Pensions at the Time of Recession. The Case of Lithuania

2011 ◽  
Vol 57 (3) ◽  
pp. 251-266 ◽  
Author(s):  
Teodoras Medaiskis
Keyword(s):  
Private Sector ◽  
Social Insurance ◽  
Pension System ◽  
Social Insurance System ◽  
High Unemployment ◽  
Insurance System ◽  
The Social ◽  
Reserve Fund ◽  
The Government ◽  
Deep Recession

In 2009, Lithuania suffered very deep recession. The fall in GDP by 15 %, high unemployment, and decreased population earnings all affected the pensions system. Before the recession struck, social insurance expenditures had increased considerably and the reserve fund had been exhausted. The recession resulted in the decreased income of the social insurance system and state. While in 2009, the government attempted to maintain the level of pensions, by 2010, it was forced to cut benefits. This shocking decision raised awareness about some theoretical problems concerning the nature of pensions. Is the social insurance payg pension the property of the retiree, or it is only a part of the working generation income shared via the social insurance system with the retired generation? How should the protection against poverty and income replacement components be combined in the pension system and how should they be financed? How should the payg and funded components be united and what are the roles of the private sector and the government? In this article, Lithuania’s attempts to cope with the recession’s consequences and to respond to these newly posed questions are presented.

scholarly journals Restructuring of the Disability Pension Scheme Following a Concept of an Integrated Public Social Insurance System in Poland

2020 ◽  
Vol 2 (1) ◽  
pp. 9-17
Author(s):  
Roman Garbiec
Keyword(s):  
Disability Pension ◽  
Social Insurance ◽  
Pension System ◽  
The State ◽  
Pension Scheme ◽  
Social Insurance System ◽  
Insurance System ◽  
The Social ◽  
Polish Government ◽  
Pension Benefits

AbstractThe disability pension system in Poland has operated largely unchanged since the 1970s. A compelling need to reform the system and adjust it to the challenges of the 21st century is an axiom in the Polish social policy. Unfortunately, restructuring of this system has never been, and is not a top priority for the Polish government. Ignoring this problem is a headwind against economic growth in Poland as the state is overburdened with significant social taxes. A need for the state to provide subsidies to cover current expenditures of the Social Insurance Trust Fund (FUS) is a permanent concern of the national economy. This paper highlights legislative errors and omissions in the Polish social insurance system, and the share of the state's budget devoted to financing of this system and benefit payments over the years 1991-2018. In the main part of the article, financial aspects of the operation of the pension system in Poland were presented. At the end of the article, a preliminary concept of a reform of the existing disability pension system was outlined, whose aim is in particular to improve its financial effectiveness and introduce uniform rules for the payment of pension benefits in Poland.

scholarly journals Current state of pension reform in Ukraine

2019 ◽  
Vol 8 (2) ◽  
pp. 75-85
Author(s):  
Olha Dymnich
Keyword(s):  
Economic Crisis ◽  
Social Insurance ◽  
Social Protection ◽  
Pension System ◽  
Practical Significance ◽  
Current Phase ◽  
Social Insurance System ◽  
Insurance System ◽  
Social Tension ◽  
The Government

The current phase of Ukraine’s development characterizes by a complex of external and internal challenges, which provoked a deep economic crisis in the country, led to a serious deterioration of the living standards, exacerbated social tension. The way to overcome the economic crisis lies in the implementation of complex long-term economic reforms that require the support of the entire society based on national cohesion, unity and trust to the government. In this context, reliable social protection of the population is becoming one of the main factors of national security in Ukraine. This requires the government to rethink the fundamentals, ideology, strategy and tactics of financial policy in the field of social risk management as well as cardinal practical steps to increase the role and significance of the basic institution of social protection of the able-bodied population in market economy countries - the social insurance system. The balance of the state social insurance system depends on the financial equilibrium of the Pension Fund of Ukraine, which concentrates about 90% of its financial resources. The path to such an equilibrium lies in the transition to a three-pillar pension system. However, this is possible only if our country achieves economic stability. Premature forced state compulsory accumulative insurance (second pillar of the pension system) under the crisis conditions will create a threat of social tension aggravation. Thus, under current economic conditions, the introduction of the second pillar of the pension system, although it is an objective necessity, requires clear economic preconditions, the main are: restoration of GDP growth based on overcoming the crisis in the real sector of the economy; the hryvnia exchange rate stabilization; growth of the average monthly wage in the country etc. Actuality, practical significance as well as insufficient elaboration of this problem caused the choice of the topic of the article, determined its purpose, task, logic and content.

scholarly journals Institutional Design and Incentives for Migrant Workers to Participate in Social Insurance in China: Evidence from a Policy Experiment in Chengdu City

2021 ◽  
Author(s):  
Yihao Tian ◽  
Yuxiao Chen ◽  
Mei Zhou ◽  
Shaoyang Zhao
Keyword(s):  
Social Security ◽  
Migrant Workers ◽  
Security Policy ◽  
Social Insurance ◽  
Participation Rate ◽  
National Bureau ◽  
Social Insurance System ◽  
Insurance System ◽  
The Social ◽  
Social Security Policy

