Module # Module Name Task Name Output Sheet Name Sheet Heading Units Relevant PROST input sheet Output description Projects male population using baseline population of the country and fertility rates, mortality rates input by 1 PP_M Population Projection - for Males Count in 000s Population user in input file sheet 'Population'. Population Projection & Pyramids Projects female population using baseline population of the country and fertility rates, mortality rates input by 1 PP_F Population Projection - for Females Count in 000s Population user in input file sheet 'Population'. 1 PL_Pyramids Population Pyramids Population pyramids for Males and Females for the projection period Probability of dying = Mortaliy rate from input file "Population" sheet Note that when creating a life table for the population as a whole, PROST derives probabilities of dying (both genders) as a weighted average of gender-specific probabilities, using surviving population of each gender as weights. The ratio of newborn boys and girls is given by sex ratio at birth specified by the user. Surviving rate = 1 - Probability of dying Surviving population starts at 100,000 at age [0] cohort 1 Life Table LT Life Table - All Population - Both Genders Population Surviving population at age n = Surviving rate of age n-1 * Surviving population of age n-1 Death population of age n = Probability of dying of age n * Surviving population of age n Surviving Probability to 60 of age n = PRODUCT(Surviving rate of age n : Surviving rate of age 59) Stationary population=(1-0.5*Prob of Dying)*Surviving Population. Accumulated population is the cumulative stationary population recursively starting from the oldest cohort. Life Expectancy = Accumulated Pop/Surviving Population Life expectancy summary for Males and Females;includes LE at birth, age age 60, at age 65 and at retirement age specified in PROST. Retirement Portion/Life Length(%) at Age 15+ = LE at Retirement age/(Life Expentancy at ret age + Retirement Population Projection age - 15) Retirement Portion/Life Length(%) at Age 20+ = LE at Retirement age /(Life Expentancy at ret age + Retirement 1 life Projection of Life Expectancy Changes Population age - 20) Life Expectancy Changes Individual Support Ratio at Age 15+ = (Retirement age - 15) / Life Expectancy at retirment. Individual Support Ratio at Age 20+ = (Retirement age - 20) / Life Expectancy at retirement. Individual support ratio is different from system or population dependency rates. ISR simply shows that if individulals continue to work for the same number of years, they will have lower support ratios as with rising LE they would need to support themselves for longer 1 Full_LE_M All Life Expectancies - for Males In years Population Life expectancy for males by single age and over time 1 Full_LE_F All Life Expectancies - for Females In years Population Life expectancy for males by single age and over time Summarizes population projections and calculates population dependency ratios Population dependency ratio is sum of child dependency rate (ages 0-14/15-ret age) + elderly dependency rate (ret age+/15-ret age) Support ratio in this sheet is the inverse of elderly dependency ratio. It is calculated as (15-ret age)/ret age+. Total fertility rate is average number of births per 1000 women in a given year (comes directly from fertility rate 1 Summary of Population Projections Group Summary of Population Projections Count in 000s Population assumptions in input file). For example, if the fertility rate of women in 2019 is 343.4%, then that means that there are ~1,343 births per 1000 women. Gross death rate is average number of deaths per 1000 in a given year. For example, if the death rate in 2020 is 0.5%, then it means that there are ~5 deaths per 1000 persons. Gross birth rate is Total count of new borns at time t / total population at time t-1. Gross birth rate and death rate might not be accurate when the new immigration is significant. 1 Graphical Summary: Module 1 PL_POP Population Dynamics Produces a graphical summary of module 1 tasks Number of employed males by age at time t= Population of males * Labor Participation rate * (100% - 2 Employment_M Employment - for Males Count in 000s Population & Labor Unemployment rate) Number of employed males by age at time t = Population of females * Labor Participation rate * (100% - 2 Employment_F Employment - for Females Count in 000s Population & Labor Unemployment rate) Contributors count for males as fed into the "Pensions" PROST sheet for baseline and projected counts across the projection period. If a country has exemption rules in place, then the effective contributors count would be different from nominal contributors. Suppose a country gave an individual service credit for time served in armed forces or at 2 NC_M Nominal Contributors - for Males Count in 000s Pension university or during maternity periods or unemployment periods, etc. without collecting contributions from the person to cover those periods, irrespective of whether they actually contributed; there is an exemption rate in the Pension sheet of the input file which specifies who is exempt from making contributions, but still receives service credit. Contributors count for females. Base year number is what was fed into the "Pensions" PROST sheet in 2 NC_F Nominal Contributors - for Females Count in 000s Pension baseline. Remaining years show projected counts by age Newly joined male contributors projected across the projection period. These are calculated based on coverage increase assumption or hiring assumption, as the case maybe. Mortality factors are applied to them. Newly joined are calculated as Contributors at a particular age and gender at time t minus the contributors of 2 JC_M Newly Joined Contributors - for Males Count in 000s Pension the one year earlier age and gender cohort corrected for mortality. If we see negative numbers in the matrix, it can be attributed to people jumping in and out of the contributory labor force at these ages. It could also reflect the starting demographics, where due to wars or epidemics, one cohort is differently sized from the adjacent cohorts. Newly joined female contributors projected across the projection period. 2 JC_F Newly Joined Contributors - for Females Count in 000s Pension Newly Joined Contributors (JC) are calculated in year+1 and its calculation depends on the contributor method (flow or stock). Eventual Retirees Male: number of covered individuals who will eventually retire. They are derived by looking 2 ERet_M Potential Claimants - for Males Count in 000s Pension backwards, i.e. , starting with the oldest cohort. Contributors and Beneficiaries Eventual Retirees Female: number of covered individuals who will eventually retire. They are derived by looking 2 ERet_F Potential Claimants - for Females Count in 000s Pension backwards, i.e. , starting with the oldest cohort. Deceased Male contributors, projected across the projection period. 2 GC_M Dead Contributors - for Males Count in 000s Population & Pension Deceased contributors at [n] (Male) = Nominal contributors at [n-1] (Male) * Probability of dying at [n-1] (Male). Contributors and Beneficiaries Deceased Female contributors, projected across the projection period. 2 GC_F Dead Contributors - for Females Count in 000s Population & Pension Deceased contributors at [n] (Female) = Nominal contributors at [n-1] (Female) * Probability of dying at [n-1] (Female). Deceased Male Pensioners, projected across the projection period. 