The Analysis of the Danish Pension System

2021 ◽  
Vol 27 (8) ◽  
pp. 1852-1870
Author(s):  
Svetlana V. FRUMINA
Keyword(s):  
Graphical Representation ◽  
Pension System ◽  
Pension Reform ◽  
Population Aging ◽  
Pension Plans ◽  
Demographic Challenges ◽  
Working People ◽  
The Russian Federation ◽  
Pension Contribution ◽  
Voluntary Basis

Subject. The article focuses on the Danish pension system, which is well known for its reliability and the return on pension savings. The study discusses Denmark, because the number of population (over 80 percent) makes voluntary pension contributions, which resonates with the pension reform in the Russian Federation and the idea of convincing the Russian people make voluntary pension contribution to non-governmental pension funds. Objectives. I make suggestions on adapting Denmark’s successful practices of using such pension products that provide for voluntary pension pension contributions. I analyze the Danish pension system by tier, statistics on people involved into various pension plans, determine strengths of cumulative mechanisms, which help independently save and preserve the standard of living of working people when they retire. Methods. The article is based on methods of comparative analysis, induction, deduction, graphical representation. Results. The article shows the amount of the governmental pension in Denmark, overviews variants of pension plans with definite contributions and payments, points out some common aspects of the Russian and Danish pension systems. I explain why the pension reform is needed due to demographic challenges, such as population aging and the inability of Russia’s pay-as-you-go pension system to ensure the decent living for the retired. Conclusions and Relevance. The Danish expertise can be borrowed for the Russian practice so as to create the second and the third components (tiers) of the pension system, which would include professional and personal pension plans to be formed on the conditionally voluntary basis The suggestions herein can be used by executive authorities to outline new pension plans. As for the practical relevance, the article adapts some elements of the Danish pension system to the Russian practice.

scholarly journals Contribution volatility and public pension reform

2017 ◽  
Vol 17 (4) ◽  
pp. 513-533 ◽  
Author(s):  
TRAVIS ST. CLAIR ◽  
JUAN PABLO MARTINEZ GUZMAN
Keyword(s):  
Local Governments ◽  
Pension System ◽  
Pension Reform ◽  
Pension Plans ◽  
Fiscal Sustainability ◽  
Economic Downturn ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Unfunded Liabilities

AbstractIn the wake of the economic downturn of 2008–2009, researchers and policymakers have focused considerable attention on the extent of unfunded liabilities in US public sector pension plans and the implications for the long term fiscal sustainability of state and local governments. In response to the growth in liabilities, many states have introduced legislation that cuts back on defined benefit (DB) plan commitments, in some cases even shifting the pension system from a DB to a defined contribution or hybrid plan. This paper explores the factors that have led states to engage in pension reform, focusing particular attention on one factor that has only recently gained attention in the research literature: contribution volatility. While unfunded liabilities have significant long-term solvency implications, in the short term fluctuations in the amount of required contributions pose substantial difficulties for the ability of plan sponsors to balance budgets and engage in strategic planning. We begin by quantifying the volatility in the required contributions US states were expected to make between 2001 and 2013 and comparing the volatility of pension spending to other relevant tax and spending measures. Next, we describe the various types of pension reforms that states have implemented and examine the fiscal pressures facing those states that have engaged in reform. States with greater fluctuations in their required payments have been more likely to reduce benefits and increase employee contributions; they have also been more likely to institute these reforms sooner.

