A State‐centred Explanation of the Finance‐Pension Nexus: New Zealand's Pension Reforms as a Typical Case

Abstract

This study analyses the decision-making processes that led to the introduction of the New Zealand Superannuation Fund (a public pension reserve and investment fund), as well as the KiwiSaver Scheme, which is New Zealand's first soft-compulsory private pension scheme. Why and how are governments engaged in the development of funded pensions? These are the questions this study addresses. In analyzing the finance-pension nexus in New Zealand, this article adopts a statecentric approach. It argues that pension funding reforms are shaped by state officials who pursue their own motives because policymakers frame funded pensions as an instrument for achieving broader fiscal, economic and financial policy outcomes. Because New Zealand is a typical case of a state-centric explanation, a study of its pension funding reforms helps in finding causal links between finance and pensions.

Beyond coverage: the politics of occupational pensions and the role of trade unions. Introduction to special issue

“…In our Serbian case study, Altiparmakov and Matković look at state regulations restricting pension funds from investing internationally, with a view to stimulating domestic growth. This fits in with recent research into the fiscal and economic motivations of governments in fostering private pensions (Trampusch, 2017). Whatever the case, decisions must be made on who should manage these funds, the kind of risk and ethical profile to be taken, and so on.…”

Modelos de financiarización de las pensiones en cuatro estados de bienestar europeos

“…Liberal market economies, such as the United Kingdom, are characterized by strong institutional complementarities between the welfare state and the financial system (Hall and Soskice 2001:18). In these countries, funded pension schemes do not only provide asset-based welfare, but also serve as an important investor base for highly developed financial markets (Trampusch, 2018). In the two coordinated political economies with mature pension systems (Sweden and the Netherlands), funded pensions have traditionally served as an important source of patient capital.…”

Insuring individuals … and politicians: financial services providers, stock market risk and the politics of private pension guarantees in Germany

“…While most literature would assume that politicians' choices are purely determined by social policy concerns about the allocation of risks and costs, an approach that takes into account the welfare-finance nexus implies that politicians also weigh up the impact of pension plan regulations on the financial system. This is not only because financial services providers who defend specific regulations may deploy arguments revolving around this financial dimension, but also because financial markets have often been high on politicians' agenda (Trampusch 2018). In the post-1970s context of deindustrialisation and globalisation, many governments have sought to stimulate the development of domestic capital -especially equitymarkets in order to allow more firms to tap into them to expand their activities.…”