scholarly journals PROS AND CONS OF PENSION REFORM- GEORGIAN CASE

2020 ◽  
pp. 91-95
Author(s):  
ZURAB MUSHKUDIANI ◽  
DAVID MAMRIKISHVILI ◽  
IRAKLI GACHECHILADZE
Keyword(s):  
Current Issue ◽  
Pension System ◽  
Pension Reform ◽  
Economic Environment ◽  
The Public ◽  
Long Time ◽  
Heavy Burden ◽  
Pros And Cons ◽  
State Pension ◽  
Over Time

The paper studies pension reform in Georgia which has been going on since the 1990s, evolving over time and taking a modern look. The axiom is that the pension system in our country needed to be upgraded. The discussion on the current issue has been going on for a long time and the topic does not lose its relevance today. The establishment of a liberal economic environment can be considered as the basis for the accumulation of «accumulated pensions» in our country. Like all recent reforms, there are supporters and opponents of the reform, but unfortunately, for a number of reasons, the public expresses distrust and views the reform as a step backward. It is clear that pensioners› reliance on the basic state pension is a heavy burden for the country›s budget.

scholarly journals Problematic aspects of the regulatory and legislative framework for calculating pensions in Ukraine

2019 ◽  
pp. 71-80
Author(s):  
Lina Diakovych
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Legal Framework ◽  
Retirement Age ◽  
European Economic Area ◽  
Defined Contribution ◽  
Average Life Expectancy ◽  
Legislative Framework ◽  
State Pension ◽  
Pension Payments

Introduction. In order to further move towards the European Economic Area, Ukraine needs to take pension reform measures. Pension provision in Ukraine has to be profoundly reformed in terms of regulatory and legislative framework for calculating pensions in Ukraine. What is of particular importance is improving Ukraine’s laws and methods for calculation and pension payments to citizens. Another important focus of the reform agenda is to define categories of people eligible for old-age pensions, disability pensions, and long- service pensions. Purpose. The purpose of the article is to interpret the regulatory and legislative framework for calculating pensions in Ukraine; to describe changes in pension payments before and after the reform was implemented; to highlight ways of improving pension payments in terms of regulations and legislation. Methods. The research methods used in the article include: analysis; comparison; historical method to consider the legislative framework for calculating pensions at different periods of time. Results. The regulatory and legal framework for calculating pensions in Ukraine is a complex system comprising the Constitution of Ukraine, the Laws of Ukraine, the Labour Code of Ukraine, decrees, Presidential decrees, International agreements and laws of the USSR. Some of these regulations and legislation need to be revised and amended in order to bring them in line with contemporary practices and modern standards. It is claimed that since 2017, Ukraine’s government has been implementing the pension reform aimed at relieving the pressure on the working-age population and improving living standards for retired people. In particular, the retirement age has been raised, eligibility criteria for preferential pensions have been revised, and methods for calculating pensions have been changed. The Ministry of Social Policy of Ukraine argues that the new pension reform is expected to enhance social, labour and post-retirement relations, to increase tax revenues through reporting real salaries, to develop a framework of social justice when calculating pensions. The author points out that the regulatory and legislative framework for calculating pensions is outdated at this stage and it requires changes. The considered changes are as follows: the establishment of a working group for entitlement of preferential pensions; the introduction of wage differentials by industries and occupations; the increase of pensions in line with inflation and age; the implementation of notional defined contribution pension system; the introduction of the new Labour Code and Pension Code, which are expected to regulate labour and post-retirement relations and meet modern standards. It is also indicated that continued employment should be enforced by legislation and a system of granting advantages and social security benefits to those who retire later needs to be developed. In terms of legislation, sufficient regard should be given to non-state pension schemes, defined contribution pension systems, and the principle of fairness when it comes to pension entitlements. It is also crucial to adjust pension amounts and retirement age to align with the sustainability ratio and the average life expectancy. Discussion. Further research of regulatory and legal framework for calculating pensions in Ukraine should be focused on the development of the Pension Code and improvement of the existing laws relative to pension calculation and payment. The author also suggests differentiating minimum wages by industries and regions and countering the illicit labour market and campaigning against payments ‘in envelope’, because official wages are the basis for calculating pensions.

Institution of Banking Pension Provisions: Preconditions, Nature, Competition with Traditional Institutions

2015 ◽  
Vol 2015 (2) ◽  
pp. 27-55
Author(s):  
Yuriy Ezrokh
Keyword(s):  
Financial Institutions ◽  
Pension Fund ◽  
Pension System ◽  
Pension Reform ◽  
Banking System ◽  
Pension Funds ◽  
Econometric Analysis ◽  
Traditional Institutions ◽  
State Pension ◽  
Pension Benefits

The article analyzes the pension reform implemented in Russia in 2013–2014, provides the modeling of possible pensions, determines the efficiency boundaries for the use of insurance and savings-insurance schemes offered by the Pension Fund of Russia. The author examines the activities and effectiveness in managing pension savings and reserves from non-state pension funds, especially the system of voluntary savings insurance. The study identifies the challenges faced by these financial institutions, which constrain the development of the Russian pension system. Drawing on logical and econometric analysis the author identifies the competitive opportunity for banks to participate in the Pension Benefits Act, calculates the proposals’ efficiency for future retirees and the banking system as a whole, determines the contribution of the proposed solutions to enhanced competition and more competitive banking environment.

