scholarly journals REFORMS OF FINANCING PENSION INSURANCE SYSTEM IN CONDITIONS OF TRANSITION

2017 ◽  
Vol 1 (12) ◽  
pp. 51
Author(s):  
Aleksandar Stojanović
Keyword(s):  
Old Age ◽  
Pension System ◽  
Pension Reform ◽  
Current System ◽  
Intergenerational Solidarity ◽  
Pension Insurance ◽  
Current State ◽  
The Social ◽  
Pension Insurance System

A serious crisis of the pension system has been present in Bosnia and Herzegovina, as well as in many other countries for many years. The current system, which functions on the concept of intergenerational solidarity is financially unsustainable, due to negative demographic and economic movements, as well as reduced number of the employed, and an increase in the number of pensioners. As the main objective of the pension system (the social security of citizens, ie protection against the risk of old age, disability and death) is not fulfilled, it seems that the reform of the pension system is necessary. It is necessary to answer the question: how to transform the pension system of intergenerational solidarity in a system of individual capitalized savings in a socially painless and affordable way?! The implementation of the pension reform aims to establish a long-term sustainable pension system that will provide quality protection from risk, old age, death, disability, and at the same time be consentaneous with economic and demographic movements andensure an adequate level of benefit to citizens in the later age.The aim of the paper is to define the wider, objective picture of the current state of the position of the pension system, as well as providing basic guidelines for the reform and development courses in the future.

scholarly journals The path forward for sustainability of the pension system in a historical context

Upravlenie ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 40-48
Author(s):  
J. Mertl ◽  
R. Valenčík
Keyword(s):  
Pension System ◽  
Current System ◽  
Historical Context ◽  
Retirement Age ◽  
System Reform ◽  
Pension Insurance ◽  
Individual Productivity ◽  
Merit System ◽  
Pension Insurance System

The long-term sustainability and stability of the pension insurance system can be provided on the basis of a pay-as-you-go system, specifically the NDC variant, which can combine the main type of solidarity (between those who can and want to be gainfully active and those for whom the insured event has occurred) with income solidarity. When reforming the pension system in this manner the opportunity arises to begin gradual changes through fully merit system reform and therefore significantly motivating of extending the period of productivity (putting off retirement) through the upgrade of this system for persons who have reached the retirement age as specified by law.This paper aims to substantiate and explore possible changes in this direction that will not endanger anyone’s entitlements when the reforms are implemented (they have got the form of Pareto improvement), as they derive their funds by extending the time of individual productivity. To this end, the possibility of introducing an extension on top of current system of pay-as-you-go insurance, which could be entered voluntarily by persons who have already reached or are near statutory retirement age, is proposed, and modeled. The extension would operate on the principle that the paid premiums will be transformed into a lifetime annuity. The system would be significantly motivating which for most people means extending life at the fullest, associated with the option to retain beneficial social contacts and gradually relax their gainful activity without experiencing an untoward decrease in income.

scholarly journals ANALYSIS OF THE ESSENCE OF PENSION INSURANCE AND ITS PLACE IN THE SYSTEM OF SOCIAL PROTECTION OF THE POPULATION

2020 ◽  
Vol 6 (2) ◽  
pp. 9-16 ◽  
Author(s):  
Yuliia Aleskerova ◽  
Olena Sакоvska ◽  
Yuliia Didenko
Keyword(s):  
Social Security ◽  
Social Protection ◽  
Pension System ◽  
Pension Reform ◽  
International Labour Organization ◽  
Main Task ◽  
Pension Insurance ◽  
Insurance System ◽  
Stage Of Development ◽  
The Social

The purpose of this article is to deepen the analysis of theoretical and practical foundations of pension insurance for rural population, to substantiate its further reform and development. Theoretical aspects of pension insurance have been analyzed according to different scientific opinions of both the Ukrainian and foreign scientists, according to which pension insurance is considered a difficult category, and the diversity of its interpretation means that it has not been fully disclosed yet and remains the subject of research. Method. In most countries of the world, the same problems of the pension system as in our country have arisen. But thanks to pension reform, they have achieved successful results. Each country chose its own way of building a pension system based on its own demographic and socio-economic characteristics. However, despite this, the main task of any pension system is to protect against poverty and to provide a pension that can guarantee a decent standard of living for a pensioner. It is proved that to carry out effective pension protection policy in the country it is necessary to continue to study the essence of the concept of "pension insurance", as well as it is important and urgent to find ways to improve the reliability and effectiveness of mechanisms for ensuring the implementation of social guarantees in the pension insurance system. It is noted that insurance came about when humanity realized the danger that the environment hides. With regard to pension insurance, its formation took place in the context of the development of the entire insurance system. Results. The Ukrainian scholars in the field of pensions, exploring the nature and concept of pension insurance at the current stage of development, have determined that pension insurance is based on two important principles: the principle of solidarity and the principle of personal responsibility, also scientists focus on the principles put forward by the works on social protection of the population by the International Labour Organization, which are defined in the adopted Conventions of this organization. Value/originality. Analyzing the theoretical nature of pension insurance, one can determine that the essence of the social nature of pension insurance lies in the social protection of persons who have reached retirement age due to disability or loss of a breadwinner, pension insurance provides social security with minimal social security, approved by the International Labour Organization for the payment of pensions. Retirement insurance is also considered to be a complex category, and its diversity of treatment means that it is has not fully disclosed yet and remains a subject of study.

