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Population and the quality of labor force are the “strengths” features’ that ensure socio-economic development of a country. The last decades can be characterized as a transitional period, in which countries of European Union and especially the countries of Central and Eastern Europe are facing a demographic decline. Reduced birth rate, ageing and migration are factors’ which create a lot of pressure, both on labor market and public pension systems, items correlated with the population structure. In this paper we have presented the demographic situation and the size of migration in five countries of Central and Eastern Europe. The direct linkage between population structure, labor market and public pension systems represents, in transitional context, a threat to budget sustainability, especially in Romania. We consider that the reformation has to be adjusted with the new socio-economic conditions, finding new solutions for increasing birth rate, decreasing the “exodus” of young population and stimulating economic activities.


This paper identifies the conditions under which the private pension funds generate superior retirement outcomes compared to public pension system. The research objective is to determine the probability of success of the selected investment strategies in achieving the public pension system replacement rate, and the probability of the realization of extremely unfavourable outcomes. The methodology used in this paper includes the comparative analysis of simulated financial results of the four selected investment strategies implemented in the private pension fund model and the defined retirement benefits generated within the public pension system. For the simulation of the financial results at retirement, Monte Carlo simulation technique has been used. The authors have found that the success rate of the private pension fund in achieving superior financial results in comparison to public pension system is high, but only for the contribution rates higher than 10%. At low contributions rates, the extremely aggressive strategy is the only one that generates moderate success rate. Also, the probability of realization of extremely unfavourable financial results is lowest for the conservative strategy, which suggests that for the relatively high levels of the contribution rate, it is the most appropriate option for the pension fund members.


Beginning with the 1980s, when the sustainability of the public pension systems became endangedered, many countries have developed their individual pension plans and/or occupational pension plans in order to supersede or support their public pension systems,. This study examines the impact of individual pension funds on the development of both debt securities market and stock market in Turkey during the period October 2006-May 2015, using cointegration test and causality test with monthly data. We found that, in the long run, the private pension funds had positive impact on both development of debt securities market and stock market. Furthermore, causality appears to exist between the market for private pension funds, the debt securities market and the stock market.


There are important differences between all Eastern European countries regarding the implementation of pension system privatization. The differences regarding the political configuration between the countries from Eastern Europe might be a possible explanation for the amount of diversity in this area. The ideology of political parties that form or sustain the government that implements the reform can also be an explanation, but this influence must be studied beyond the cliché that stipulates that the right-wing parties will support the public pension system reform and the left-wing parties will oppose it. Armeanu (2010a) showed that there are countries where privatization was supported by the centre-left coalitions that needed to overpass a strong opposition made by the right-wing parties. Using the Ideal Point Estimation technique within the voting sessions related to pension reform during the last three Romanian legislatures, we will explain the formation of pro and against coalitions regarding the pension reform from Romania during the privatization process of public pension system. We also test the hypotheses of the model presented by Armeanu (2010a, 2010b), model that predicts the behaviour of political parties based on the position they have on a two-dimensional space related to the costs of pension reform.

Reform of Healthcare and Pension Systems in Chile (Conclusions for Poland)

Health reform in Chile attemps to improve healthcare of the citizens. The authorities of the country managed to combine both the private (ISAPRE) and public systems FONASA). The biggest success was the creation of AUGE (state subsidies for 66 diseases). The unsolved problems are as follows: long waiting lists and shortages of beds in public hospitals, shortage of medical doctors and specialists. As far as the pension reform is concerned Chile was the first state in the world which in 1981 totally privatized the public pension system. Unfortunately, the fruit of changes in Chile is less optimistic (extremely low pensions) than it was initially assumed. According to specialists the only chance for a correct work of the pension system is introduction of the system which would combine two forms, i.e. a state intergenerational agreement and capital system.

May 2019). Intelligence on European Pensions and Institutional Investment. Available online: (accessed on May 2019). Preda, M. The public pension system in Romania: Myths and facts. Transylvanian Review of Administrative Sciences 2011. Volume 32E, 234-251. Virjan, D. Analysis of the Romanian Pension System from an European Prospective. Annals of Faculty of Economics 2009, 616-621.

Monitor no.61 from 27 th January 2010. 19. Law no.287/2010 of the Budget of State Social Insurances for the year of 2011, published in Official Monitor no.880 from 28 th December 2010. 20. Law no.571/2003 regarding the Fiscal Code, published in Official Monitor no. 927 from 23 rd December 2003. 21. Law no.263/2010 regarding the Unitary public pension system, published in Official Monitor no. 852 from 20 th December 2010, with further updates. 22. Law no. 227/2015 regarding the Fiscal Code, published in Official Monitor no. 688 from 10 th September 2015, with

(The causes of problems in the public pension system and reasons why funded pension insurance should be preserved in Croatia). Revija za socijalnu politiku, 26 (1): 37-52. DOI: Bežovan, G. 2019. Evaluacija procesa privatizacije mirovinskog sustava u Hrvatskoj (Evaluation of the process of pension system privatization in Croatia). Revija za socijalnu politiku, 26 (1): 1-35. DOI: Berger, A. N. and Humphrey, D. B. 1997. Efficiency of Financial Institutions: International Survey and

level of pensions of future generations and not to ensure the appropriate level of benefits distributed to current generations of retirees. The main source of funding for the public pension system is the transfer of financial resources between generations, from active generations to generations active in the past and beneficiaries today. Although one of the general rules of funding in the social security system is the rule of equity for generations, it can not be permanently respected, because either the generations are not equal in size or in terms of the

public employees. Until 2003, final income was considered as the basis for the pension calculation of a public employee. Since 2003, the period for the calculation of the pension base has increased gradually. In 2028, the pension base will be computed based on the average income of the last 40 years. The public pension system is financed in three parts: contributions of the workforce, supplementary transfers For example, the Public Employment Service Austria (AMS) pays the contributions for the unemployed. and a state subsidy, which currently makes up approximately a