Iceland's New Plan for Debt Relief: Jubilee or Waiting for Godot?

2014 ◽  
Vol 5 (4) ◽  
pp. 517-530
Author(s):  
Maria Elvira Méndez Pinedo
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Debt Relief ◽  
Economic Recovery ◽  
European Law ◽  
Future Scenario ◽  
The Public ◽  
Long Run ◽  
Waiting For Godot ◽  
Loan System

Despite Iceland's economic recovery, nearly 48% households continue to struggle to make ends meet. This study argues, first, that the main reason behind over-indebtedness in this country is a loan system without parallel in Europe, based on a triple cost of credit (fix/variable interest, indexation of credit to inflation and negative amortization). Second, the problem is examined in the context of European law as some alleged malpractices of indexation have been referred to the EFTA Court. Third, the focus shifts to the debt-relief programme presented by the Icelandic government in 2013/2014 after the relative failure of previous debt-relief measures. It is argued that this plan will fail in the long run as long as the indexation of credit to inflation is not abolished. The private pension system in Iceland relies indirectly on indexed mortgage credit issued by the public Housing Financing Fund. Since a ban on indexation and a holistic pension reform are not expected soon, all present debt write off benefits will surely be eaten up by higher inflation. As long as indexation of credit is legal, the future scenario resembles less a debt-relief jubilee and more the theater play “Waiting for Godot ”.

scholarly journals Ukraine Pension System and Financial Markets: Conceptualization Problems

2011 ◽  
Author(s):  
Nataliya Rad
Keyword(s):  
Financial Market ◽  
Pension System ◽  
Pension Reform ◽  
Domestic Investment ◽  
Factors Analysis ◽  
Investment Resource ◽  
State Pension ◽  
Social Economic Development ◽  
Relationship Of ◽  
Market Infrastructure

The paper analyzes some aspects of Ukrainian pension system formation. All its three levels taken as a whole are a real source for the formation of domestic investment resources and implementation of their potential through financial market instruments. At the present stage relationship of these two institutes is pronounced in the frameworks of non-state pension funds. Implementation of the accumulative level of pension system has only to accelerate processes at work. Investigation is focused on the problems of integrating pension system investment resource into financial market infrastructure. It is noted that in the current conditions infrastructure of domestic financial market is being formed. Its instruments are developed and are functioning irregularly. However, there exist general problems that require their solution. They are related to insufficient operational capacity and efficiency of financial market regulating mechanism and other factors. Analysis of the quality of implementation of financial market basic macroeconomic function associated with redistribution of pension savings allowed us to make conclusion on the incompatibility of the achieved level of its development with the current needs adjusted for pension reform. Proposals for improvement of the concept of pension system and financial market along the lines of their harmonization and enhancement of the functioning efficiency in the context of social-economic development of Ukraine are worked out.

scholarly journals Individual Pension capital: Prospects of implementing

2020 ◽  
Vol 25 (2) ◽  
pp. 170-191
Author(s):  
M.A. Bundin
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Current System ◽  
Consumer Price Index ◽  
Research Information ◽  
Advantages And Disadvantages ◽  
Refusal To Participate ◽  
The Individual ◽  
High Level ◽  
State Pension

Subject. The paper examines the Russian pension system. Individual pension capital is an alternative direction to the current system of non-State pension funding. Objectives. The author is to consider the embedding of the individual pension capital concept. He also aims at analyzing the advantages and disadvantages of the concept. Methods. The study uses the correlation-regression analysis and the analysis of the research information base on the surveyed topic. Results The article allows acknowledging the dependence between the expansion of the incapacitated group of citizens and the consumer price index growth. Besides, it allows to determine the main risks of the proposed concept. Conclusions and Relevance. The main internal risks of the proposed pension reform include: a massive refusal to participate in the new system; the decreasing of participants' contributions tariffs to funds up to 0.1 percent; high-level costs (for funds).

scholarly journals How the Pension System Responds to Pandemic Shocks: A Case Study of Georgia

2021 ◽  
Vol 17 (5) ◽  
Author(s):  
Maka Ghaniashvili
Keyword(s):  
Life Expectancy ◽  
Pension System ◽  
Pension Reform ◽  
Age Distribution ◽  
Financial Strain ◽  
Significant Step ◽  
Pros And Cons ◽  
Pension Benefits ◽  
The Impact ◽  
Fiscal Risks