scholarly journals Empirical study of savings through life insurance in the Republic of Serbia

2021 ◽  
pp. 89-103
Author(s):  
Marija Lukić ◽  
Tatjana Piljan ◽  
Almir Muhović
Keyword(s):  
Life Insurance ◽  
Pension System ◽  
Premature Death ◽  
Pension Insurance ◽  
General Hypothesis ◽  
Current State ◽  
Life Saving ◽  
The Republic ◽  
Death And Loss

Life is a natural course, full of uncertainty and temptation of every human being. In order to make our lives more peaceful and have a more peaceful future, we are trying in various ways to secure ourselves and make our lives safer. Savings through insurance is a life-saving type of savings that involves the material protection of an individual against the risk of premature death and loss or loss of ability to earn money. In conditions where the solidarity-based pension system is unsustainable, it is necessary to develop voluntary pension insurance and savings through life insurance, as sources of long-term savings and additional sources of financing. The subject of this research is to answer the question of what people think about saving through life insurance. The main objective of this research is to evaluate the attitude of the residents of the Republic of Serbia towards saving through life insurance. The survey was conducted on the territory of the entire Republic of Serbia, on a suitable sample of 500 respondents. Through this paper, the citizens' attitude towards saving through life insurance in the Republic of Serbia is analyzed in one place. By analyzing the data from the survey, we can conclude that the general hypothesis is confirmed: Residents are not satisfied with the current state of savings through life insurance in the Republic of Serbia.

scholarly journals ANALYSIS OF ECONOMIC-FINANCIAL EXPERIENCE OF THE WORLD COUNTRIES IN THE SYSTEM OF PENSION INSURANCE

2020 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
Natalia Koval ◽  
Natalia Priamuhina ◽  
Inna Zhmurko
Keyword(s):  
Pension System ◽  
Pension Reform ◽  
Pension Funds ◽  
Standard Of Living ◽  
Main Task ◽  
Pension Insurance ◽  
Insurance System ◽  
The World ◽  
State Pension ◽  
Pension Insurance System

The purpose of this article is to analyze the experience of pension insurance systems in Europe, Asia, North and South America, Australia. The defining feature is that the existing pension insurance system in Ukraine does not perform its main task properly, since the rate of pension, for the most part, does not make it possible to maintain a decent standard of living for current pensioners. After analyzing the implementation of the pension reform in Ukraine, it should be emphasized that during the twelve-year period after the pension reform in the country there remain a number of unresolved issues regarding the pension provision of citizens, namely: aging of the population, which is one of the main factors that prompt the government to a new stage of reforming the pension system; the presence of arrears on contributions to compulsory state pension insurance; lack of proper differentiation of pension payments; shadow wages; lack of sound financial instruments for investing pension assets; unsatisfactory level of legal and financial awareness of the population in matters of pension provision; lack of interest of employers in financing non-state pension programs for employees, lack of confidence in the pension system of non-state pension funds. Methods. In most countries of the world, the problems of the pension system, same to what we have in our country, arose. But due to pension reform, they achieved successful results. Each country chose its own way of building a pension system based on its own demographic and socioeconomic features. However, despite this, the main task of any pension system is to secure from poverty and provide a pension that could guarantee a decent standard of living for a pensioner. Results. Ukraine is trying to build the pension insurance system, drawing on the best practice of the countries studied. Practical implications. It is found that the most effective and successful model of the pension system is considered to be Chilean, since the country has been using cumulative and voluntary pension systems for a long time, which are priority and allow to resolve the pension of their citizens financially, prudent and efficient investing of pension funds with lower rates of public investment income. The same model was taken as the basis in Peru, Argentina, Colombia and Kazakhstan. Value/originality. Analyzing the pension reforms implemented in Eastern Europe, it should be noted that part of the changes was due to the need to protect pensioners from poverty in the context of a sharp decrease in the rate of pensions because of the reduction of total pension contributions and the inability of the state to finance previous pension obligations. The real way to reduce the financial burden on employers and the state in the context of a solidarity pension system was to develop levels II and III of the pension system. It is noteworthy to study the foreign experience of the Eastern European country, such as Poland, which was one of the first to introduce a compulsory funded pension system.

