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.
We analyze how precautionary motives affect the decisions of a risk-averse agent on saving, labor supply and retirement. In a setting where there is a random shock which affects agent disutility from ...work, we show that uncertainty directly affects retirement age and saving, but leaves labor supply during working age unchanged. In particular, a precautionary motive for retirement always arises, which pushes the agent to bring forward retirement in the presence of a risk on the cost of work effort. Moreover, prudence and a sufficiently high level of absolute temperance are sufficient conditions for precautionary saving. In this setting, we also study the effects of two common reforms of the pension system: an increase in pension contributions and a cut in pension benefits. The conditions for the agent to postpone retirement and increase labor supply are studied. This makes it possible to characterize the circumstances when the financial soundness of the pension system improves after these reforms.
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.
This article proposes a reform of the pension system in Peru, which consists of creating a public and autonomous Pension Fund Administrator, which performs the tasks of the current National Pension ...System and the Private Pension System. Through this reform, greater efficiency could be gained through economies of scale and the design of resources from both the State and the contributors to both systems could be improved.
The article substantiates the need to increase the retirement age in the context of reforming the pension system of Ukraine. Arguments are presented that the process of raising the retirement age ...should be scientifically sound, have a long-term nature, and proceed gradually. It is noted that increasing the retirement age will have positive effects both for the pension system in particular and for the economic system of Ukraine as a whole, including: 1) a decrease in the financial dependence of the pension system on budget transfers; 2) ensuring a socially acceptable level of pensions; 3) preventing the growth of the insurance burden on the business; 4) compensation for the demographically determined reduction in the economically active population, stabilization of the labor market; 5) promoting active longevity. It is proved that the main arguments against raising the retirement age are for the most part not sufficiently substantiated. The adoption of appropriate amendments to the current legislation regarding raising the retirement age to 65 must be carried out by adopting the law "On adapting the retirement age to demographic changes in society".The solution to the strategic problem - the long-term balance and stability of the pension system can be achieved only by implementing an integrated approach to pension reform, which is not limited to one parameter, no matter how important it is. It is necessary to carry out long-overdue transformations in the labor market, in demographic policy, economy and social sphere, which would help create real conditions for citizens to earn a decent level of pension and fully realize their rights to receive it.It is proved that in order to avoid the short-term effect of raising the retirement age and further increasing the cost of paying pensions due to the increase in the number of recipients with an increased amount of pension rights due to an additional period of seniority, it is necessary to carry out actuarial calculations that allow us to formulate practical proposals to mitigate the negative economic consequences.
E-government has been, for the past 20 years, one of the main fields of study for researchers following transformation in the public administration systems, the most important and visible one after ...the New Public Management. Since 2001, many papers have tried to establish o list of stages one should follow in order to observe the process a public organization goes through in its journey to digitalizing public services. This paper will review four of the most important and universally accepted models, from the Layneand Lee (2001) complex model, to the Gartner (Baum & DiMaio, 2000) specific one, in order to decide which one best applies in practice and can actually be used to analyse a public organization and its pro-cess towards digitalization, and which ones apply better to the general public system, like the one pro-posed by Moon (2002). In order to have a specific example and apply the theoretical models in practice, this paper will be presenting the case of the public pension system in Romania, through its local Houses of Public Pensions and their level of digitalization, when it comes to public services and public interaction with people who benefit from their services. I will begin by presenting the context in which e-government appeared and why is it so important in the development of any public administration of the 21stcentury, the main differences between the stage models mentioned above, and the arguments presented for applying one of them in our current study, followed by the methodology used to observe the characteristics of the digitalization process in the Public House of Pension of Brasov city, Romania. The results of the study will be applied on the stages mentioned above in order to determine which stage are we currently talking about and how well the model can be applied in practice.
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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