Non-governmental coverage of retirement benefits as part of the national socio-economic policy

2020 ◽  
Vol 16 (3) ◽  
pp. 449-466
Author(s):  
L.D. Kapranova
Keyword(s):  
Russian Federation ◽  
Pension System ◽  
Pension Funds ◽  
Pension Plans ◽  
Fund Raising ◽  
Real Economy ◽  
Investment Portfolio ◽  
Retirement Benefits ◽  
The Real ◽  
The Russian Federation

Subject. The article examines the existing non-governmental system of retirement benefits and non-governmental pension funds, key trends and issues in the Russian Federation. Objectives. I analyze key performance indicators of non-governmental pension funds and detect the main development challenges. I also study the composition and mix of their investment portfolio, growth in pension savings and their return. Methods. The study relies upon methods of logic, statistical, qualitative and quantitative analysis, and graphical methods for representing results of the analysis. Results. I discovered that more people opt for non-governmental pension plans in the Russian Federation. I analyzed the comprehensive investment portfolio of a non-governmental pension fund and found a growth in deposited funds and their return. Non-governmental funds’ investment portfolio now include more investment in the real economy. Non-governmental pension funds may become a source of financing the real economy to implement long-terms infrastructure projects through PPP. Conclusions and Relevance. Continuing their development, non-governmental pension funds are called on to increase the standard of living and ensure the sustainability of the pension system. The stability of the national economy, growing income of the population and trust in financial institutions are cornerstones for reinforcing the non-governmental pension system. The fact that the funded part of retirement pension has been frozen impedes the development of non-governmental pension funds, since the influx of financial resources is restricted. Long-term savings people make in non-governmental funds may streamline investments in the economy. Currently, the fund raising program for non-governmental pensions funds is insufficiently implemented, with efforts to revitalize it being ineffective.

scholarly journals Pension insurance in Russia and in the modern world: trends and prospects.

2018 ◽  
pp. 155-165
Author(s):  
Aleksandr Aleksandrovich Razumov ◽  
Dmitrij Nikolaevich Ermakov ◽  
Galina Vladimirovna Surkova
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Modern World ◽  
Pension Insurance ◽  
The West ◽  
The Russian Federation ◽  
The Difference ◽  
The Interest Rate ◽  
Western Experience ◽  
Pension Payments

The article analyzes the main aspects of economic efficiency of annuity assurance policy in Russia. The general trends in the development of pension systems in the countries of the West, the difference between Russia and the West in this aspect are revealed. The author offers to make the pension system of Russia more socially just and close to the ideas of the Constitution of the Russian Federation. The linkage of pension payments to the interest rate is seen as an ineffective and dangerous approach in modern Russian conditions to the organization of pension provision for the population, for which there is a negative Western experience. The purpose of this article is to designate the most suitable way for Russia to develop the pension reform within the framework of the review of the study of problems of increasing the efficiency of the pension system in Russia.

scholarly journals Structural-Functional Analysis of a Pension as an Object of Pension Legal Relations

2021 ◽  
Vol 18 (2) ◽  
pp. 138-150
Author(s):  
I. R. Mamatkazin
Keyword(s):  
Russian Federation ◽  
Pension System ◽  
Pension Reform ◽  
Complex Structure ◽  
Complex Function ◽  
Structural Elements ◽  
Pension Insurance ◽  
The Russian Federation ◽  
Pension Coverage ◽  
State Pension

The pension system of the Russian Federation has undergone three fundamental reforms. In 1992, the first law on pensions began to operate in Russia, which significantly differed from the Union legislation. In 2002, insurance principles were introduced into the pension system, which led to a change in the entire system of pension coverage for persons working under an employment contract, including new types of pension coverage. In 2015, there was a significant reform of the existing insurance pension system, which in its significance is no less significant than all the previous changes in the pension legislation. Each pension reform changed the procedure for calculating pensions, legislatively establishing a new pension formula for determining the amount of a pension. Along with this, the structural elements of pensions also changed. At the same time, it is possible to identify similar features in the structural elements of pensions assigned in different periods, but at the functional level. The totality of similar functions of pension elements allows us to talk about certain patterns in the development of the pension provision of the Russian Federation. So, despite the change in the nature of pensions from state to insurance, the essence of pensions, in general, remained the same. Moreover, the essence and functions of the elements of state and insurance pensions are largely the same. The pension is a social security payment with a complex structure. The presence of a structure, the presence of elements and connections between them, indicates a complex function performed by a pension. This function cannot be reduced to a compensatory function, a function of assistance or a function of substitution of earnings. There is an element in the pension structure that reflects past employment. In pensions of different nature, this happens in different ways: wages are taken into account (in state pensions) or insurance contributions (in compulsory pension insurance pensions). In addition, the pension should include an element that increases the amount of the pension in the presence of special circumstances of a subjective nature: disabled dependents, the need for constant outside care. In pensions for state pension provision, such an element is supplements to pensions; in compulsory pension insurance, this function is performed by a fixed payment. Social pensions and funded pension are one-component payments, which raises questions not only about the nature of these pensions, but also about their essence.

