Instrumentos para mejorar la equidad, transparencia i sostenibilidad de los sistemas de pensiones de reparto.

First chapter, directly related to the paper by Vidal-Meliá et al. (2006), demonstrates, by indirect means, the actuarial (im)balance of the Spanish pension system in its current configuration and measures the degree of aggregate economic risk to which the pensioner would be exposed when applying formulae for calculating retirement pensions based on notional accounts. This chapter perfects the scenario generation technique used for projecting macroeconomic indices and the utility of the pension is also analysed in both objective and subjective terms, taking the individuals risk aversion into account. If the projections used are even minimally close to the truth, the pension system will accumulate a major additional financial imbalance in the future, which, to be resolved, would require either a considerable reduction in the initial pension or a combination of severe parameter adjustments. The second chapter shows the usefulness of the actuarial balance sheet as an element of transparency, an indicator of the solvency of the pay-as-you-go system and an instrument capable of supplying positive incentives for improving financial management by reducing the traditional difference between the planning horizons of the politicians and the system itself. On the applied side, a first estimation is made, based on official figures, of the actuarial balance sheet for the Spanish contributory retirement pension system. The main conclusion is that the balance sheet as of 2006 shows a weak position of solvency. Although the solvency of the system as a whole improved very slightly in 2006, the assets deficit is 31.4% of liabilities. Finally, third chapter shows the usefulness of the automatic balance mechanisms (ABMs) and determines the advisability of applying an ABM in the Spanish pension system. The main contribution of this chapter is of the applied type, since it provides detailed options for the design of a mechanism in the case of Spain. The mechanism would need to set a more sustainable, realistic and equitable actuarial structure for the pension system: 40-45 (years of contributions and full working life), 65-70 (retirement age), 80-85 (theoretical replacement rate) - which would restore balance by reducing the expected IRR for contributors.