scholarly journals Old age and poverty

2010 ◽  
pp. 165-175
Author(s):  
Drenka Vukovic
Keyword(s):  
Old Age ◽  
The Elderly ◽  
Poverty Rate ◽  
High Poverty ◽  
Pension Insurance ◽  
Poverty Risk ◽  
Current State ◽  
The Social ◽  
Older Citizens ◽  
Poor Welfare

The process of demographic changes in Serbia is followed by discussions on the need to provide safety at old age and solve the problems of poverty and social exclusion of older citizens. In the current state there are no mechanisms that guarantee an adequate life standard at old age, the consequence of which is a high poverty rate, deteriorating health and limited access to social programs. The results of the Survey on life standard from 2002 and 2007 show that poverty among population in general and pensioners has decreased, while the poverty risk among people older than 65 has increased twice. The restrictive methods of the reforms cause a change in the relation between the pensions and the earnings, so that more and more pensioners receive below average, i.e. minimal pensions. Not all old people are covered by pension insurance so that a significant number (around 400.000) does not have a safe monthly income at all. The state program of financial aid is of modest size and does not provide help to all of the poor. Welfare aid decreases the risk of poverty, but it do not guarantee an adequate level of material security at old age. The low level of minimal and average pensions, the decline of participation in the average earnings and the strict criteria of the social security system have brought to awareness the necessity of 'social pensions' and various help and support programs for the elderly. .

Dismantling an Earnings-Related Social Pension Scheme: Germany's New Pension Policy

2007 ◽  
Vol 36 (2) ◽  
pp. 319-340 ◽  
Author(s):  
WINFRIED SCHMÄHL
Keyword(s):  
Old Age ◽  
Pension Reform ◽  
Income Smoothing ◽  
Pension Scheme ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Pension Policy ◽  
Pension Insurance ◽  
Social Pension ◽  
The Social

A paradigm shift in pension policy decided by the German red–green coalition government will considerably affect the level and structure of pension benefits as well as the mix of public and private old-age security arrangements. The article starts with a brief outline of the pension schemes as they had been designed before the recent decisions, and with a few remarks on the reasons for current reform debates. The major measures of the 2001 Pension Reform are then described. The focus of the article is on the effects of the reform for (personal) income distribution and institutional design. A partial shift from (mandatory) public (pay-as-you-go financed) pensions to (voluntary) private (capital-funded) pensions and from defined benefit towards defined contribution will, among other things, reduce the benefit level in the social pension insurance. A large number of contributors – even after many years of paying contributions – will only receive benefits below the social assistance level. It can be expected that this development will transform the present earnings-related statutory pension scheme – which has a strong contribution–benefit link and is aimed at income smoothing over the lifecycle – into a basic, highly redistributive pension scheme, aimed mainly at avoiding poverty. Income inequality in old age is expected to increase as a result of the new strategy in pension policy.

scholarly journals FORMATION OF PENSION RIGHTS OF CITIZENS OF THE RUSSIAN FEDERATION IN THE SYSTEM OF COMPULSORY PENSION INSURANCE

2021 ◽  
Vol 42 (1) ◽  
pp. 54-63
Author(s):  
A.L. Safonov ◽  
◽  
M.A. Anyushina ◽  
O. A. Dubrovskaya ◽  
◽  
...  
Keyword(s):  
Old Age ◽  
Russian Federation ◽  
Transition Period ◽  
Pension System ◽  
The State ◽  
Pension Insurance ◽  
Insurance System ◽  
The Russian Federation ◽  
State Pension ◽  
Pension Insurance System

The present paper defines that the changes made to the pension legislation in the process of the ongoing pension reform have seriously modernized the mechanism for the formation of pension rights of persons insured in the compulsory pension insurance system, and have tightened the conditions for assigning old-age pensions. The analysis made it possible to identify the features of the formation of pension rights in terms of insurance and funded pensions for various categories of insured persons. Assessment of the pension rights for 2017 of 27,015 thousand employees of medium and large organizations and individual entrepreneurs insured in the compulsory pension insurance system (CPS), made it possible to conclude that under the current rules for the formation of pension rights to persons insured in the compulsory pension insurance system, in the conditions of the economic crisis prevailing in the Russian Federation, after the end of the transition period in 2024, a significant category of employees will need more than 15 years of insurance experience to be eligible to assign an old-age insurance pension. Starting from 2024, the number of people who have not received the right to an old-age insurance pension and who can expect to receive a social old-age pension only after five years will significantly increase among those who have reached retirement age. Among those retiring, the number of persons who have formed the minimum retirement points will increase; accordingly, in the future, the number of pensioners receiving the minimum pension, the size of which is lower than the pensioner's subsistence minimum, will increase. The authors concluded that to improve the situation with the formation of pension rights, first of all, it is necessary to stabilize the economic situation in the country, to ensure the development of the economy, to increase the income of the insured in the compulsory pension insurance system. In addition, it is necessary to activate the state policy in the field of legalization of labor relations, make changes to the mechanism for the formation of pension rights, linking this mechanism with the real contribution of the employee throughout his labor activity, thereby increasing his interest in the formation of pensions, and for categories of employees with traditional low incomes and those employed in socially significant spheres of activity (for example, education, health care, science) to make the transition to the state pension system.

