What steering rules for a defined return pension system?

Summary This study aims to simulate a pension system based on points, with a view to the reform in preparation aiming at the introduction of a universal points-based system. The objective of this report is to focus on the definition of the rules for steering the system. In particular, what are the golden rules of the system that should be the subject of strong commitments by the legislator to guarantee pension rights? To what extent can part of the steering be subject to more flexible decisions, as the system evolves? The methodology of this work is based on a theoretical analysis and the simulation of demographic and economic shocks in order to study the consequences for the sustainability of the system and the level of pensions of different steering rules. It involves subjecting the pension system to stress tests, similar to the banking stress tests simulated by central banks.