Top

Published in:

2021 | OriginalPaper | Chapter

12. Towards Sustainable and Adequate Pension Systems: Old-Age Pension Reforms After Economic Transition and EU Accession in Central-Eastern and South-Eastern Europe

Author : Agnieszka Chłoń-Domińczak

Published in: Does EU Membership Facilitate Convergence? The Experience of the EU's Eastern Enlargement - Volume II

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

Countries in Central, Eastern and South-Eastern Europe (CESE) face the challenge of becoming “demographically old before being economically rich”. Ensuring the long-term stability and adequacy of pension systems was one of the most important tasks that these countries faced following economic transition. The pension systems struggled with reduced societal trust as well as many weaknesses, including a lack of targeting, weak administration as well as adverse incentives. This chapter discusses the phases of evolution of pension systems in CESE countries in the context of international convergence. The first one is the period of retrenchment of the pension systems during the market-driven economic changes. The second phase is the multi-pillar reforms with privatisation, towards a liberal market orientation. The third phase is rebalancing of pension systems that followed EU accession leading to convergence with the EU policies. It also outlines the main challenges ahead of the pension systems in the CESE countries.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

previous chapter The Impact of the EU on National Fiscal Governance Systems

A statutory funded pension scheme (defined contribution (DC), fully funded) was also introduced in Czechia from the beginning of 2013 (as a voluntary partial opt-out from the first pillar), but it closed at the end of 2015.

See Sect. 12.3 for details.

According to the ESSPROSS definition this includes coverage of risks and needs associated with sickness/healthcare and invalidism, disability, old-age, parental responsibilities, the loss of a spouse or parent, unemployment, housing and social exclusion. Further information is available at: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Social_protection_statistics_-_background

According to Eurostat people are considered at risk of monetary poverty when their equivalised disposable income (after social transfers) is below the at-risk-of-poverty threshold. This is set at 60% of the national median equivalised disposable income after social transfers.

Barr, N. (1994). Labour Markets and Social Policy in Central and Eastern Europe. The Transition and Beyond. London: Oxford University Press.

Beblavý, M. (2011). Why Has the Crisis Been Bad for Private Pensions, But Good for the Flat Tax? The Sustainability of ‘Neoliberal’ Reforms in the New EU Member States (CEPS Working Document).

Bielawska, K., Chłoń-Domińczak, A., & Stańko, D. (2017). Retreat from Mandatory Pension Funds in Countries of the Eastern and Central Europe in Result of Financial and Fiscal Crisis: Causes, Effects and Recommendations for Fiscal Rules. Instytut Zarządzania Ryzykiem Społecznym.

Bielawska, K., Chłoń-Domińczak, A., & Stańko, D. (2018). Retreat from Mandatory Pension Funds in Countries of the Eastern and Central Europe in Result of Financial and Fiscal Crisis: Causes and Effects. Paper Presented at 2018 ASSA Meeting in Philadelphia.

Cerami, A. (2010). The Politics of Social Security Reforms in the Czech Republic, Hungary, Poland and Slovakia. In B. Palier (Ed.), A Long Goodbye to Bismarck? The Politics of Welfare Reform in Continental Europe (pp. 233–253). Amsterdam University Press. Retrieved from http://dare.uva.nl/cgi/arno/show.cgi?fid=183117.

Chłoń, A. (2000). Pension Reform and Public Information in Poland (World Bank SP Discussion Paper).

Chłoń-Domińczak, A. (2016). Reversing the 2013 Retirement Age Reform in Poland. ESPN Flash Report.

Chłoń-Domińczak, A., Franco, D., & Palmer, E. (2012). The First Wave of NDC Reforms: The Experiences of Italy, Latvia, Poland, and Sweden. In R. Holzmann & E. Palmer (Eds.), Nonfinancial Defined Contribution Pension Schemes in a Changing Pension World (pp. 31–84). The World Bank. https://doi.org/10.1596/9780821388488_CH02.

