
The Social Disability Pension program is financed by general tax revenues dependent on social and medical factors and is historically known as a standard disability pension program. The SDP evaluates the medical and social criteria on three levels: the first granting eligibility to individuals younger than 60 with minimal work capacity; the next level is for people younger than 60 who have the work capacity equivalent to one third of normal, along with individuals between 60 and 66 years of age with hardly any ability to work; lastly, the ordinary SDP level is granted to individuals with the work capacity below half of normal, based upon social and/or health criteria.[10] All pensioners receive a minimum of 40 percent of their average earnings, and receive additional support through easily accessible universal healthcare and housing benefits.[11]
Occupational pensions
It is typical for the employer to contribute two thirds and the employee one third in the occupational pension system. Workers covered by different collective labor agreements are subject to mandatory participation, with varying contribution rates. Most plans depend on defined-contribution schemes, often including death and disability benefits. In 1998, the labor force was recorded to have contributed about 4% of their gross salary to pensions, and in 2002, 77% of the labor force contributed over 7%, exemplifying a steady growth in the average contribution rate. Depending on the plan, payouts can be collected in the form of phased withdrawals, lump sums, or life annuities.[15]
Personal and supplementary pensions
Personal pensions
Labor Market Supplementary Pension Fund
The largest of the supplementary pension schemes is the Labor Market Supplementary Pension Fund,
Employees' Capital Pension Fund
Employees' Capital Pension Fund (in Danish, the
Special Pension Savings
Introduced in 1998 as a fiscal policy tool to slow consumer spending while increasing pension saving by requiring all wage earners to contribute one percent of their gross salary, the Special Pension Savings program (SP) is Denmark's second largest supplementary pension scheme behind the ATP. Until suspension in 2003, SP benefits depended on investment returns and the size of the contribution.[25] Suspension can be examined as a result of reduced incentives to engage, as households are not always fully rational, finding value in the optimization of employer contributions instead.[26]
Challenges
Pension policy in Denmark during the 1980s and 1990s was defined by
Pension systems in advanced
See also
References
- ^ "Finansministeriets koncern". Archived from the original on 2018-09-09. Retrieved 2017-09-21.
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- ^ Ladekarl, Jeppe; Ladekarl, Regitze; Andersen, Erik Brink; Vittas, Dimitri (March 2007). "The Use of Derivatives to Hedge Embedded Options: The Case of Pension Institutions in Denmark". The World Bank Policy Research. Paper 4159.
- ^ Abrahamson, Peter; Wehner, Cecilie (2003). "Pension Reforms in Denmark" (PDF). p. 5.
- ^ Når du får folkepension, Borger.dk, [1]
- ^ Guardiancich, Igor (2010). "Current pension system: first assessment of reform outcomes and outpu" (PDF). European Social Observatory. p. 2.
- doi:10.3386/w17138.
- ^ Ladekarl, Jeppe; Ladekarl, Regitze; Andersen, Erik Brink; Vittas, Dimitri (March 2007). "The Use of Derivatives to Hedge Embedded Options: The Case of Pension Institutions in Denmark". The World Bank Policy Research. Paper 4159.
- ISBN 978-92-64-24444-3.
- ^ Trampusch, Christine. "Pension in Denmark" (PDF). Institute of Political Science, University of Berne.
- SSRN 2670476.
- ^ Ladekarl, Jeppe; Ladekarl, Regitze; Andersen, Erik Brink; Vittas, Dimitri (March 2007). "The Use of Derivatives to Hedge Embedded Options: The Case of Pension Institutions in Denmark". The World Bank Policy Research. Paper 4159.
- ^ Ladekarl, Jeppe; Ladekarl, Regitze; Andersen, Erik Brink; Vittas, Dimitri (March 2007). "The Use of Derivatives to Hedge Embedded Options: The Case of Pension Institutions in Denmark". The World Bank Policy Research. Paper 4159.
- ISBN 978-0-8213-7494-8.
- ISBN 978-0-88099-381-4.
- ^ Ladekarl, Jeppe; Ladekarl, Regitze; Andersen, Erik Brink; Vittas, Dimitri (March 2007). "The Use of Derivatives to Hedge Embedded Options: The Case of Pension Institutions in Denmark". The World Bank Policy Research. Paper 4159.
- ^ Kritzer, Barbara; Jankowsk, John. "Social Security Programs Throughout the World: Europe, 2014" (PDF). International Social Security Association. pp. 81–82.
- ^ Vittas, Dimitri (2008). A Short Note on the ATP Fund of Denmark (PDF). The World Bank. p. 5.
- ^ "International Update: Recent Developments in Foreign Public and Private Pensions" (PDF). www.ssa.gov. Social Security Administration. p. 1.
- ^ Ladekarl, Jeppe; Ladekarl, Regitze; Andersen, Erik Brink; Vittas, Dimitri (March 2007). "The Use of Derivatives to Hedge Embedded Options: The Case of Pension Institutions in Denmark". The World Bank Policy Research. Paper 4159.
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- ^ Ladekarl, Jeppe; Ladekarl, Regitze; Andersen, Erik Brink; Vittas, Dimitri (March 2007). "The Use of Derivatives to Hedge Embedded Options: The Case of Pension Institutions in Denmark". The World Bank Policy Research. Paper 4159.
- PMID 27917259.
- ^ Ladekarl, Jeppe; Ladekarl, Regitze; Andersen, Erik Brink; Vittas, Dimitri (March 2007). "The Use of Derivatives to Hedge Embedded Options: The Case of Pension Institutions in Denmark". The World Bank Policy Research. Paper 4159.
- ^ Ladekarl, Jeppe; Ladekarl, Regitze; Andersen, Erik Brink; Vittas, Dimitri (March 2007). "The Use of Derivatives to Hedge Embedded Options: The Case of Pension Institutions in Denmark". The World Bank Policy Research. Paper 4159.
- JSTOR 10.7758/9781610448031.
- ^ "IMF Country Reports: Denmark 2016". No. IMF Country Report No. 16/184. International Monetary Fund. International Monetary Fund. June 2016.
- JSTOR 10.7758/9781610448031.
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