In Ecuador, the value of retirement pensions is adjusted by the annual inflation index. It is a measure approved by decree and in the labor code. The relay of the workers with the new generations.

There is no single set of conditions. The reforms play out in a dynamical space of the state, market and society. So, success hinges on adopting an incremental and reflexive strategy. See the paper below.

Article Policy Space as a Lagrangian Construct: Public-Private Partn...

I think you are right - a well managed pension reform requires a lot of pre-conditions and afterwards measures. Most important pre-conditions would include:

- reliable macroeconomic projections for the growth rates of the economy and other macro indicators like taxes and budgetary ;

- reliable demographic projections for the structure of the labor force and the population]

- open and well argumented dialog with the labor unions and other groups in the society which have a stake

- balanced approach with long-term orientation

The most important measures afterwards include:

- periodic revision of the parameters of the pensions

- measures to keep the system stable and sound in the long-run

a)

https://books.google.co.in/books?id=3rBU1AP1TOsC&pg=PA29&lpg=PA29&dq=What+pre-conditions+are+needed+for+a+pension+reform+to+be+successful?&source=bl&ots=DZE6Q8DTBu&sig=KmidJVbAf5YospNTsxWyJFWhVoY&hl=en&sa=X&ved=0ahUKEwiHk4bsr4nbAhVMQY8KHdUhCCsQ6AEITjAH#v=onepage&q=What%20pre-conditions%20are%20needed%20for%20a%20pension%20reform%20to%20be%20successful%3F&f=false

b)case of ukraine:

http://www.fmi-inc.net/news/pdfs/Ukraine%20PDF/Pension%20Reform_EA_April%202015.pdf

c)

https://openknowledge.worldbank.org/handle/10986/19799

these are the article i studied during my actuarial science studies for the paper CT 5: insurance and pension.

may be it would give some idea.

http://www.mwpweb.eu/IgorGuardiancich/publication_1442.html

This is a good analisys about implementing a pension reform, the Hungarian one. It is full of warnings: what not to do!

This is a very complex issue.One of the important factors is acceptance of the reform by the social partners. It helps to introduce the reform and makeit sustainable. See the following article: What drives public acceptance of reforms? Longitudinal evidence from a Dutch pension reform

By:Parlevliet, J (Parlevliet, Jante)[ 1,2 ]

PUBLIC CHOICE

Volume: 173

Issue: 1-2

Pages: 1-23

DOI: 10.1007/s11127-017-0447-7

Published:OCT 2017

Hello. The Greek pension reform has been one of the most painful and lengthy in the latest European history. You can find more info in my World Bank paper, attached.

Also linked:

http://documents.worldbank.org/curated/en/491431468178146012/pdf/105821-REVISED-PUBLIC-1601.pdf

Unfortunately the publication is only in Polish.

J. Hausner, Reformowanie systemu emerytalnego według programu „Bezpieczeństwo dzięki różnorodności”, [in:] Ekonomia polityczna reformy emerytalnej, S. Golinowska, J. Hausner (ed.), Centrum Analiz Społeczno-Ekonomicznych, Warszawa 1998, pp. 36-47.

The condition for a pension reform: program, organizational, financial, social and political maturity.

Pension reforms is a complex phenomena, success of which depends upon set of factors. From my perspective, broad coverage across various age cohorts might be an important determinant because it is individuals only who provide competency to financial market ultimately. Psychological factor might be another important set which may encourage individuals to participate voluntarily in any pension plan, like you pay 1% , State pay 3%. Apart from these, transparency and easy access to information like detail of pension fund, balance of pension account, see the investment portfolio of pension funds and compare the performance of different pension funds may accelerate success rate of any pension reform.

Answering the question: What prerequisites are needed for the pension reform to be effective? - I conclude that it is necessary to examine and define the progressing process of changes in the demographic structure of society and to relate this issue to the state of state finances. In many developed countries, changes in the demographic structure of society consist mainly of an aging population. On the other hand, in many countries the state of finances is not good if there is a high public debt to GDP ratio and a high state budget deficit. In such a situation, apart from the participatory pension system, which is one of the important pillars of the public social security system, other pillars should be developed, including capital pillars of the pension system. In this way, the pension system will be verified and safer for citizens. This thesis results from the experience of improving pension systems in many countries. In my publications I described this issue on the example of the Open Pension Funds system constituting the capital pillar of the pension system, which is a supplement to the participatory pillar of the pension system.

Regards

Dariusz Prokopowicz

Pension is the reward offered to an employee who is no more engaged in service but toiled from dawn to twilight untiringly during his service tenure. As such the essence of reform must not farewell but for welfare.