Chile pension reform will not tackle retirement age

2019 ◽  
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Current System ◽  
Safety Net ◽  
Right Wing ◽  
Content Type ◽  
Real Change ◽  
Pension Contribution ◽  
State Subsidies ◽  
Do So

Subject Pension reform. Significance On May 22, Chile’s Chamber of Deputies voted in favour of discussing a government bill to reform the country’s pension system. The initiative would require Chilean workers to contribute more towards their own retirement as well as improving the safety net for those unable to do so. Impacts If existing AFPs are barred from managing the extra 4% pension contribution, it will mark a real change to the current system. If the reform passes, pensioners in the poorest 60% of families will receive increased state subsidies. Pinera’s challenge will be to get enough support from the opposition to pass the bill without upsetting his own coalition's right wing.

scholarly journals ANALYSIS AND PROSPECTS OF PRIVATE PENSION FUNDS IN RUSSIA

2014 ◽  
pp. 82-87
Author(s):  
A. Pudovkin
Keyword(s):  
Growth Factors ◽  
Pension System ◽  
Pension Reform ◽  
Pension Funds ◽  
Private Pension ◽  
Pension Insurance ◽  
Pension Schemes ◽  
The Russian Federation ◽  
Key Drivers ◽  
Near Future

The article under the title "Analysis and prospects of private pension funds in Russia" deals with the pension system of the Russian Federation and the problems that the private pension funds will be facing with the introduction of the new pension reform. In addition, the article also deeply studies the private pension funds market in Russia. The study presented in the article also aims to thoroughly analyze the key drivers of the recent boom of the private pension funds sector. In addition, the study also reflects on the prospects of development of private pension funds and the major growth factors for the future taking into considerations the latest pension reform. It is exactly the pension capital that constitutes the major role to the growth of the the private pension funds market. In addition, taking into account the latest developments in the pension legislature, which imply no pension capital available to the private pension funds for the period 2014-2015 years, it is easy to foresee that the only growth factor left is pension reserves. Overall it obviously means that private pension funds should develop private pension schemes. Moreover, private pension insurance may become the major driver of the whole pension industry in the near future.

Roadmap for the New Pension Reform

2011 ◽  
pp. 4-31 ◽  
Author(s):  
E. Gurvich
Keyword(s):  
Emerging Markets ◽  
Pension System ◽  
Pension Reform ◽  
International Standards ◽  
Retirement Age ◽  
Total Size ◽  
Major Bottleneck ◽  
Support Ratio ◽  
Pension Contribution ◽  
Pension Benefits

The paper suggests measures aimed at raising efficiency and long-term sustainability of the pension system. Pension contribution rate, amount of budget transfer to the pension system, and total size of pension benefits in percent of GDP are found to exceed substantially levels typical for the OECD countries and emerging markets. Our major " bottleneck" is very low by international standards support ratio (i.e. number of contributors to pension fund per pensioner). Increase in the retirement age by 2 years for men and 5 years for women would bring life expectancy at retirement in Russia to the level typical for emerging markets. Provisional gain of the budget from this measure is estimated to vary from 1.4 to 2.3% of GDP. The objective of higher retirement age should be not budget gains but stabilization of replacement rate under forthcoming demographic crisis. Other measures suggested include in particular restoring basic pensions, fixing own sources of funds for each of the pension system tiers, and building barriers for running pension imbalances, and fostering late retirement for working aged.

