On the contribution base cap and the progressivity of pension formula: basic calculation
DOI:
https://doi.org/10.15170/SZIGMA.55.1240Keywords:
public pensions, cap on the contribution base, threshold, progressivity coefficient, cap on benefits, redistributionAbstract
This paper studies the interaction between the cap on the pension contribution base and the progression (threshold and coefficient). Both tools limit the higher benefits but the former also reduces the contribution while the latter only diminishes the benefits. Our simplifications make room for analytical calculations, and help us check further, practical calculations.
