Fundusz Rezerwy Demograficznej – analiza działalności oraz konsekwencje przedterminowego wykorzystania aktywów

2013 ◽  
pp. 101-123
Author(s):  
Joanna Rutecka
Keyword(s):  
Baby Boomers ◽  
Old Age ◽  
Pension System ◽  
Additional Source ◽  
Rates Of Return ◽  
Basic Principles ◽  
Significant Deficit ◽  
Reserve Fund ◽  
Pension Benefits ◽  
Portfolio Structure

Demographic Reserve Fund (FRD) has been created in Poland in 2002 to offer additional source of financing for old-age pension system in case it faces significant deficit resulting from demographic reasons. This buffer fund aims mainly at balancing the incomes and expenditures of pension system in times when baby boomers will be offered old-age pension benefits. The main sources of its financing were defined as pension contributions and revenues from privatization of state owned companies. But after several years of its activity it has turned out that the operations of the fund came in contradiction with its main goals, mainly due to early usage of its assets. The article presents main characteristics of Polish Demographic Reserve Fund, basic principles of its functioning, portfolio structure and rates of return. Moreover, it tries to give some opinion in hot debate about the purposes and effects of accumulating assets in pension reserve funds in times of budget shortages. 

De pensioenbescherming van flexibele werknemers in België

2006 ◽  
Vol 22 (2) ◽  
Author(s):  
Annelies Debels ◽  
Hans Peeters ◽  
Gert Verschraegen ◽  
Jos Berghman
Keyword(s):  
Statistical Analysis ◽  
Old Age ◽  
Pension System ◽  
Panel Study ◽  
Research Strategy ◽  
The Third ◽  
Temporal Flexibility ◽  
Part Time ◽  
Coordinated Regulation ◽  
Pension Benefits

Old age protection of flexible workers in Belgium Old age protection of flexible workers in Belgium This article investigates to what extent the Belgian pension system is adapted to the proliferation of a-typical forms of employment. Are there any differences between the old age protection of flexible and non-flexible workers? What are the effects of flexible employment on participation in the three pension pillars and on the level of pension benefits? To answer these questions, the article pursues a double research strategy: an analysis of Belgian legislation and relevant collective labour agreements is complemented with a statistical analysis on the Panel Study of Belgian Households (PSBH). The analyses show that part-time employment results in a lower pension, while other forms of temporal flexibility such as temporary leave arrangements and temporary unemployment do not. In the second pillar we find that contractual and transitional flexible workers are discriminated. Finally, the results indicate that flexible workers do not compensate for lower pension protection through increased participation in the third pension pillar. Our findings suggest that a re-assessment of the system of ‘assimilated’ periods is required, as well as the development of a system of coordinated regulation for the three pension pillars.

scholarly journals Standardization of implementation of the mandatory privately managed pillar of the pension system of Ukraine

2021 ◽  
Vol 2021 (2) ◽  
pp. 114-130
Author(s):  
Anastasiia SVIRIDOVSKA ◽  
Keyword(s):  
Single Mothers ◽  
Old Age ◽  
Chernobyl Accident ◽  
Pension System ◽  
Real Effect ◽  
The Third ◽  
The World ◽  
Legislative Changes ◽  
State Pension ◽  
Pension Benefits

According to the current legislation, the modern Ukrainian pension system is not yet fully formed. In Ukraine, PFC contributions currently form a source of pension benefits for citizens. The solidarity pension system is crumbling . That is, as in the rest of the world, the nation is aging, the share of retirees is growing, and there is less able-bodied population. The search for new ways to save for old age is in the direction of creating a mandatory accumulation under the supervision of the state. Thus, today, a second level of the pension system, mandatory accumulative component, and a rather underdeveloped and unpopular non-state pension system, which forms the third level of the national pension system, do not function. However, in 2020, the work on the concept and bill on the mandatory savings system was intensified. Its introduction is seen as a tool that can increase both the level of pensions and their differentiation. But the world experience of such reforms shows that the real effect on payments from the savings system will have to wait at least 15-20 or even 25 years. The article examines the issue of introducing a funded pension level at the legislative level. According to the results of an expanded analysis of 19 draft laws on reforming the current pension legislation and proposals for new laws on these issues in the period from 2018 to 2021, we can conclude that there is no single concept of amending legislation, so most bills are either withdrawn or sent for further refinement. Currently, various aspects of the pension system of Ukraine are regulated by a large number of legislative acts, so there are signs of dispersion in these draft legislative changes. Most of the bills are developed to enhance the welfare of certain categories of citizens, including servicemen, single mothers, victims of the Chernobyl accident, war veterans and more. The issues of the accumulative pension system are mainly raised in the bills of 2020–2021.