Abstract Background: Rural-to-urban migration has increased rapidly in China since the early 1980s, with the number of migrants reaching 376 million in 2020 (National Bureau of Statistics [NBS], 2020). Despite this sharp trend and the significant contributions that the migrants have made to urban development, migrant workers have had very limited access to the social insurance that the majority of urban workers have enjoyed. Methods: Based on the background of the social insurance system adjustment in Chengdu in 2011, we establish a difference-in-differences (DID) model to empirically test the impacts of change in social insurance policy contribution rates on migrant workers' social insurance participation rates, using the China Migrants Dynamic Survey (CMDS) data from 2009-2016.Results: The social insurance participation rate of migrant workers was significantly reduced after they are incorporated into the urban worker insurance system. Meanwhile, there is no significant change in the wages of migrant workers, but the working hours became longer and the consumption level turned lower. That is to say, simply changing the social insurance model of migrant workers from "comprehensive social insurance" to "urban employee insurance" reduces the incentives for migrant workers to participate in the insurance and harm the overall welfares of migrant workers.Conclusion: The design of the social security policy is an important reason for lower participation rate of migrants. Therefore, it is necessary to solve the problem of insufficient incentives through targeted social security policies. Specifically, the first is to formulate a social security policy contribution rate suitable for the migrants. The second is to establish a comprehensive social security policy and gradually integrate the social security system.

scholarly journals Institutional Design and Incentives for Migrant Workers to Participate in Social Insurance in China: Evidence From a Policy Experiment in Chengdu City

2021 ◽  
Vol 9 ◽  
Author(s):  
Yihao Tian ◽  
Yuxiao Chen ◽  
Mei Zhou ◽  
Shaoyang Zhao
Keyword(s):  
Social Security ◽  
Migrant Workers ◽  
Security Policy ◽  
Social Insurance ◽  
Institutional Design ◽  
Participation Rate ◽  
Social Insurance System ◽  
Insurance System ◽  
The Social ◽  
Social Security Policy

Rural-to-urban migration has increased rapidly in China since the early 1980s, with the number of migrants has reached 376 million by 2020. Despite this sharp trend and the significant contributions that migrants have made to urban development, the migrant workers have had very limited access to the social insurance that the majority of urban workers enjoy. Against the background of the social insurance system adjustment in Chengdu in 2011, this study uses a difference-in-differences (DID) model to empirically test the impacts of changes in the social insurance policy contribution rates on the social insurance participation rates of migrant workers, using the China Migrants Dynamic Survey (CMDS) data for 2009–2016. We find that the social insurance participation rate of migrant workers was significantly reduced after they were incorporated into the urban worker insurance system. There was no significant change in the wages of migrant workers, but the working hours were increased and their consumption level decreased. In other words, simply changing the social insurance model of migrant workers from “comprehensive social insurance” to “urban employee insurance” reduces the incentives for migrant workers to participate in insurance and harms the overall welfare of migrant workers. Our study indicates that the design of the social security policy is an important reason for the lower participation rate of migrants. It is necessary to solve the problem of insufficient incentives through the targeted social security policies; primarily, the formulation of a social security policy contribution rate suitable for the migrants, and the establishment of a comprehensive social security policy and the gradual integration of the social security system.

Economic burden of multiple sclerosis to the social insurance system in Germany

2017 ◽  
Vol 26 (3) ◽  
pp. 271-278
Author(s):  
Silke Neusser ◽  
Janine Biermann ◽  
Gerald Lux ◽  
Jürgen Wasem ◽  
Volker Reissner ◽  
...  
Keyword(s):  
Multiple Sclerosis ◽  
Economic Burden ◽  
Social Insurance ◽  
Social Insurance System ◽  
Insurance System ◽  
The Social

scholarly journals SOCIAL INSURANCE SYSTEMS IN RUSSIA AND GERMANY: SOCIOLOGICAL ANALYSIS

2019 ◽  
Vol 25 (2) ◽  
pp. 93-115
Author(s):  
Inna V. Kolodeznikova ◽  
Roman V. Kondurov ◽  
Diana V. Galitskayа
Keyword(s):  
Social Insurance ◽  
Point Of View ◽  
Federal Republic Of Germany ◽  
Economic Stability ◽  
Social Insurance System ◽  
Insurance System ◽  
The Social ◽  
Protection Mechanisms ◽  
German Model ◽  
Russian Model

Social insurance occupies a special place in the entire social policy of the state. Developed system of social insurance in the country provides citizens with effective protection mechanisms and thereby ensures economic stability and creates an atmosphere of social cohesion in society. At present, social insurance systems in Russia and Germany have significant differences that include both the structure and functioning of each type of insurance separately. These differences in the organization of social insurance systems in Russia and Germany are traceable from the very beginning. System of social insurance in modern Russia has been developing to a certain extent inconsistently and to the present time still is not completely formed. The German system developed gradually and improved with regard to the features of the interests of society at various stages of its development. The establishment of the Federal Republic of Germany as a social state determined the modern model of the social insurance system. Therefore, the study of the German model is interesting from the point of view of the subsequent possible introduction of its elements into Russian insurance practice. The article compares social insurance systems of Russia and Germany. The components of the systems are studied; their similarities and differences are revealed. Opinions of experts of the Federal Service for Labor and Employment on the prospects and problems of the development of the Russian model of the social insurance system and the possibility of using the German insurance experience in Russian practice are given.

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