Determinants of the Level of Contributions for Pension and Disability Insurance: The EU and Serbia

Open access

Abstract

Both in theory and practice, great attention is paid to the analysis of the pension expenditures level, their determinants, as well as the options for their reduction, whereas the analysis of the revenues level and contributions, as the most significant revenue in contribution-based pension systems, is often neglected. The aim of this paper is to analyse the determinants of the level of contributions for pension and disability insurance in order to identify options for increasing their levels in the pension system of the Republic of Serbia. By using the comparative method, a comparative analysis of data about the trends of the most significant determinants of contribution levels among the European Union Member States and Serbia is performed. Research results have shown that increase in the contribution level for pension and disability insurance in the Republic of Serbia can be achieved by extending the definition of contribution base of employees, increasing the average effective retirement age and increasing the effective population coverage by this insurance. In addition to pointing out the options for increasing the contribution level for pension and disability insurance, the authors also propose the measures which can be applied in order to affect the increase of the contribution level for this insurance and, therefore, the total revenues level of the pension system of the Republic of Serbia.

If the inline PDF is not rendering correctly, you can download the PDF file here.

  • Bailey C. & Turner J. (2001). Strategies to Reduce Contribution Evasion in Social Security Financing. World Development 29 (2) 385-393.

  • Cichon M. Scholz W. van de Meerendonk A. Hagemejer K. Bertranou F. & Plamondon P. (2004). Financing Social Protection: Quantitative Methods in Social Protection Series. Geneva: International Labour Office/International Social Security Association.

  • Demarco G. & Rofman R. (1999). Collecting and Transferring Pension Contributions. (Social Protection Discussion Paper Series No. 9907) Washington D.C.: World Bank.

  • Eurostat online data code: ifsi_dwl_a accessed: June 1 2015.

  • Fultz E. & Stanovnik T. (Eds.) (2004). The Collection of Pension Contributions: Trends Issues and Problems in Central and Eastern Europe. Budapest: International Labour Office.

  • Hu Y. & Stewart F. (2009). Pension Coverage and Informal Sector Workers: International Experiences (OECD Working Papers on Insurance and Private Pensions No. 31) Paris: OECD Publishing retrieved: http://dx.doi.org/10.1787/227432837078 accessed: June 11 2015.

  • ILO (2014). World Social Protection Report 2014/15: Building Economic Recovery Inclusive Development and Social Justice. Geneva: International Labour Office.

  • ISSA (2013). ISSA Guidelines on Contribution Collection and Compliance. Geneva: International Social Security Association.

  • McGillivrey W. (2001). Contribution Evasion: Implications for Social Security Pension Schemes. International Social Security Review 54 (4) 3-22.

  • Nacionalna agencija za lokalni ekonomski razvoj. Sistem oporezivanja rada i mogući pravci njegove reforme retrieved: http://www.naledserbia.org/upload/CKEditor/Sistem%20oporezivanja%20rada%20i%20moguci%20pravci%20njegove%20reforme.pdf accessed: June 10 2015.

  • OECD (2005). Private Pensions: OECD Classification and Glossary. Paris: OECD Publishing retrieved: http://www.oecd.org/finance/private-pensions/38356329.pdf accessed: June 5 2015.

  • OECD (2013). Pensions at a Glance 2013: OECD and G20 Indicators. Paris: OECD Publishing retrieved: http://dx.doi.org/10.1787/pension_glance-2013-en accessed: June 5 2015.

  • OECD retrieved: http://www.oecd.org/els/public-pensions/ageingandemploymentpoliciesstatisticsonaverageeffectiveageofretirement.htm accessed: June 1 2015.

  • Pallares-Miralles M. Romero C. & Whitehouse E. (2012). International Patterns of Pension Provision II: A Worldwide Overview of Facts and Figures (Social Protection & Labor Discussion Paper No. 1211) Washington D.C.: World Bank.

  • Petraković D. (2007). Reforma sistema penzijsko-invalidskog osiguranja u Srbiji. Industrija 2 29-46.

  • Pošarac A. (1995). Reforma sistema socijalnog i penzijskog osiguranja: nužnost ili modni trend. U: Popović T. & Stamenković S. (Ur.) Makroekonomska politika nakon sankcija (str. 73-93). Beograd: Institut ekonomskih nauka.

  • Rakić B. & Nikolić M. (2011). Uticaj demografskih kretanja na sisteme penzionog osiguranja. U: Aranđelović Z. (Ur.) Regionalni razvoj i demografski tokovi zemalja Jugoistočne Evrope (str. 403-413). Niš: Ekonomski fakultet.

  • Rakić B. & Ivković M. (2010). Reform of Pension Systems with Respect to the Reform in Serbia. In: Spasić D. & Stanković Lj. (Eds.) The Challenges of Economic Science and Practice in the 21th Century (pp. 51-63). Niš: Faculty of Economics.

  • Republički fond za penzijsko i invalidsko osiguranje (2015). Statistički godišnji bilten 2014. Beograd: Republički fond za penzijsko i invalidsko osiguranje.

  • Republički fond za penzijsko i invalidsko osiguranje retrieved: http://www.pio.rs/lat/osnovice.html accessed: June 21 2015.

  • SSA & ISSA (2002). Social Security Programs Throughout the World: Europe 2002. Washington D.C.: U.S. Government Printing Office.

  • SSA & ISSA (2014). Social Security Programs Throughout the World: Europe 2014. Washington D.C.: U.S. Government Printing Office.

  • Zakon o doprinosima za obavezno socijalno osiguranje (Službeni glasnik Republike Srbije 84/2004).

  • Zakon o izmenama i dopunama Zakona o doprinosima za obavezno socijalno osiguranje (Službeni glasnik Republike Srbije 62/2006).

  • Zakon o izmenama i dopunama Zakona o doprinosima za obavezno socijalno osiguranje (Službeni glasnik Republike Srbije 47/2013).

  • Zakon o izmenama i dopunama Zakona o doprinosima za obavezno socijalno osiguranje (Službeni glasnik Republike Srbije 57/2014).

Search
Journal information
Metrics
All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 219 60 1
PDF Downloads 131 46 1