"European Union (EU) Member States have very diverse social security pension systems with respect to the types of schemes/benefits offered, their redistributive features, as well as the method and sources of financing adopted. Also, the role of the state in securing retirement in old age varies considerably across the EU. According to the European System of National and Regional Accounts 2010 framework, the pension obligations of EU social security pension schemes are now reported in the supplementary Table 29, based on the accrued‐to‐date liability method. Such a method does not allow the assessment of the financial sustainability of social security schemes, which are typically financed on a pay‐as‐you‐go/partially funded basis, as well as the sustainability of public finances. In addition, while contributory social security pension schemes, with or without non‐contributory components, are included in Table 29, non‐contributory social security schemes are in principle excluded. This article aims to suggest how to enhance the transparency and cross‐country comparability of Table 29 results at EU level, by disclosing additional information suitable for evaluating the financial status of contributory social security pension schemes, which would take into account not only the financing method adopted but also the type of benefits offered. From a policy perspective, such additional information would ensure that no certain types of social security schemes are promoted in the EU, and that the clarity and effectiveness of the role of the state in financing a social security pension scheme is enhanced."

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