A common problem in systems and control theory is to provide an approximation to non-linear systems. We provide a novel approach as a general solution to this problem originally conceived by ...Gamkrelidze. We consider and solve a general approximation problem which provides the fundamentals for various switching-type systems thus encompassing a wide range of systems theory problems.
The state pension systems of most countries in the world have been facing the problem of difficult financing due to the mismatch in the inflow of funds deriving from the contribution of employees and ...the outflow of funds from the payment of pensions to pension beneficiaries. The main causes of poor functioning of the current financing system are mostly demographic. In order to overcome problems in the financing of pension systems, most countries have implemented pension reforms based on parametric changes in state pension insurance and on the introduction of compulsory or voluntary pension insurance policies. Certain legal changes were made in Serbia regarding the age limit necessary to be eligible for old-age and disability pensions, tightening the conditions for obtaining the right to a pension, calculating pensions, and other. Also, more than a decade ago, voluntary pension funds appeared in Serbia, which have so far achieved positive business results. Serbia is still in an unfavourable situation regarding the financing of the state pension fund, whose deficits are financed by subsidies from the budget. In the future, it is necessary to devote more attention to structural measures, such as more effective employment policies, birth-rate policies, and more. Also, it is necessary to constantly improve measures and instruments for combating the grey economy.
The financial sustainability of pension systems is one of the crucial topics in the context of population aging. The issue of financial sustainability is primarily associated with public unfunded ...pension schemes, where there is an increase in future expenditures and a reduction in income due to the demographic structure. A possible solution to this problem is represented by the introduction of fund schemes into the design of the pension system which is recommended by the World Bank. But it brings certain risks for pension systems. An example of the implementation is Denmark, where the public fund scheme ATP exists in the first pillar and the second pillar is funded and managed by private companies. The aim of this paper is to present the Danish pension system with a focus on fund schemes and their differences with emphasis on management. This paper uses a literature review and analysis of quantitative data in the form of a time series. Data are used from Stat Bank and Forsikring & Pension. Next, the synthesis method is used to summarize the findings. The conclusions of the paper provide a basic overview of Danish pension fund schemes and can be an inspiration for possible reforms of pension systems in other countries.
The present research aims to conduct an in-depth analysis of the degradation of Romania’s demographic situation, with a particular focus on the implications of the aging trend. The study aims to ...investigate how this demographic shift may lead, in the absence of reformation measures, to elevated levels of poverty, social exclusion, and dependency among the elderly population. The contributing factors to this phenomenon include migration patterns, negative natural population growth, and the increasing life expectancy of the population. These factors collectively result in a growing imbalance between the elderly and working-age populations. The repercussions of this demographic shift include heightened pension costs, increased public debt, exacerbated social inequalities, and a potential hinderance to economic growth.
Since 2003, Turkey's pension policy has been increasingly based on facilitation of individual savings administered by private pension funds. The introduction of private pensions is expected to ...reinforce inequalities as a result of socio‐demographic features and pension system design. This article evaluates voluntary individual pension system with a perspective on pension equality. Monthly contributions to pension accounts are explored on the basis of socio‐economic and demographic characteristics of the customers of a currently operating pension company. Findings reveal that differences in people's saving capacities have become a source for pension inequality. Furthermore, state subsidies, which increase in proportion to individual contributions, strengthen unequal distributional dynamics. Pension privatization harms social solidarity as it intensifies existing social inequalities.
Purpose: The objective of this work is to highlight the various reform measures to be undertaken in order to ensure the sustainability of general pension schemes, in particular those aimed at ...promoting the partial capitalization of pensions in Algeria.
Theoretical framework: Like most countries in the world, the Algerian pension system, which is managed on a PAYG basis, is currently facing major funding problems. Indeed, despite the measures taken to reduce its financial deficit, the latter has persisted since 2013 and has been estimated at almost 2.7 billion USD at the end of 2022. In fact, if measures to lay the foundations for sustained growth, which creates jobs (with improved inclusion in social security), are taken by the government, the system could regain its balance in the short and medium term. However, the problem of population ageing, which could occur in a few decades, reminds the urgent need for structural reforms.
Design/Methodology/Approach: The design of the study is descriptive and analytical. Data for this study were collected from official Algerian sources, namely the NRF and the NOS, while content analysis was conducted by interpreting these data.
Findings: The results of this study show that the Algerian public authorities have taken many measures in recent years to fill the deficit in the pension system, of which the repeal at the end of 2016 of the early and unconditional age pensions with possibility of maintaining the activity until the age of 65, the establishment of the NPRF in 2006, the introduction of additional revenue from customs duties applied to goods import operations from 2020, and the introduction of the NSSF in 2021. Nevertheless, this would in no way escape the insolvency of the pension scheme, hence the need for a structural reform that targets in addition to parametric changes, the introduction of a capitalization dose complementing the current pension system (supplementary pension) for its rebalancing in the short, medium and long term.
Conclusion: the availability of substantial oil revenues may downplay the importance of the financial problems facing the Algerian pension system and their impact on budget stability (according to the NRF, the fund’s deficit stood at 376 billion DZD in 2022 and could reach 1.200 billion DZD in 2030), whereas this oil boom should be used to finance the transition by adopting a partially funded pension scheme. At the same time, this would require more efforts to boost the stock market in order to create an environment conducive to the establishment and development of this funded pillar.
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