2 DP_M Dead pensioners - for Males Count in 000s Population & Pension Deceased pensioners at [n] (Male) = Existing pensioners at [n-1] (Male) * Probability of dying at [n-1] (Male) * Prob of dying multiplier for old age pensioners at [n-1] (male) (if specified) Deceased Female Pensioners, projected across the projection period. 2 DP_F Dead pensioners - for Females Count in 000s Population & Pension Deceased pensioners at [n] (Female) = Existing pensioners at [n-1] (Female) * Probability of dying at [n-1] (Female) * Prob of dying multiplier for old age pensioners at [n-1] (female) (if specified) Deceased Male Disabled, projected across the projection period. 2 GD_M Dead disabled - for Males Count in 000s Population & Pension Deceased Disabled at [n] (Male) = Existing Disabled at [n-1] (Male) * Probability of dying at [n-1] (Male) * Prob of dying multiplier for Disabled at [n-1] (male) (if specified) Deceased Female Disabled, projected across the projection period. 2 GD_F Dead disabled - for Females Count in 000s Population & Pension Deceased Disabled at [n] (Female) = Existing Disabled at [n-1] (Female) * Probability of dying at [n-1] (Female) * Prob of dying multiplier for Disabled at [n-1] (female) (if specified) New old age pensioners for males across the projection period. 2 NP_M New Old Age - for Males Count in 000s Population & Pension New Old age Pensioners at time t and age a = Existing Old age pensioners at time t and age a - Existing Old age pensioners at time t-1 and age a-1 + Dead Old age pensioners at time t and age a New old age pensioners for Females across the projection period. 2 NP_F New Old Age - for Females Count in 000s Population & Pension New old age pensioners at [n] (Female) = Existing pensioners at [n] - Existing pensioners at [n-1] + Dead Pensioners at [n] 2 EP_M Old Age - for Males Count in 000s Pension Existing Male Old age pensioners 2 EP_F Old Age - for Females Count in 000s Pension Existing Female Old age pensioners New Disabled males across the projection period. 2 ND_M New Disabled - for Males Count in 000s Pension New Disabled at [n] (Male) = Existing Disabled at [n] - Existing Disabled at [n-1] + Dead Disabled at [n] New Disabled for Females across the projection period. 2 ND_F New Disabled - for Females Count in 000s Pension New Disabled at [n] (Female) = Existing Disabled at [n] - Existing Disabled at [n-1] + Dead Disabled at [n] 2 ED_M Disabled - for Males Count in 000s Pension Existing Disabled males 2 ED_F Disabled - for Females Count in 000s Pension Existing Disabled females Total Contributor Outflow through Death, 2 Outflow_M Count in 000s Population & Pension Outflow of Male contributors = Death of male contributors + New Male Pensioners + New Disabled Males Retirement and Disability - for Males Total Contributor Outflow through Death, Outflow of Female contributors = Death of Female contributors + New Female Pensioners + New Disabled 2 Outflow_F Count in 000s Population & Pension Demographic Structure Retirement and Disability - for Females Females The rate here represents the total existing pensioners + existing disabled, as a percentage of the population at that particular age for males Adjusted Pensioners as Percent of Population - for Let's suppose coverage expands in a country. The number of people collecting a pension in the future will be 2 Retiree Rate_M % Population & Pension Males higher than the percentage of the population collecting a pension now. PROST internally makes the corrections. It knows how many people from each cohort contributed each year and can then, using the length of service, and subtracting out those who died or became disabled before reaching retirement age, figure out how many eventual retirees should be in this cohort. Adjusted Pensioners as Percent of Population - for The rate here represents the total existing pensioners + existing disabled, as a percentage of the population at 2 Retiree Rate_F % Population & Pension Females that particular age for females The average accrual of length of service per year can be derived from the retirement pattern and length of service at retirement. It is assumed for simplicity that covered individuals accrue their length of service linearly 2 Length of Service and Retirement Patterns LOS_Average_M Average Accrued Length of Service - for Males Count Population & Pension throughout their career, starting from the youngest working age and ending a year before retirement. The derivation is done backwards, starting with the oldest cohort. The average accrual of length of service per year can be derived from the retirement pattern and length of service at retirement. It is assumed for simplicity that covered individuals accrue their length of service linearly 2 LOS_Average_F Average Accrued Length of Service - for Females Count Population & Pension throughout their career, starting from the youngest working age and ending a year before retirement. The derivation is done backwards, starting with the oldest cohort. LOS at retirement for males, as defined in the "Pensions" . 2 LOS_AtRetirement_M Length of Service at Retirement - for Males In years Pension In funded system benefits, the average accrued LOS would be different from LOS at retirement. In a funded system, interest is generated during one's career, so it is important to know how many years of service have been accrued, not just at retirement, but along the career as well. 2 LOS_AtRetirement_F Length of Service at Retirement - for Females In years Pension LOS at retirement for females, as defined in the "Pensions" sheet Nominal Contributors (g, t) = As defined in "Pensions" sheet Effective Contributors (g, t) = Nominal Contributors * (100% - exemption rate %) (Exemption rate is a % of nominal contributors, i.e., those who are exempt, e.g., military service) New Disability (g, t) = Sum total across ages from "ND_M" + "ND_F" output sheets New Old age (g, t) = Sum total across ages from "NP_M" + "NP_F" output sheets Old age (g, t) = Count of Old age pensioners as defined in the "Pensions" sheet Disability (g, t) = Count of Disability pensioners as defined in the "Pensions" sheet Pension Survivors (Children, Parents, Spouse, et al.) and Orphans for t > base year :- 2 Demographic Structure of Pension System Composition Demographic Structure of Pension System Count in 000s Pension Survivors (t) = Total Survivors [base year] * (Total Nominal Contributors [t] + Total Effective Pensioners [t]) / (Total Nominal Contributors [base year] + Total Effective Pensioners [base year]) Orphans (t) = Total Orphans [base year] * (Total Nominal Contributors [t] + Total Effective Pensioners [t]) / (Total Nominal Contributors [base year] + Total Effective Pensioners [base year]) PROST calculates the adjustment factor that checks the consistency among the contributor numbers now and pensioner numbers in the future with the entered LOS at retirement. The internal workings of PROST will assume one year of service earned each year of future work for all contributors, and to the extent that is not true, the adjustment factor will assure consistency among the LOS, number of contributors and new retirees. Total Employment (g, t) = Summing the three dimensional matrix "Emplyment_M" and "Employment_F" by age and gender Nominal Coverage rate is the percentage of population that are contributors to the scheme out of