02043cas a2200241 a 4500 AALejournalIMF019324 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498314589 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. European Dept. Luxembourg : Selected Issues. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (15 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Selected Issues paper studies the fiscal and macroeconomic impact of different reform options. It analyzes the impact of an increase in the contribution rate, a reduction of benefits, and an increase in the retirement age. Although all reform options can lead to the fiscal sustainability of the system, there are important macroeconomic trade-offs among them. Although the Luxembourg's pension system is sound over the near term, further reforms are needed to ensure its long-term sustainability. This paper explored the fiscal and macroeconomic impact of several reform options: an increase in the contribution rate, a reduction of benefits, and an increase in the retirement age. Although all these reforms would help ensuring fiscal long-term sustainability, there are important macroeconomic trade-offs. Even though an increase in contribution rates can be implemented immediately, it introduces distortions in the labor market which lead to a decline in GDP in addition to a decline in consumption. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2019/131 Full text available on IMF http://elibrary.imf.org/view/journals/002/2019/131/002.2019.issue-131-en.xml IMF e-Library