Torben M. Andersen chairman of the pension commission

The government’s future pension commission will be chaired by professor Torben M. Andersen from the Department of Economics and Business.

2014.05.21 | Martin Hagelskjær Damsgaard

The Danish government have decided to appoint a pension commission, and over the next two years, the commission will closely inspect the Danish pension system including state pension and occupational pension schemes. Professor Torben M. Andersen from the Department of Economics and Business has been appointed chairman of the new commission.

Overall, the Danish pension system works well, but the rules for state pension and retirement savings are very complicated, which in some cases may cause people’s retirement savings to be subject to high taxation rates; especially when it comes to pension payment to the low and middle income groups. With Torben M. Andersen at the head of the table, the experts on the pension commission will place the system under scrutiny and point to new solutions, making it more appealing for Danes to save up for retirement.

Torben M. Andersen calls the task “incredibly exciting”. Both because there are so many aspects involved and in light of the great societal impact that a well-functioning pension system has on all groups in society.


The pension commission have been set the following tasks:

  • They will account for and analyse the income distribution, contribution ratio and income components across different age groups, gender and payment processes.
  • They will analyse the effects on people’s incentive to work before and after the time they are allowed to retire as well as their incentive towards private savings and to consider the distribution of various types of savings. This includes quantifications of the effects of incentives on working hours, private savings, growth goals and public finances.
  • They will analyse and assess whether the pension system is solid enough, and whether there are any inexpedient aspects e.g. in the balancing of the need to reduce income inequality and ensuring strong incentives towards private savings and to keep working. This also calls for a clarification of whether the interplay between the organisation of public services, the Labour Market Supplementary Pension and private pension schemes can lead to changes over the course of the next ten years in the occupational pension schemes or people’s private savings behaviour – along with an estimation of the possible consequences.
  • They will develop recommendations for specific policy changes, to the extent that any inexpedient aspects are identified. This includes an impact assessment of the effects of such recommendations on the income distribution, incentives, growth goals and public finances.

 

Torben M. Andersen has been professor at Aarhus University since 1989 and is considered one of Denmark’s most experienced economists. He has an impressive list of publications and will be drawing on his massive experience from being chairman of or participating in several Danish and international commissions and expert groups.

See Torben M. Andersen’s resume.

See the resumes of the two other pension commission members from the Department of Economics and Business

Professor Nabanita Datta Gupta
Professor Carsten Tanggaard                                                                                                                                                      
The last two members of the commission are Jørgen Elmeskov, Statistics Denmark and Lisbeth Pedersen, SFI.

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