Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

For further understanding of the study, the researchers made use of different reading

materials related to the online system. These materials such as books, magazines,

newspapers, thesis and other web articles are essential in broadening the knowledge of the

researchers. These will also guide the researchers to achieve their target objectives by

getting ideas on other related studies and make improvements as possible.

The information gathered by the researchers focuses on the development of the Social

Security System here in the Philippines also in other countries and its advantages to the

people who joined to this social security, and also in the economy.

Foreign Literature:

Elizabeth Kreitler Kirkpatrick (2014) in her book,(The Retirement Test: An

International Study) discussed that more than 100 countries, it was found that over 80

percent of Social Security systems have retirement test provisions. The number has been

increasing. She suggested that it should have different systems that help them to improve

their lives. These four systems also known as Social insurance systems, Universal pension

systems, Provident funds and Social assistance system.

Under the social insurance systems of West Germany and France, a beneficiary of

a regular old age pension is permitted to continue working regardless of the number of

hours or the amount of earnings without a loss or reduction of his benefits. In France, the

original social insurance benefit was small. The present system, set up in 1930. For most of

these years it was not possible to receive a full pension. Since a reduced pension was not

adequate to the retirement needs of beneficiaries.

Milbel, Paul (1963) in his book (Income Security, Retirement, and Pension Deduction

Rules) discussed that many proposals have been made in the last decade calling for further
liberalization and in many cases for the abolition of the retirement test. It is estimated,

however, that if the retirement test had been removed it would have cost the old-age and

survivors insurance trust fund. Since foreign developments in the social insurance field

often provide a perspective for alternative solutions to domestic problems, research

interest has turned to the international scene particularly to the European countries with

their mature social security systems.

Douglas Paul (1936) in his book (Social Security In United States) discussed that

some form of retirement test exists in more than 80 percent of the countries studied.

The extent of withdrawal from the labor force that is required as a condition for receipt

of a pension generally lessens with the age of the country’s system and the degree of the

economy’s development. By and large, the developing countries with primarily agricultural

economies and relatively new pension systems or provident funds require total withdrawal

from covered employment.

In other countries like European countries, they are industrialized economy and

have enough budget to their Social Security System. Pensioners like senior citizens to

their countries are assure that even they are retired for their daily works, their pensions

will give them full. For instance, David, Alvin M. (1964) in his article (Problems of

Retirement Age and Related Condition of Receipt of Old-Age Benefits) discussed that

in Norway, The pension and earnings combined may not exceed 80 percent of past earnings.

The individual, however, may determine the percentage of his pension that he wishes to

receive, thereby giving him greater flexibility in determining how much he can earn

without loss of the old-age pension. Between age 67 and age 70, the insured person can

choose to draw a full pension.

Local Literature:
This opportunity of the Senior citizen that will have assurance that when they exceed the

retirement period they are sure they have receive such privileges like these benefits.