the total employment in the country Nominal Coverage rate % (t) = Nominal Contributors (t) in "Composition" sheet / Total Employment (t) Similarly, Effective Coverage rate % (t) = Effective Contributors (t) in "Composition" sheet / Total Employment (t) Total Beneficiaries = The % share of Old age, Disability, Survivors, Orphans by count out of the total 2 Pension System Dependency Dependency Pension System Dependency Labor & Pension beneficiaries Nominal System Dependency rate, Old age (t) = (Total Old age beneficiaries / Total Nominal Contributors) *100 Nominal System Dependency rate, Total benficiaries (t) = (Total beneficiaries / Total Nominal Contributors) *100 Effective System Dependency rate, Old age (t) = (Total Old age beneficiaries / Total Effective Contributors) *100 Effective System Dependency rate, Total benficiaries (t) = (Total beneficiaries / Total Effective Contributors) *100 As % of base-year value : Every variable is represented as a % of base year value 2 Graphical Summary: Module 2 PL_SD Demographic Structure of Pension System Graphical summary of the output from Module 2 Average covered wage male is the average wage for males subject to the wage ceiling constraint. For example, 3 Constraint_M Average Covered Wage - for Males Amount in 000s Pension if the total wage of an employee is above the ceiling, then the constraint wage matrix would cap the employee's wage Average covered wage female is the average wage for males subject to the wage ceiling constraint. For 3 Constraint_F Average Covered Wage - for Females Amount in 000s Labor example, if the total wage of an employee is above the ceiling, then the constraint wage matrix would cap the employee's wage Average Unconstraint wage males is the average wage of male contributors without any wage constraint 3 Unconstraint_M Average Unconstraint Wage - for Males Amount in 000s Labor (Note: If there is no wage ceilieng then constraint and unconstraint wage metric will be same) 3 Unconstraint_F Average Unconstraint Wage - for Females Amount in 000s Labor Average Unconstraint wage females is the average wage of female contributors without any wage constraint Reports the percentage of contributors by age that earn above the wage ceiling defined in the "General" sheet Percent of Contributors Above the Ceiling - for 3 Above_M % General & Pension as per the scheme rules Males If there are no wage ceiling rules, then this matrix would be zero. Individual Wages Reports the percentage of effective contributors by age overtime that earn above the wage ceiling defined in Percent of Contributors Above the Ceiling - for 3 Above_F % General & Pension the "General" sheet as per the scheme rules Females If there are no wage ceiling rules, then this matrix would be zero. Reports the percentage of contributors by age overtime that earn below the minimum legal wage in the Percent of Contributors Earning Minimum Wage - 3 AtMin_M % General & Pension country. for Males Baseline distribution taken from user input in General sheet. Percent of Contributors Earning Minimum Wage - Reports the percentage of effective contributors by age overtime that earn at or below the minimum legal wage 3 AtMin_F % General & Pension for Females in the country Shows the % count of male employees by age and by income brackets. Horizontal sum across income bracket Income distribution Nominal Contributors - for 3 IncDistr_M % General & Labor for each age should equal 100%. Males The number of income brackets is same as number of brackets creates in PROST. Income distribution Nominal Contributors - for Shows the % count of female employees by age and by income brackets. Horizontal sum across income bracket 3 IncDistr_F % General & Labor Females for each age should equal 100%. Real and Nominal GDP are the IMF Article IV estimates used over the projection period. Real GDP per capita = Real GDP / Population Real GDP growth, Real GDP per capita growth and Inflation rate are as specified in Input sheet of PROST. Price Index is = 1/(1+ inflation rate). Minimum wage is calculated across the projection period using wage growth assumption in input sheet. All employees: All Employees Wage Bill represents the total unconstraint wage multiplied by count of all employees in the Macroeconomic Indicators and Pension Fund economy. 3 Macroeconomic Trends MacroIndicators Revenues All employees Average nominal wage = All employees Wage Bill / Total Employed in the economy The total wage bill is also shown as % of GDP for all employees. Effective Contributors: In a similar way, wage bill (by gender) and Average nominal wage (by gender) are calculated for effective contributors. When there is a contribution ceiling that is less than the highest wage bracket, PROST will calculate and report two sets of average wages in the MacroIndicators output report. The average wage of contributors will be the unconstrained average, and the average insured wage of contributors will be the constrained average. When a portion of benefit is commuted, beneficiary receives lump sum payment at the beginning of commutation period, and then, annual pension payments are reduced by some amount until the end of commutation period is reached, when the original pension is restored. PROST computes annuity factors based 3 PreCommFactors_M Pre-reform Commutation Factors - for Males Absolute factors General & Factor on nominal discount rate and the commutation period, which can be used to calculate actuarially fair amount of lump sum equivalent to a stream of benefits forgone during commutation period. These are commutation factors as input in Factors sheet, pre reform. They vary by age . When a portion of benefit is commuted, beneficiary receives lump sum payment at the beginning of commutation period, and then, annual pension payments are reduced by some amount until the end of commutation period is reached, when the original pension is restored. PROST computes annuity factors based 3 PreCommFactors_F Pre-reform Commutation Factors - for Females Absolute General & Factor on nominal discount rate and the commutation period, which can be used to calculate actuarially fair amount of lump sum equivalent to a stream of benefits forgone during commutation period. These are commutation factors as input in Factors sheet, pre reform. They vary by age This sheet outputs actuarially fair reduction factors for males calculated for single ages before the retirement Pre-reform Actuarially Fair Reduction Factors for age 3 PreRedFactors_M % Factor Early Retirement - for Males (Note : If red factor is 50% at age 50 it means that the country should reduce pension benefits by 50% if an individual retires at age 50) Pre-reform Actuarially Fair Reduction Factors for This sheet outputs actuarially fair reduction factors for females calculated for single ages before the retirement 3 PreRedFactors_F % Factor Early Retirement - for Females age Finances of Monopillar PAYG This sheet shows the percentage of male old age beneficiaries in a particular age cohort that receive the legal Percent of Old Age Pensioners Receiving Minimum minimum pension 3 AtMinimum_M % General & Pension Pension - for Males (Note : If we have 57% at age 70 in year 2030 this means that 57% of those who are age 70 in year 2030 will expect to receive the minimum pension applicable in year 2030) Percent of Old Age Pensioners Receiving Minimum For each age cohort, this sheet shows the percentage of female old age