Information on data

Enhanced reporting on pensions is a feature of the current international accounting standards – the system of national accounts (SNA 2008) and the European system of accounts (ESA 2010). 

The framework of a supplementary pension table on accrued-to-date pension entitlements is particularly important in an ageing society where comprehensive pension information is essential. 

At the same time, it should be noted that accrued-to-date pension entitlements in social insurance are not a measure of the sustainability of public finances and are not part of government debt. 

National accountants focus on already earned (accrued-to-date) pension entitlements. The Economic Policy Committee (EPC) examines the effect of ageing on European societies from in a wider perspective. 

The EPC'S ageing report also combines estimates for entitlements accruing in the future, including expenditure on health care and long-term care, indicating the long-term sustainability of public finances.

Enhanced reporting on pensions

The European system of accounts (ESA 95) only recognised pension obligations on the balance sheet for funded schemes. Unfunded employer schemes did not result in liability recognition for the employer. 

ESA 2010 includes all employment-related pension entitlements outside general government in its core accounts, regardless of whether the schemes are funded or not. Moreover, the supplementary table on pensions shows all accrued-to-date social insurance pension entitlements, including unfunded government pension schemes and social security pensions.

Data transmission schedule

Since 2018, EU members are required to send the supplementary table on pensions to Eurostat. 

Actuarial assumptions and sensitivity analyses

The results of actuarial calculations on pension entitlements depend largely on the underlying assumptions. The existing sensitivity analyses on the most important parameter, the discount rate, clearly show this. 

Therefore, a harmonised and coordinated approach is essential to ensuring comparable results. Statisticians and experts working on ageing populations will regularly review the key assumptions to maintain consistency and cross-country comparability.

National information on pensions systems complement the information requested by ESA 2010. 

It should be noted that national publications do not always follow the format of the supplementary table. Also, key economic parameters and valuation procedures may differ from the European technical compilation guide for pension data in national accounts recommendations.