scholarly journals Resilience, Reinvention and Transition during and after Quarantine

2020 ◽  
Vol 23 (3) ◽  
pp. 230-236
Author(s):  
Kristof Van Assche ◽  
Martijn Duineveld ◽  
S. Jeff Birchall ◽  
Leith Deacon ◽  
Raoul Beunen ◽  
...  
Keyword(s):  
Current System ◽  
New Governance ◽  
Governance System ◽  
Current Crisis ◽  
Economic Relations ◽  
Systemic Risks ◽  
The Social ◽  
Problems And Solutions ◽  
Governance Tools

Quarantine measures and the crises triggering them are never neutral in the sense that a return to the past is impossible. These measures are also a signal of other things like systemic risks and weaknesses. A period of quarantine is also a thing in and by itself. What happens after quarantine is thus shaped both by the state of the social-ecological system preceding quarantine and by what happened during quarantine. The selectivities introduced during quarantine span discursive, institutional and material realms. Old discourses can return with a new meaning. Social and economic relations can reappear seemingly unchanged, they can be more visibly altered and they can be dismantled. Ideologies, however, to be understood here as master discourses, read problems and solutions in their own way and do not necessarily come closer to each other or disappear. All this, offers food for thought regarding the possibilities and limits of resilience and transition. We argue that the current COVID- 19 pandemic casts doubt on the generic applicability of theories of resilience and transition, yet also sheds a new light on the value of both. We propose the concept of reinvention to describe what is happening and what could happen in a more coordinated fashion. We argue that the current crisis reveals mechanisms in systems dynamics that point at the existence of multiple pathways after dramatic system shocks. Some shocks and their system- specific responses (such as a particular kind of quarantine) are more amenable to resilience strategies afterwards, while others require a path of radical transition. They might also both be needed: a rather stark transition now might ensure future resilience. While the outline of the system after transition is not clear, some desirable features are clear as are the risks and damages of the current system. Also clear is the argument for transitional governance, a temporary governance system (beyond quarantine) which can enable the construction of new long term perspectives in governance and new governance tools meant to reduce chances of a crisis like this one reoccuring.

scholarly journals REFORMING THE PENSION SYSTEM OF UKRAINE TAKING INTO ACCOUNT THE EXPERIENCE OF POLAND

2021 ◽  
pp. 128-141
Author(s):  
T. Kravchenko ◽  
◽  
O. Moroz ◽  
Keyword(s):  
Banking Sector ◽  
Pension System ◽  
Pension Reform ◽  
Private Insurance ◽  
Private Pension ◽  
Insurance Companies ◽  
Pension Insurance ◽  
Financial Condition ◽  
Development Scenarios ◽  
Investment Returns

The state, stages of formation and problems of the pension system of Ukraine are considered. The main directions of pension reform are identified, taking into account the experience of Poland. The attitude of citizens to the current state and readiness for changes in the pension system of Ukraine is analyzed. The survey showed that the respondents are ready and support the reform of the Ukrainian pension system and the introduction of the accumulative component, but there is a big problem in the form of distrust of private pension funds and private insurance companies. It is determined that the pension system is no longer able to withstand the load and requires changes in the near future. Analysis of the pension system has shown that it has always been formed taking into account only short-term objectives, which makes it ineffective in strategic terms. It is substantiated that without the growth of the welfare of the population, the de-shadowing of the labor market and the introduction of accumulative pension insurance, the financial condition of the Ukrainian solidarity pension system will deteriorate every year. However, along with the expected positive effect of the introduction of the accumulative component in Ukraine, there are also risks, as fluctuations and instability of the domestic economy may lead to deterioration of the banking sector and insurance companies, which will reduce investment returns in the system or even partial loss of pension savings. Two development scenarios (pessimistic and optimistic) for the pension system of Poland and Ukraine are analyzed. It is determined that for the successful reform of the old solidarity system of Ukraine into a cumulative one it is necessary to: ensure sustainable GDP growth; create a centralized information system for collecting contributions; to personify and register all insured persons in the Pension Fund; identify the needs for qualified personnel, equipment and funds needed to meet the requirements of the new system; provide absolutely all conditions for the effective implementation of the private pension system.

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