AFDP 2024: Pensions Benefits and Social Security

The first session of “Pensions” course will be dedicated for the classical Pay-As-You-Go (PAYG) pension systems. PAYG systems work following an intergenerational solidarity, where the contributions paid by the current generation of workers are used to pay the benefits of the current generation of retirees. Such a system is very sensitive to demographic changes, such as longevity and population aging, and is still very popular in developing countries, but constitutes a small share of the multi pillar systems adopted in many Industrialized countries. The first part of the pensions' course will be dedicated to learning further about the financing mechanism of PAYG system, their strengths and weaknesses, and to presenting sustainability analysis cases, in which we consider Algeria as an example. The other types of pension systems, such as the fully funded, the notional account, and the universal systems will be developed in the second session of the course, i.e. Pensions II.