scholarly journals Public Pension Generosity and Old-Age Poverty in OECD countries

2021 ◽  
pp. 1-20
Author(s):  
KATI KUITTO ◽  
JOAN E. MADIA ◽  
FEDERICO PODESTÀ
Keyword(s):  
Old Age ◽  
Pension System ◽  
Welfare States ◽  
Public Pension ◽  
Variable Approach ◽  
Working Age ◽  
Old Age Poverty ◽  
Pension Benefits ◽  
The Relationship

Abstract Pension adequacy is gaining importance as old-age poverty remains a pressing problem. In many advanced welfare states, the population is ageing rapidly and recent pension reforms have led to cuts in public pension provision. There are, however, few comparative longitudinal studies on the relationship between pension generosity and old-age poverty. This study provides a comparative empirical assessment of how the prevalence and depth of old-age poverty relates to generosity of public pension benefits in 14 advanced OECD welfare states from 1980-2010. We focus on the role of mandatory public pension provision of mainly first tier schemes that grant the major share of retirees’ income in most countries. We use data on theoretical pension replacement rates for retirees who had different working-age incomes. In order to address endogeneity issues, we adopt an instrumental-variable approach. Our main finding shows that pensions systems and earnings-related schemes, in particular, are quite efficient in reducing the risk of old-age poverty. Yet they still do very little to alleviate poverty among those pensioners in the most disadvantaged situations. We also found that redistribution within the pension system does not substantially contribute to poverty alleviation.

scholarly journals Principles of Construction and Mathematical Models of the Formation of a Solidarity Fund in an Alternative Old-Age Pension System

2021 ◽  
Vol 12 (4) ◽  
Author(s):  
Sergey Ovanesyan
Keyword(s):  
Mathematical Models ◽  
Old Age ◽  
Work Experience ◽  
Pension System ◽  
Minimum Length ◽  
Length Of Service ◽  
Basic Principles ◽  
Solidarity Fund ◽  
Calculation System ◽  
The Right

The basic principles of the formation of a solidary fund in the suggested old-age pension system are to establish the minimum length of service according to which a citizen has the right to an old-age pension, the implementation into the pension calculation system of the indicator "share deducted to a solidary fund" from each transfer to the personal account of the employee, so that by retirement at the age of 60 and working experience of 38 years, the pension amount was exactly equal to the amount of wages used in calculations. With a decrease in the length of service, the pension amount is reduced according to a certain rule. To implement these principles, appropriate mathematical models have been built that allow to calculate the amount of accumulated pension capital, own pension, accumulated amounts in the solidary fund, the total amount in the pension fund, etc., with any work experience, the amount of wages. Complex calculations were performed using the parameters that have developed in the practice of today. The results of the calculations are presented in tables with the corresponding comments.

Old Age Pensions

2018 ◽  
Author(s):  
Pierre Pestieau ◽  
Mathieu Lefebvre
Keyword(s):  
Old Age ◽  
Pension System ◽  
Labour Force ◽  
Labour Force Participation ◽  
Population Ageing ◽  
Pension Systems ◽  
Demographic Challenges ◽  
Old Age Poverty ◽  
Future Outcomes ◽  
Social Security Benefits

This chapter gives an overview of the type of pension system existing in Europe. Contributive and redistributive systems are opposed but the chapter shows that pension systems are more often a mix of both. The chapter shows how these systems have been more or less effective in tackling old age poverty in most countries and it points to the main challenges that these systems are facing, namely population ageing and low labour-force participation. The major reforms that have been implemented to ensure future sustainability of pension systems are presented but a number of additional changes that should be implemented are discussed. The chapter also presents projections for future outcomes and the link between demographic challenges and social security benefits is highlighted.