beneficiaries that receive the legal 3 AtMinimum_F % General & Pension Pension - for Females minimum pension Pension Benefits Average replacement rate is an average of RR as a % of economy-wide unconstrained average wage and the RR 3 AverRepl_M Monopillar Replacement Rates - for Males % Pension & Labor as % of individual wage Average replacement rate is an average of RR as a % of economy-wide unconstrained average wage and the RR 3 AverRepl_F Monopillar Replacement Rates - for Females % Pension & Labor as % of individual wage Represents the income brackets (minimum bracket to maximum bracket) for old age benficiaries by age for 3 PenDistr_M Income distribution Old age - for Males % General males Represents the income brackets (minimum bracket to maximum bracket) for old age benficiaries by age for 3 PenDistr_F Income distribution Old age - for Females % General females Minimum and Maximum annual pension benefits overtime calculated based on indexation of min/max pension specified in PROST input sheet For New Old age and new disabled, this sheet gives us the avg retirement age, avg length of service, avg replacement rate, pension wealth in terms of avg economy wide wage and percent of pensioners receiving minimum pension. Average replacement rates for new old age are calculated by first calculating the present value of the benefits for new pensioners, and then dividing it by the total number of new pensioners and average economy-wide 3 Benefit Pension Benefits unconstrained wage. Similar calculation is used for Disability pensioners. Pension wealth in terms of average wage is the net present value of the promised benefits at the time of retirement in terms of average unconstrained wage in the economy. Average replacement rates for existing old age are calculated by first calculating the present value of the benefits for existing pensioners, and then dividing it by the total number of existing pensioners and average economy-wide unconstrained wage. Similar calculation is used for Disability pensioners. Percent of minimum pension recipients among old age, by gender, are also specified here. Total Payments overtime to old age, disability, survivors and orphans are also calculated here. PAYG Total revenue = Employer + Employee Contributions + Pensioner Contributions + Govt Contributions and transfers + Other Revenue + Investment Returns PAYG Total Expenditure = All pension payments + Other payments + Administrative costs + Cost of Asset management/Interest payments PAYG Current balance = PAYG Total Revenue - PAYG Total Expenditure PAYG Reserve (Explicit PAYG Debt) = PAYG Current Banalce + Reserve fund at (base year - 1) PAYG Implicit Debt = Debt to current nominal contributors + Debt to existing old age beneficiaries + Debt to existing disabled + Debt to survivors + Debt to Orphans (Debt to current nominal contributors was initially calculated as follows: take a 40 year old - we know their current length of service, we know the length of service at retirement, so we know what proportion has been currently earned. We could give these people a prorated pension based on current earnings. But since it will only be collected at retirement age, we take the present value of what will be paid in the future as of now. I think we later realized that since PROST keeps track of who in a cohort becomes disabled, who retires and when, we could take the present value of the future payments to a particular 3 Financial Flows & IPD Balance Financial Flows & IPD cohort and use that. The value of the second approach is that not all contributors become old age pensioners - some die early and some become disabled. This method corrects for that.) Total PAYG Debt = Implicit Pension Debt - Reseve at base year New Government Obligations = Unconditional Transfers from the general budget + Govetnment contributions on behalf of the contributors Accumulated Govt Debt = Government debt at (base year - 1) * (1 + Inflation rate %) * (1 + bond_market_rate%) + New govt obligations Consolidated PAYG and Govt. Debt = Total PAYG Debt + Accumulated Government debt The above mentioned key variables are also shown as % of GDP and as % of Wage bill. Net present value for the six key variables are shown, using the inflation rate and discount rate as the discounting factors. Average Contribution rate from employees and employers = Contributions collected / Wage bill of effective contributors. Implicit pension debt is the number that shows how much it would cost if a PAYG scheme was discontinued and all implicit up to date obligations were paid out. 3 Financial Flows & IPD IPD_new Implicit Pension Debt Total IPD = Debt to current nominal contributors + Debt to existing old age beneficiaries + Debt to existing disabled + Debt to survivors + Debt to Orphans Total IPD is also shown as a % of GDP here. 3 Graphical Summary: Module 3 PL_Balance Pre-reform Finances Demographic Structure of Pension System - Rwanda Example 2019 2020 and so on…. Units Description Nominal Contributors 446.0 480.9 Count in 000s Number of male and female contributors projected by model (base year is input by user) Male 305.3 328.9 Count in 000s Number of male contributors projected by model (base year is input by user) Female 140.7 152.1 Count in 000s Number of female contributors projected by model (base year is input by user) =Nominal Contributors(M+F) * (100% - Exemption %). When there are rules in place in the scheme for those exempted from contributing, eg. Military, then effective contributors tells us the actual Effective Contributors 446.0 480.9 Count in 000s number of contributors, net of those exempted. This number will be equal to "Nominal Contributors" if there are no such rules in place. Male 305.3 328.9 Count in 000s =Nominal Contributors_Males * (100% - Exemption %). Female 140.7 152.1 Count in 000s =Nominal Contributors_Females * (100% - Exemption %). Number of male and female new disabled New disabled count can be calculated in 2 ways (based on the method chosen in 'General' sheet): New Disability Count in 000s Method 1): New disabled at time t and age a = Existing disabled at time t and age a - Existing disabled at time t-1 and age a-1 + Dead disabled at time t and age a Method 2): New disabled at time t and age a = Nominal Contributors at t-1 and a-1 * Disability rate, (where disability rate = ratio of new disabled of age a to the last year’s contributors of age a-1) Male Count in 000s Number of new male disabled projected by model Female Count in 000s Number of new female disabled projected by model Number of male and female new old age pensioners. New Old age Pensioner's count can be calculated in 2 ways (based on the method chosen in 'General' sheet): Method 1): New Old age Pensioners at time t and age a = Existing Old age pensioners at time t and age a - Existing Old age pensioners at time t-1 and age a-1 + Dead Old age pensioners at time t and age New Old age 2.6 Count in 000s a Method 2): New Old age pensioners at time t and age a = Nominal Contributors at t-1 and a-1 * Retirement rate, (where Retirement rate = ratio of new old age pensioners of age a to the last year’s contributors of age a-1) Male 2.1 Count in 000s Number of new male old age projected by model Female 0.5 Count in 000s Number of new female old age projected by model Total old age pensioner count- male and female Existing Old age Pensioner's count can be calculated in 2 ways (based on the method chosen in 