Correction of a passage required

Keynes had famously said ‘In the long run, we’re all dead’, if not very pessimistic, we may conclude that in the medium to long run we’re all pensioners (Congdon, 2006).

INTRODUCTION

The history of state pensions is said to be a history of broken promises, Arthur, (2006). That is why, one of the main problems in pension policy is to develop an institutional framework that guarantees that public and private pensions promises are kept Besley et al. (2005). The state pension related problems might have taken birth some times back, yet, its recongintion was felt in the early twentieth centuries. State pension saw itself transforming into private owned structural pension reforms in early 1980s, especially in Latin America and Eastern Europe. The aim of these pension reforms was, on one hand, to accentuate the realization that states were becoming vulnerable to the rising liabilities of pension dues and could not withstand to these financial burden, and, on the other hand, to ensure that the size of private sector be enhanced in the provision of old-age security, and to strengthen individual responsibility for old-age pensioners. These reforms also ensured that the funds are independent financial entities and each worker chooses his or her own pension fund which has been called a “worker-choice model” (Lindeman et al. 2000: 34).