Social security, income inequality and growth

2011 ◽  
Vol 11 (1) ◽  
pp. 53-70 ◽  
Author(s):  
GILLES LE GARREC
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Low Income ◽  
Pension System ◽  
Industrial Countries ◽  
Lifetime Income ◽  
Actuarial Fairness ◽  
Retirement Systems ◽  
Pension Benefits ◽  
Shed Light

AbstractIn most industrial countries, public pension systems redistribute from workers to retired people, not from high-income to low-income earners. They are close actuarial fairness. However, they are not all equivalent. In particular, some pension benefits are linked to full lifetime average earnings, while others are only linked to partial earnings history. In the latter case, we then show in this article that an actuarially fair pay-as-you-go pension system can both reduce lifetime income inequality and enhance economic growth. We also shed light on the dilemma between inequality and economic growth in retirement systems: greater progressivity results in less lifetime inequlity but also less growth.

The transition to a multi-pillar pension system: the inherent socio-economic anomaly

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ishay Wolf ◽  
Jose Maria Caridad y Ocerin
Keyword(s):  
Income Inequality ◽  
Old Age ◽  
Pension System ◽  
Economic Loss ◽  
Pension Scheme ◽  
Total Contribution ◽  
Content Type ◽  
Pension Systems ◽  
High Earning ◽  
Minimum Pension

Purpose This paper aims to analytically show that in an over-lapping-generation (OLG) model, low earning cohorts bear unwanted risk and absorb higher economic cost than high earning cohorts do. Design/methodology/approach This paper aims to consider the individual's risk appetite, using a simple utility function, based on consumptions and discount rates in each period. This paper calibrates the model according to teh Israeli pension system as a representative of a small open developed organization for economic cooperation and development country. Israel is considered as unique case study in the pension landscape, as it implements almost pure defined contribution pension scheme with continuous trend of pension market capitalization (Giorno and Jacques, 2016). Hence, this study finds Israel suitable for examining the theoretical mix of pension scheme. That model enables exploring combined solutions for adequate old age benefits, involving the first and the second pension pillars, under fiscal constraints. Findings It comes out that for risk-averse individuals, the optimal degree of funding is negatively correlated to asset returns' volatility and positively correlated to earning decile level. The neglect of risk and individual's current earning level will thus overstate the contribution level and funded percentage from total contributions. Moreover, even in an economy with minimum government intervention, and highly developed private pension fund with high average of rate of return, the authors find it is optimal that the pension system contains a sizeable unfunded pillar. This paper innovates by revealing a socio-economic anomaly in design of mix pension systems in favor of high earning cohorts on the expense of economic loss of low earning cohorts. Practical implications The model presented in this paper could be implemented in countries with mix pension systems, as an alternative to public social transfers or means tested, alleviating poverty and inequality in old age. Additionally, this model could raise the public awareness of the financial sustainability of the unfunded pay-as-you-go pillar to diversify financial risk in pension systems, especially for low earning cohort in society. Social implications One area of research that is particularly relevant in this context concerns the issue of alleviating poverty and income inequality. It is often stressed that the prevention of old age poverty is among the central targets of well-designed pension system (Holzmann and Hinz, 2005). The conceptualization of minimum pension guarantee used in this composition allows to clearly capturing the notion of such a poverty and social targets as an integral part of the pension system rolls. Originality/value This paper innovates by revealing a socio-economic anomaly in design of mix pension systems in favor of high earning cohorts on the expense of economic loss of low earning cohorts. That comes to realize through the level of total contribution rates and funded share that are generally optimal for high earning cohorts but not for low earning cohorts. This paper identifies that the effect of anomaly is most significant in a market characterized with high income-inequality level. This paper finds that imposing intra-generational risk sharing instrument in the form of minimum pension guarantee can re-balance pension design among different earning cohorts. This solution demonstrates balancing effect on the entire economy.

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