'General' sheet): Old age 18.9 20.9 Count in 000s Method 1): Existing Old age Pensioners at time t and age a = Population at time t and age a * Retirement rate, (where Retirement rate = percent of all old age pensioners of age a in the total population of age a) Method 2): Existing Old age Pensioners at time t and age a = Exisitng Old age pensioners at age a-1 and time t-1 + New Pensioners at time t and age a - Dead Pensioners at age a and time t Male 15.6 17.1 Count in 000s Number of existing male old age projected by model Female 3.3 3.8 Count in 000s Number of existing female old age projected by model Total existing disabled count- male and female Existing Disability count can be calculated in 2 ways (based on the method chosen in 'General' sheet): Disability Count in 000s Method 1): Existing Disabled at time t and age a = Population at time t and age a * Disability rate, (where Disability rate = percent of all disabled of age a in the total population of age a) Method 2): Existing Disabled at time t and age a = Exisitng Disabled at age a-1 and time t-1 + New Disabled at time t and age a - Dead Disabled at age a and time t Male Count in 000s Number of existing male disabled projected by model Female Count in 000s Number of existing female disabled projected by model Survivors 16.0 17.3 Count in 000s Total male and female survivors Male Count in 000s Female Count in 000s Orphans Count in 000s Total male and female orphans Total Beneficiaries 34.9 38.2 Count in 000s Sum total of all existing beneficiaries (Old age + Disability + Survivors + Orphans) Absolute PROST calculates the adjustment factor that checks the consistency among the contributor numbers now and pensioner numbers in the future with the entered LOS at retirement. The internal workings of Male adjustment: 3.828144073 PROST will assume one year of service earned each year of future work for all contributors, and to the extent that is not true, the adjustment factor will ensure consistency among the LOS, number of Absolute contributors and new retirees by reducing number of old age pensioners. Note that the adjustment factor does not work when using 'nominal number of position' or when modelling retirement age increase Female adjustment: 7.43309164 automatically. Macroeconomic Indicators and Pension Fund Revenues - Rwanda 2019 2020 and so on… Units Description Macroeconomic Environment Real GDP 9,199,000.0 Amount in Millions Real GDP of the economy (base year input by the user in 'General' sheet) Nominal GDP 9,199,000.0 Amount in Millions Nominal GDP of the economy (base year input by the user in 'General' sheet) Real GDP per capita 728.5 Amount in 000s =Real GDP / Population Real GDP growth 10.1% % = (Real GDP at t / Real GDP at t-1) - 1 Real GDP per capita growth % = (Real GDP per capita at t / Real GDP per capita at t-1) - 1 Inflation Rate 2.4% % Inflation rate inputted by the user in 'General' sheet Price Index 1.0 Absolute = 1/(1+ inflation rate) Minimum wage is calculated across the projection period using the income brackets set by the user in 'General' sheet, which is then adjusted for real wage growth, inflation % and indexation assumptions for Minimum Wage Amount in 000s 120.0 projecting. Contribution Step 1 27,600.0 Amount in 000s Contribution steps are used only when contribution rates vary by contributor's income brackets. Contribution step 1 represents the lowest income bracket. Contribution Step 2 27,600.0 Amount in 000s Contribution step 2 represents the second lowest income bracket. Contribution Step 3 27,600.0 Amount in 000s Contribution step 3 represents the second highest income bracket. Contribution Step 4 (Ceiling) 27,600.0 Amount in 000s Contribution step 4 represents the highest income bracket. All Employees: Wage Bill 7,491,816.5 Amount in Millions All Employees Wage Bill represents the total unconstraint wage multiplied by count of all employees in the economy. Average Nominal Wage 2,247.0 Amount in 000s All employees Average nominal wage = All employees Wage Bill / Total Employed in the economy Total Wage Bill as % of Nominal GDP 81.4% % The total wage bill is also shown as % of GDP for all employees. Effective Contributors: Unconstrained Wage Bill of Effective contributors. Wage Bill Amount in Millions 1,116,311.0 = Total effective contributors * Total wages paid out Unconstrained Wage Bill of Effective contributors that are male. Wage Bill: male Amount in Millions 771,148.6 = Total effective male contributors * Total wages paid out to males Unconstrained Wage Bill of Effective contributors that are female. Wage Bill: female Amount in Millions 345,162.4 = Total effective female contributors * Total wages paid out to females Average Nominal Wage 2,503.0 Amount in 000s Unconstrained average wage of effective contributors Average Nominal Wage: male 2,526.2 Amount in 000s Unconstrained average wage of effective male contributors Average Nominal Wage: female 2,452.7 Amount in 000s Unconstrained average wage of effective female contributors Real wage growth, projected over time, using average unconstrained wage at time t and t-1, adjusted for inflation %. Real Wage Growth % 7.2% '= [Unconstrained average wage of effective contributors at time t / {Unconstrained average wage of effective contributors [t-1] * (1+inflation%) } ] -1 Percent of Contributors Earning Above the Ceiling % In cases where there the scheme rules specify a wage ceiling to determine the covered/insured wage, this number reflects the % of contributors earning above this specified ceiling. Male % Bifurcated by gender. Female % Bifurcated by gender. Percent of Contributors Earning Minimum Wage 3.3% % Reflects the % of contributors earning the minimum wage. Male 2.4% % Reflects the % of male contributors earning the minimum wage. Female 5.2% % Reflects the % of female contributors earning the minimum wage. Constrained Wage Bill of Effective contributors. Insured Wage Bill Amount in Millions 1,116,311.0 = Total effective contributors * Total wages constrained paid out Constrained Wage Bill of Effective Male contributors. Insured Wage Bill: male Amount in Millions 771,148.6 = Total effective Male contributors * Total constrained wages paid out to males Constrained Wage Bill of Effective female contributors. Insured Wage Bill: female Amount in Millions 345,162.4 = Total effective female contributors * Total constrained wages paid out to females Average Nominal Insured Wage 2,503.0 Amount in 000s = Constrained wage bill / Total effective contributors Average Nominal Insured Wage: male 2,526.2 Amount in 000s = Constrained wage bill of males / Total effective male contributors Average Nominal Insured Wage: female 2,452.7 Amount in 000s = Constrained wage bill of females / Total effective female contributors Average real insured wage growth, projected over time, using average constrained wage at time t and t-1, adjusted for inflation %. Real Insured Wage Growth % 7.2% = [Constrained average wage of effective contributors at time t / {Constrained average wage of effective contributors [t-1] * (1+inflation%) } ] -1 Effective Wage Bill as % of Total Wage Bill 14.9% % = Unconstrained effective contributors wage bill / Total economy-wide wage bill Insured Wage Bill as % of Total Wage Bill 14.9% % = Constrained wage bill / Total economy-wide wage bill Nominal Contributors: Unconstrained Wage Bill of Nominal contributors. Wage Bill Amount in Millions 1,116,311.0 = Total nominal contributors * Total