The paper focuses on the impact of the pandemic crisis on pension system in Georgia and analyzes the pros and cons of the ongoing pension reforms in the country. Decreased birth rates and increased life expectancy over the next decades will significantly change the picture of the age distribution of the population in many countries. As life expectancy increases and the birth rate decreases, more people retire than are added to the workforce. A change in the demographic picture necessitates fundamental pension reform. At the same time, the world is facing a crisis caused by the COVID-19 pandemic. The future is uncertain, both medically and financially. Despite optimistic forecasts, the second wave of the COVID-19 pandemic has begun in many countries which further increases the degree of uncertainty. Funded pension schemes suffer from the crisis because lower returns diminish their asset values, while low yields on public debt instruments increase the present value of their liabilities. This can generate both explicit fiscal risks— in the case of government guarantees—and implicit fiscal risks through lower private pension benefits or financial strain on the sponsoring employers. Our research is focused on the pension system and its development problems in Georgia, taking into account that since 2019, 1st January, the existing financial, demographic and economic challenges have determined the establishment of a new pension system. Main sources for the research are data gathered from the international organizations and local governmental and statistical data softwares. Our research results show that the pension reform launched in 2019 in Georgia is a significant step forward in reducing social imbalances and fiscal pressures in the medium / long term. However, for further development, it is important to systematically assess the effectiveness of pension policies, taking into account factors such as changes in demographic structure, expected fiscal spending, the inequality gap and the crisis caused by the COVID-19 pandemic.

Paying for Our Futures: The Political Economy of Pension Reform in the UK

2006 ◽  
Author(s):  
Paul Johnson
Keyword(s):  
Political Economy ◽  
Pension System ◽  
Pension Reform ◽  
Radical Change ◽  
The Political ◽  
Economic Knowledge ◽  
Current State ◽  
The Uk ◽  
State Pension ◽  
The Cost

The development of pension provision in Britain since January 1909, when the first public old-age pension was paid, should be celebrated as one of the greatest achievements of collective action in the twentieth century. This chapter examines what has and has not changed in terms of demographic and economic knowledge of pension systems. It then considers the causes and consequences of this delusional consensus and offers some suggestions about how a more responsible set of political and popular attitudes to pensions might be created, beginning with a fundamental reform to the state pension system. The rationale advanced by the Pensions Commission for maintaining much of the complexity of the current state system is the cost and disruption that would be entailed by radical change. This chapter discusses the political economy of pension reform in Britain, focusing on the link between demography and pensions as well as between pensions and economics.

scholarly journals The Pension System in Ukraine – Some Aspects of Reforming

2021 ◽  
Vol 6 (521) ◽  
pp. 176-183
Author(s):  
M. M. Furdak ◽  
Keyword(s):  
Social Protection ◽  
Pension System ◽  
Pension Reform ◽  
Pension Insurance ◽  
State Institutions ◽  
Accumulation System ◽  
Asset Value ◽  
State Pension ◽  
Pension Payments ◽  
Compulsory State

This publication is aimed at studying the processes and defining the main problems in reforming the pension system of Ukraine. The article analyzes the state of functioning and development of three levels of pension provision at the present stage of socio-economic development of the country. It is determined that only level 1 actually works in Ukraine – the solidarity system of compulsory State-controlled pension insurance, while the mandatory accumulation system has not acquired its development, and the voluntary accumulation system has an extremely low share in the general pension system. Some financial results of the Pension Fund of Ukraine for 2020 and the approved budget for 2021 are analyzed. Substantiated conclusions have been drawn about the problems of the solidarity system, such as: the existing budget deficit of the Fund, which leads to the formation of its debts; low, socially unadapted level of pensions; disparities in the size of pensions assigned in different years. The rating of currently operating non-State pension funds of Ukraine (the third level of pension provision) are analyzed according to the criteria of asset value, number of participants, amounts of pension payments and profitability, as well as the dynamics of some basic indicators of their activity. It is determined that the functioning of the non-State pension system in the country is hampered, in particular, for psychological reasons due to the population’s distrust of non-State institutions. Since the second level of pension provision – the mandatory accumulation system – has not yet started working in the country and taking into account the problems of the first and third levels, a reasonable conclusion has been made on the inhibition of the pension reform in Ukraine and the need to intensify the work on the implementation of all three levels of pension provision in order to achieve a sufficient level of social protection of citizens.

scholarly journals PENSION REFORM: ECONOMIC RISKS OF REALIZATION OF CONSTITUTIONAL RIGHTS OF THE INSURED PERSONS

2016 ◽  
pp. 0-0
Author(s):  
Аркадий Соловьев ◽  
Arkadiy Solovev
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
The State ◽  
Retirement Age ◽  
Constitutional Rights ◽  
General Increase ◽  
Strategic Objectives ◽  
Rigid Connection ◽  
The One ◽  
State Pension

Among the instruments of pension system regulation (record of service, earnings, contributions, privileges), the legislatively regulated parameter “retirement age” occupies a special place. Now we observe the process of “aging of the population” because of the general increase in life expectancy on the one hand, and the growth of the total number of pensioners, on the other. At the same time, the tendency of increase in expenses on financing the state pension obligations remains. However, even on the basis of the specified facts identification of aging of the population with the budgetary crisis and the establishing of a rigid connection between the pension budget expenses and the growth of the number of pensioners and the general aging of the population looks more or less convincing only at first sight. The scientifically-based solution of the retirement age problem lies not in the course of receiving a tactical — economic — result (saving of budget expenses), but in achieving of strategic objectives of the insurance pension reform: providing of the constitutional guarantees on adequacy of the pension rights of the insured persons and the state pension obligations.

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.

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