High (low) income earners are defined as having earnings 50% above (below) the national average. The Geneva Papers, 34, The International Association for the Study of Insurance Economics. Replacement rates are computed using the OECD pension models and refer to workers entering the labour market in 2008. The calculations are based on national parameters and rules applying in 2008 and include the effects of pension reforms already legislated and that will be phased in over time. The gross replacement rate is computed as the ratio between gross pension entitlements and the average of life-time gross pre-retirement earnings (revalued in line with economy-wide earnings).