wages paid out Average Nominal Wage 2,503.0 Amount in 000s = Wage bill of Nominal Contributors / Total Nominal Contributors Total Wage Bill as % of Nominal GDP 12.1% % Wage bill of nominal contributors expressed as a % of Nominal GDP Payroll Contributions Due 66,978.6 Amount in Millions Calculated based on the contribution rate for employers and employees expressed in the contribution steps of 'General' sheet. Male 46,268.9 Amount in Millions Bifurcation of contributions due by gender. Female 20,709.7 Amount in Millions Bifurcation of contributions due by gender. Payroll Contributions Collected 66,978.6 Amount in Millions =Contributions due * collection rate (where, collection rate is the rate of collection from employers and employees) Male 46,268.9 Amount in Millions Bifurcation of contributions collected by gender. Female 20,709.7 Amount in Millions Bifurcation of contributions collected by gender. Pension Benefits - Rwanda 2019 2020 and so on… Units Description Minimum Pension is calculated across the projection period using the pension brackets set by the user in 'General' sheet, which is then adjusted for real wage growth, inflation % and indexation Minimum Pension 156.0 171.3 Amount in 000s assumptions for projecting. Maximum Pension is calculated across the projection period using the pension brackets set by the user in 'General' sheet, which is then adjusted for real wage growth, inflation % and indexation Maximum Pension 10,800.0 12,912.3 Amount in 000s assumptions for projecting. New Old age: Male Avg Retirement Age 57.9 Absolute Average retirement age of new old age males Avg Length of Service 23.2 Absolute Average Length of service of new old age males Avg Replacement Rate .0% 52.4% % Avg RR for new male pensioners calculated in terms of economy-wide average unconstrained wage. Pension Wealth in Terms of Average Wage 8.0 Absolute Pension wealth in terms of average wage is the net present value of the promised benefits at the time of retirement in terms of average unconstrained wage in the economy. Percent of Pensioners Receiving Minimum Pension .0% 17.4% % Percent of new male retirees with minimum pension benefits. New Old age: Female Avg Retirement Age 61.4 Absolute Average retirement age of new old age females Avg Length of Service 29.7 Absolute Average Length of service of new old age females Avg Replacement Rate .0% 52.7% % Avg RR for new female pensioners calculated in terms of economy-wide average unconstrained wage. Pension Wealth in Terms of Average Wage 8.0 Absolute Pension wealth in terms of average wage is the net present value of the promised benefits at the time of retirement in terms of average unconstrained wage in the economy. Percent of Pensioners Receiving Minimum Pension .0% 14.3% % Percent of new female retirees with minimum pension benefits. New Disability: Male Note : People who switch from disability to old age program are normally shown as negative new disabled and are excluded from averaging. Avg Retirement Age Absolute Average retirement age of new disabled males Avg Length of Service Absolute Average Length of service of new disabled males Avg Replacement Rate .0% .0% % Avg RR for new male disabled calculated in terms of economy-wide average unconstrained wage. Pension Wealth in Terms of Average Wage Absolute Pension wealth in terms of average wage is the net present value of the promised benefits at the time of retirement in terms of average unconstrained wage in the economy. New Disability: Female Note : People who switch from disability to old age program are normally shown as negative new disabled and are excluded from averaging. Avg Retirement Age Absolute Average retirement age of new disabled females Avg Length of Service Absolute Average Length of service of new disabled females Avg Replacement Rate .0% .0% % Avg RR for new female disabled calculated in terms of economy-wide average unconstrained wage. Pension Wealth in Terms of Average Wage Absolute Pension wealth in terms of average wage is the net present value of the promised benefits at the time of retirement in terms of average unconstrained wage in the economy. Avg Repl Rate for All Existing Beneficiaries Avg RR for existing old age beneficiaries is calculated by first calculating the present value of the annuity benefits and then dividing it by the total existing benficiaries and average economy-wide Avg Repl Rate for Existing Old age 43.7% 43.4% % unconstrained wage. Male 41.9% 41.8% % Bifurcation of avg RR for exisiting old age by gender Female 52.2% 50.3% % Bifurcation of avg RR for exisiting old age by gender Avg RR for existing disability beneficiaries is calculated by first calculating the present value of the annuity benefits and then dividing it by the total existing disabled benficiaries and average economy- Avg Repl Rate for Existing Disability .0% .0% % wide unconstrained wage. Male .0% .0% % Bifurcation of avg RR for exisiting disabled by gender Female .0% .0% % Bifurcation of avg RR for exisiting disabled by gender Avg RR for survivors is calculated by first computing the total pension payment to survivors (determined as weighted average of the indexed pension payments for the survivors in the previous year and Avg Repl Rate for Survivors 8.2% 7.9% % a fraction of the pension payment to a comparable cohort of old age retirees), and dividing it by the total survivors and average economy-wide unconstrained wage. Avg Repl Rate for Orphans .0% .0% % Avg RR for orphans in terms of average wage Percent of Minimum Pension Recipients .0% .0% % Among Old age 15.6% 15.5% % % of old age beneficiaries receiving minimum pension Male 17.1% 16.9% % % of old age males receiving minimum pension Female 8.6% 9.4% % % of old age females receiving minimum pension Total Payments to Old age 20,722.6 24,337.0 Amount in Millions Total annuity and lump sum payments towards old age benefits Annuity Payments 20,722.6 24,337.0 Amount in Millions Total annuity payments are calculated as the present value of the all the future annuity benefits paid out to beneficiaries. Male 16,350.6 19,188.4 Amount in Millions Total annuity payments to males are calculated as the present value of the all the future annuity benefits paid out to male beneficiaries. Female 4,372.0 5,148.6 Amount in Millions Total annuity payments to females are calculated as the present value of the all the future annuity benefits paid out to female beneficiaries. Lump Sum Payments Amount in Millions Calculated as the sum of commuter's lump sum and the lump sum payments to new pensioners Male Amount in Millions Bifurcation of lump sum benefit by gender. Female Amount in Millions Bifurcation of lump sum benefit by gender. Total Payments to Disability Amount in Millions Total annuity payments to disabled are calculated as the present value of the all the future annuity benefits paid out to disabled. Male Amount in Millions Bifurcation of disability benefit by gender. Female Amount in Millions Bifurcation of disability benefit by gender. Total Payments to Survivors 3,300.1 3,647.4 Amount in Millions Total payments to survivors is calculated by using the RR of survivors by multiplying it by the average economy-wide wage and total survivors Total Payments to Orphans Amount in Millions Total payments to orphans is calculated by using the RR of orphans by multiplying it by the average economy-wide wage and total orphans Total Benefit Payments 24,022.7 27,984.4 Amount in Millions Sum