Premium
Contribution evasion: Implications for social security pension schemes
Author(s) -
McGillivray Warren
Publication year - 2001
Publication title -
international social security review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.349
H-Index - 28
eISSN - 1468-246X
pISSN - 0020-871X
DOI - 10.1111/1468-246x.t01-1-00102
Subject(s) - evasion (ethics) , pension , revenue , public economics , social security , state (computer science) , actuarial science , compliance (psychology) , economics , tax evasion , business , finance , market economy , psychology , medicine , computer science , social psychology , immune system , algorithm , immunology
However well‐conceived a contributory national pension programme may be, however sound the economic principles on which it is founded, irrespective of whether it is based on defined benefits or defined contributions or whether it is publicly or privately managed, if participants fail to meet their contribution obligations the pension scheme cannot achieve the objective of providing adequate retirement income for them and their dependants. Contribution evasion has obvious implications for individuals. But it also has implications for the State, which may be importuned to supplement inadequate pensions from general revenues. The nature of contribution evasion and the reasons why contributions are evaded are surveyed. Possible practical measures which have been applied to promote compliance are described and the dangers of contribution evasion to participants and to the State are outlined.