scholarly journals The need for pension reform in Russia

2020 ◽  
Vol 210 ◽  
pp. 13029
Author(s):  
Galina Semenova
Keyword(s):  
Russian Federation ◽  
Pension System ◽  
Pension Reform ◽  
Minimum Length ◽  
Defined Contribution ◽  
Real Wages ◽  
Social Partnership ◽  
The Russian Federation ◽  
The Government ◽  
High Level

The relevance of the paper is caused by the fact that the current pension system did not satisfy either citizens, since their pensions were extremely miserable, neither employers due to the high level of contributions to the Pension Fund of the Russian Federation, nor the government, since the low level of pensions caused social and, as a consequence, political tension, nor the subjects of the Russian Federation, since the unfunded pension system obliged the regions to deduct funds from their own funds to cover pension obligations to subsidized regions. The way out of this situation is the creation of a new pension reform, which will increase the size of the pension by increasing the income of the pension system itself. The main goal of the pension reform is to increase the welfare of Russian citizens after they retire. The subject of the study is a new pension reform, the stimulus of which was to become a transition from an unfunded to a defined contribution pension system. The aim of the study is to identify the main economic reasons for creating a new pension reform. Methodology. To study the new pension reform, the main indicators are systematized: the minimum length of service for assigning an insurance pension, the amount of pension points for the period from 2015 to 2024 and subsequent years, and pension calculation formulas. Results. According to the new pension reform, the employee is encouraged to show full salary for employers to pay insurance contributions. The conditions are created to remove real wages from the “shadow”. The unfunded pension system caused social instability, caused a conflict of generations, workers and employers, destabilized the authorities. The new pension reform is designed to provide conditions for mutual assistance of generations and social partnership. The unfunded pension system led to the fact that pension payments were a heavy burden on the economy. The new pension system, at the expense of the funded part of the insurance contribution, creates an investment resource of “long money” (with a demand period of 25-30 years). Thus, the pension system not only serves elderly citizens, but also really works to develop the domestic economy.

Features of Calculating and Paying Compulsory Insurance Contributions to Extra-Budgetary Funds by Persons Engaged in Business Activities Without the Involvement of Hired Labor

Auditor ◽  
2020 ◽  
Vol 6 (9) ◽  
pp. 42-49
Author(s):  
D. Boboshko
Keyword(s):  
Russian Federation ◽  
Pension System ◽  
Insurance Premiums ◽  
Compulsory Insurance ◽  
The Status ◽  
The Russian Federation ◽  
Hired Labor ◽  
Voluntary Basis

The article deals with the system of mandatory state insurance, types of insurance premiums to non-budgetary funds of the Russian Federation and features of their payment by entrepreneurs who carry out their activities without employing employees in the status of individual entrepreneurs and self-employed. The procedure for calculating and paying mandatory insurance premiums by individual entrepreneurs «for themselves» is analyzed. The expediency and procedure of registration of self-employed persons as insurers in the pension system of the Russian Federation for payment of insurance premiums on a voluntary basis in order to form a future insurance pension is considered.

scholarly journals Comparison of Old-age Pension Policy in China and Russia: the Common and the Specific

2020 ◽  
pp. 68-82
Author(s):  
Tianhong Chen
Keyword(s):  
Old Age ◽  
Market Economy ◽  
Pension System ◽  
Pension Reform ◽  
Population Aging ◽  
Security System ◽  
Pension Policy ◽  
Planned Economy ◽  
Old Age Security ◽  
Pension Costs

In the process of transforming from planned economy to market economy, both China and Russia faced the issue of pension reform. There are similarities in the reform and development process and the system model of the pension security system in China and Russia. Transition from planned economy to market economy and aggravation of population aging are main reasons for the reform of pension system in both countries. Under the influence of the World Bank and other international organizations, China and Russia have gradually established a multi-tier pension system, with the state, enterprises and individuals sharing the pension costs. Differences also exist in the old-age security system of China and Russia.

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