total of all the benefits paid out (Old age, Disability, Survivors, orphans) Additional Indicators: Includes indicators like combined replacement rates for male and female new old age pensioners and lump sum payments to disabled, as well as disaggregated intermediate results. Financial Flows & IPD - Rwanda 2019 2020 and so on… Units Description PAYG Total Revenue 95,008 132,924 Amount in Millions PAYG Total revenue = Employer + Employee Contributions + Pensioner Contributions + Govt Contributions and transfers + Other Revenue + Investment Returns Employer and Employee Contributions 66,979 77,433 Amount in Millions Payroll Taxes calculated as contributions due * collection rate from employees and employers Pensioner Contributions Amount in Millions Pensioner contributions, which, if pensions are taxed by the pension system, are computed using collection and contribution rates. Unconditional transfers from the general budget and government contributions on behalf of the contributors, which again are calculated using collection rate and contribution Government Contributions & Transfers Amount in Millions rate from government. Other Revenue Amount in Millions Other pension fund income. Investment revenues that come from investing pension fund assets at the Interest rate earned on PAYG fund reserves. The assets invested in the base year are taken from Investment Returns 28,029 55,491 Amount in Millions input file PAYG Total Expenditure 28,450 33,118 Amount in Millions PAYG Total Expenditure = Pension Payments + Other Payments + Administrative Costs + Cost of Assets Management/Interest Payments Pension Payments 24,023 27,984 Amount in Millions All Pension payments towards old age, disability, survivors, orphans. Inclusive of lumpsum payments. Other Payments 1,700 1,981 Amount in Millions Any expenses modelled as other payments. Administrative Costs 2,727 3,153 Amount in Millions Administrative costs calculated as % of contribution revenue (i.e. % of Employer employee contributions + Pensioner contributions). Cost of Assets Management / Interest Payments Amount in Millions Costs of asset management calculated on reserves. The assets on which these costs are incurred in the base year are taken from input file. PAYG Current Balance 66,558 99,806 Amount in Millions PAYG Current Balance = PAYG Total Revenue - PAYG Total Expenditure PAYG Reserve (Explicit PAYG Debt) 468,382 568,189 Amount in Millions PAYG Reserve (Explicit PAYG Debt) = PAYG Current Banalce + Reserve fund at (t - 1) PAYG Implicit Debt 4,876,236 5,809,200 Amount in Millions PAYG Implicit Debt = Debt to current nominal contributors + Debt to existing old age beneficiaries + Debt to existing disabled + Debt to survivors + Debt to Orphans Total PAYG Debt 4,407,853 5,241,011 Amount in Millions Total PAYG Debt = Implicit Pension Debt - Reseve at base year 1) Obligations = Government contributions and transfers at t - PAYG Reserve at t-1 - PAYG Current Balance at t , if PAYG Reserve at t-1 + PAYG Current Balance < 0 and New Government Obligations (Cash Flow) Amount in Millions the pension fund is not allowed to borrow 2) Obligations = Government contributions and transfers at t, otherwise Accumulated Government Debt Amount in Millions Accumulation of New Government obligations, adjusted for inflation % and Government bond rate % Consolidated PAYG & Government Debt 4,407,853.0 5,241,011.0 Amount in Millions Consolidated PAYG & Government Debt = Governement Debt + PAYG Debt As % of GDP PAYG Total Revenue 1.0% 1.3% % PAYG Total Revenue expressed as % of Nominal GDP PAYG Total Expenditure .3% .3% % PAYG Total Expenditure expressed as % of Nominal GDP PAYG Current Balance .7% 1.0% % PAYG Current Balance expressed as % of Nominal GDP PAYG Reserve (Explicit PAYG Debt) 5.1% 5.6% % PAYG Reserve (Explicit PAYG Debt) expressed as % of Nominal GDP Total PAYG Debt (Implicit & Explicit) 47.9% 51.5% % Total PAYG Debt (Implicit & Explicit) expressed as % of Nominal GDP Consolidated PAYG & Government Debt 47.9% 51.5% % Consolidated PAYG & Government Debt expressed as % of Nominal GDP As % of Covered Wage Bill PAYG Total Revenue 8.5% 10.3% % PAYG Total Revenue expressed as % of Covered Wage Bill of Effective Contributors PAYG Total Expenditure 2.5% 2.6% % PAYG Total Expenditure expressed as % of Covered Wage Bill of Effective Contributors PAYG Current Balance 6.0% 7.7% % PAYG Current Balance expressed as % of Covered Wage Bill of Effective Contributors PAYG Reserve (Explicit PAYG Debt) 42.0% 44.0% % PAYG Reserve (Explicit PAYG Debt) expressed as % of Covered Wage Bill of Effective Contributors Total PAYG Debt (Implicit & Explicit) 394.9% 406.1% % Total PAYG Debt (Implicit & Explicit) expressed as % of Covered Wage Bill of Effective Contributors Consolidated PAYG & Government Debt 394.9% 406.1% % Consolidated PAYG & Government Debt expressed as % of Covered Wage Bill of Effective Contributors Net Present Value PAYG Total Revenue 95,007.8 120,722.7 Amount in Millions Net Present Value of PAYG Total Revenue adjusted for discount rate % and inflation % PAYG Total Expenditure 28,450.3 30,078.0 Amount in Millions Net Present Value of PAYG Total Expenditure adjusted for discount rate % and inflation % PAYG Current Balance 66,557.6 90,644.6 Amount in Millions Net Present Value of PAYG Current Balance adjusted for discount rate % and inflation % PAYG Reserve (Explicit PAYG Debt) 468,382.4 516,033.0 Amount in Millions Net Present Value of PAYG Reserve (Explicit PAYG Debt) adjusted for discount rate % and inflation % Total PAYG Debt (Implicit & Explicit) 4,407,853.0 4,759,925.0 Amount in Millions Net Present Value of Total PAYG Debt (Implicit & Explicit) adjusted for discount rate % and inflation % Consolidated PAYG & Government Debt 4,407,853.0 4,759,925.0 Amount in Millions Net Present Value of Consolidated PAYG & Government Debt adjusted for discount rate % and inflation % Contribution Rate from Employees and Employers Average Collected 6.0% 6.0% % = Contributions collected / Unconstrained Wage Bill of effective contributors Contributions rate required to balance the fund each year, which PROST calculates recursively by gradually raising statutory contributions from a very small fraction of the Required to Balance Fund from Base to Current Year .1% 1.4% % unconstraint wage bill and until the revenues of the system just exceed the expenditures in each year of simulations. Summary:Multipillar System - Rwanda 2019 2020 and so on.. Units Description 01 Total Population 12,626.9 12,902.0 Count in 000s Calculates the total population of the country using current population of the country, fertility rates and mortality rates assumptions input by user. 02 Population Growth Rate 2.2% % Total population growth calculated using total population projections. 03 Share of People above Ret. Age in Population 5.0% 5.2% % % of people in the population above the retirement age specified by the user 04 Old Age Population Dependence 9.0 9.3 Absolute Old age population dependency is defined as the number of old age individuals per every 100 people of working age. 05 Life Expectancy at Birth: Male 66.2 66.2 Absolute Life expectancy at birth for males 06 Life Expectancy at Birth: Female 70.5 70.5 Absolute Life expectancy at birth for females 07 Life Expectancy at Retirement: Male 17.9 17.9 Absolute Life expectancy at retirement for males 08 Life Expectancy at Retirement: Female 19.5 19.5 Absolute Life expectancy at retirement for females 09 Total Employment 3,334.2 3,438.4 Count in 000s Total employment is calculated as the unemployment rate deducted labor force (using labor force participation rates, usually from sources like the ILO) =Nominal Contributors(M+F) * (100% - Exemption %). When there are rules in place in the scheme for those exempted from contributing, eg. Military, then effective contributors tells us the 10 Total Effective Contributors 446.0 480.9 Count in 000s actual number of contributors, net of those exempted. This number will be equal to "Nominal Contributors" if there are no such rules in place. 