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MIDAS, the dynamic microsimulation model that focuses on the social sustainability of pensions, has undergone a major revision in recent years to improve the validity of the projections. This Working Paper not only reports on this revision, but also describes some important new modules.
The Knowledge Centre on Pensions was established by the Act of 21 May 2015. It gathers knowledge on pensions that is available in the various administrations, public institutions and public agencies.
The same Act also established a steering committee to gather knowledge on pensions and coordinate work. The FPB has a representative on that committee and provides the secretariat.
The Knowledge Centre provides technical assistance to the National Pension Committee, and the ministers in charge of pensions. In addition, the Knowledge Centre is in charge of assessing, mainly from a budgetary point of view, of decided reforms. At the request of its interlocutors, it also evaluates proposals of measures and reforms.
The budgetary impact of (proposals for) pension reforms is assessed using the MALTESE model (with the peripheral models PENSION, MOSES and PUBLIC respectively for the pensions of the employees' scheme, the self-employed scheme and the public sector scheme) (see Financial evolution of social protection).
The social impact of (future) pension reforms is simulated and analysed using the MIDAS model (see Income distribution and poverty) and the EXPEDITION model (see Income distribution and poverty), including more specifically the REPLICA model which focuses on pensions.