11 Total Beneficiaries 34.9 38.2 Count in 000s Sum total of all beneficiaries (Old age + Disability + Survivors + Orphans) Existing Old age Pensioner's count can be calculated in 2 ways (based on the method chosen in 'General' sheet): Method 1): Existing Old age Pensioners at time t and age a = Population at time t and age a * Retirement rate, (where Retirement rate = percent of all old age pensioners of age a in the total 12 Old age 18.9 20.9 Count in 000s population of age a) Method 2): Existing Old age Pensioners at time t and age a = Exisitng Old age pensioners at age a-1 and time t-1 + New Pensioners at time t and age a - Dead Pensioners at age a and time t Existing Disability count can be calculated in 2 ways (based on the method chosen in 'General' sheet): 13 Disability Count in 000s Method 1): Existing Disabled at time t and age a = Population at time t and age a * Disability rate, (where Disability rate = percent of all disabled of age a in the total population of age a) Method 2): Existing Disabled at time t and age a = Exisitng Disabled at age a-1 and time t-1 + New Disabled at time t and age a - Dead Disabled at age a and time t 14 Survivors 16.0 17.3 Count in 000s = Total Survivors [t-1] * (Total Nominal Contributors [t] + Total Effective Pensioners [t]) / (Total Nominal Contributors [t-1] + Total Effective Pensioners [t-1]) 15 Orphans Count in 000s = Total Orphans [t-1] * (Total Nominal Contributors [t] + Total Effective Pensioners [t]) / (Total Nominal Contributors [t-1] + Total Effective Pensioners [t-1]) 16 Old age-Effective Contributors Ratio 4.2 4.3 Absolute Number of Old age pensioners per 100 effective contributors 17 Total Beneficiaries-Effective Contributors Ratio 7.8 7.9 Absolute Number of total beneficiaries per 100 effective contributors 18 Nominal GDP 9,199,000.0 10,177,912.0 Amount in Millions Nominal GDP of the economy, inputted by the user in 'General' sheet Minimum wage is calculated across the projection period using the income brackets set by the user in 'General' sheet, which is then adjusted for real wage growth, inflation % and indexation 19 Minimum Wage 120.0 131.7 Amount in 000s assumptions for projecting. 20 Percent of Contributors Earning Minimum Wage 3.3% 3.5% % Reflects the % of contributors earning the minimum wage. 21 Contribution Ceiling 27,600.0 30,299.1 Amount in 000s Contribution ceiling, if any defined by the user as per the scheme rules. In cases where there the scheme rules specify a wage ceiling to determine the covered/insured wage, this number reflects the % of contributors earning above this specified ceiling. If there is 22 Percent of Contributors Earning Above the Ceiling % no ceiling in place, this value is blank. 23 Total Wage Bill as % of Nominal GDP 81.4% 81.8% % Wage bill of nominal contributors expressed as a % of Nominal GDP 24 Average Nominal Insured Wage 2,503.0 2,683.4 Amount in 000s = Constrained wage bill / Total effective contributors Average real insured wage growth, projected over time, using average constrained wage at time t and t-1, adjusted for inflation %. 25 Real Insured Wage Growth 7.2% .3% % = [Constrained average wage of effective contributors at time t / {Constrained average wage of effective contributors [t-1] * (1+inflation%) } ] -1 Avg RR for existing old age beneficiaries is calculated by first calculating the present value of the annuity benefits and then dividing it by the total existing benficiaries and average economy- 26 Average Replacement Rate Among Existing Old Age Pensioners 43.7% 43.4% % wide unconstrained wage. 27 Total PAYG Revenue 95,007.8 132,924.1 Amount in Millions PAYG Total revenue = Employer + Employee Contributions + Pensioner Contributions + Govt Contributions and transfers + Other Revenue + Investment Returns 28 Employer & Employee Contributions 66,978.6 77,432.9 Amount in Millions Payroll Taxes calculated as contributions due * collection rate from employees and employers 29 Total PAYG Expenditure 28,450.3 33,118.0 Amount in Millions PAYG Total Expenditure = Pension Payments + Other Payments + Administrative Costs + Cost of Assets Management/Interest Payments 30 Total Pension Payments 24,022.7 27,984.4 Amount in Millions All Pension payments towards old age, disability, survivors, orphans. Inclusive of lumpsum payments. 31 Pension Payments for Old Age Pensioners 20,722.6 24,337.0 Amount in Millions Total annuity and lump sum payments towards old age benefits 32 PAYG Current Account Balance 66,557.6 99,806.1 Amount in Millions PAYG Current Balance = PAYG Total Revenue - PAYG Total Expenditure 33 PAYG Fund Reserve (Explicit Debt) 468,382.4 568,188.5 Amount in Millions PAYG Reserve (Explicit PAYG Debt) = PAYG Current Banalce + Reserve fund at (t - 1) 34 Implicit Pension Debt to Contributors 4,603,375.5 5,472,742.0 Amount in Millions Debt to current nominal contributors 35 Implicit Pension Debt 4,876,235.5 5,809,199.5 Amount in Millions PAYG Implicit Debt = Debt to current nominal contributors + Debt to existing old age beneficiaries + Debt to existing disabled + Debt to survivors + Debt to Orphans 36 Total PAYG Debt (Implicit and Explicit) 4,407,853.0 5,241,011.0 Amount in Millions Total PAYG Debt = Implicit Pension Debt - Reseve at base year 37 Consolidated Government and PAYG Debt 4,407,853.0 5,241,011.0 Amount in Millions Consolidated PAYG & Government Debt = Governement Debt + PAYG Debt 38 PAYG Current Account Balance as % of GDP .7% 1.0% % PAYG Current Balance expressed as % of Nominal GDP 39 Total PAYG Debt (Implicit and Explicit) as % of GDP 47.9% 51.5% % Total PAYG Debt (Implicit & Explicit) expressed as % of Nominal GDP 40 Consolidated Government and PAYG Debt as % of GDP 47.9% 51.5% % Consolidated PAYG & Government Debt expressed as % of Nominal GDP 41 PAYG Current Account Balance as % of Covered Wage Bill 6.0% 7.7% % PAYG Current Balance expressed as % of Covered Wage Bill of Effective Contributors 42 Total PAYG Debt (Implicit and Explicit) as % of Covered Wage Bill 394.9% 406.1% % Total PAYG Debt (Implicit & Explicit) expressed as % of Covered Wage Bill of Effective Contributors 43 Consolidated Government and PAYG Debt as % of Covered Wage Bill 394.9% 406.1% % Consolidated PAYG & Government Debt expressed as % of Covered Wage Bill of Effective Contributors 44 Present Value of PAYG Current Account Balance 66,557.6 90,644.6 Amount in Millions Net Present Value of PAYG Current Balance adjusted for discount rate % and inflation % 45 Present Value of Total PAYG Debt (Implicit and Explicit) 4,407,853.0 4,759,925.0 Amount in Millions Net Present Value of Total PAYG Debt (Implicit & Explicit) adjusted for discount rate % and inflation % 46 Present Value of Consolidated Government and PAYG Debt 4,407,853.0 4,759,925.0 Amount in Millions Net Present Value of Consolidated PAYG & Government Debt adjusted for discount rate % and inflation %