Datz, G., & Dancsi, K. (2013). The Politics of Pension Reform Reversal: A Comparative Analysis of Hungary and Argentina. East European Politics. https://doi.org/10.1080/21599165.2012.759940.

Esping-Andersen, G. (1990). The Three Worlds of Welfare Capitalism. Princeton: Princeton University Press.

European Commission. (2018). Pension Adequacy Report 2018: Current and Future Income Adequacy in Old Age in the EU (Volume 2 – Country Profiles (Vol. II)). Luxembourg: Publications Office of the European Union. https://doi.org/10.2767/1907.CrossRef

European Commission DG ECFIN. (2009). The 2009 Ageing Report: Economic and Budgetary Projections for the EU-27 Member States (2008–2060). European Economy, 2, 27. https://doi.org/10.2765/80301.CrossRef

European Commission DG ECFIN. (2018). The 2018 Ageing Report. Economic & Budgetary Projections for the 28 EU Member States (2016–2070) (European Economy Institutional Paper No. 079). https://doi.org/10.2765/615631.

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

Grech, A. G. (2018). What Makes Pension Reforms Sustainable. Sustainability (Switzerland), 10(8). https://doi.org/10.3390/su10082891.

Guardiancich, I. (2009). Pension Reforms in Central, Eastern and Southeastern Europe: Legislation, Implementation and Sustainability. Doctoral thesis, European University Institute. https://doi.org/10.2870/1700.

Han, T., & Stańko, D. (2018). 2018 Update One IOPS Work on Fees and Charges (IOPS Working Papers on Effective Pension Supervision No. 32 OECD). Paris.

Heneghan, M., & Orenstein, M. A. (2019). Organizing for Impact: International Organizations and Global Pension Policy. Global Social Policy, 146801811983473. https://doi.org/10.1177/1468018119834730.

Ionescu, L., & Robles, E. A. (2014). Update of IOPS Work on Fees and Charges (20).

Jacoby, W. (2008). Minority Traditions and Post-Communist Politics: How Do IGOs Matter? In M. A. Orenstein, S. Bloom, & N. Lindstrom (Eds.), Transnational Actors in Central and East European Transitions. Pittsburgh: University of Pittsburgh Press.

Kvist, J., & Saari, J. (Eds.). (2007). The Europeanisation of Social Protection. Bristol: Bristol University Press. https://doi.org/10.2307/j.ctt9qgx97.

Müller, K. (1999). The Political Economy of Pension Reform in Central-Eastern Europe. Cheltenham: Edward Elgar Publishing Limited.

Müller, K. (2003). Privatising Old-Age Security: Latin America and Eastern Europe Compared. Aldershot: Edward Elgar Publishing Limited.

Orenstein, M. A. (2008). Privatising Pensions: The Transnational Campaign for Social Security Reform. Princeton: Princeton University Press.CrossRef

Palacios, R., & Whitehouse, E. (1998). The Role of Choice in the Transition to a Funded Pension System (Social Protection Discussion Paper Series No. 9812), pp.1–8. https://doi.org/10.5897/JAERD12.088.

Pierson, P. (2001). Austerity: Coping with Permanent in Affluent Welfare State Restructuring Democracies. The New Politics of the Welfare State, 410–457. https://doi.org/10.1093/0198297564.003.0014.

Schwarz, A., & Arias, O. (2014). The Inverting Pyramid. Pension Systems Facing Demographic Challenges in Europe and Central Asia. Washington, DC: World Bank.CrossRef

Sobotka, T. (2003). Re-Emerging Diversity: Rapid Fertility Changes in Central and Eastern Europe After the Collapse of the Communist Regimes. Population (English Edition), 58(4–5), 451–486. https://doi.org/10.2307/3246652.CrossRef

World Bank. (1994). Averting the Old Age Crisis: Policies to Protect the Old and Promote Growth. Washington, DC: World Bank. Retrieved from http://documents.worldbank.org/curated/en/973571468174557899/Averting-the-old-age-crisis-policies-to-protect-the-old-and-promote-growth.CrossRef

Wóycicka, I., & Grabowski, M. (2007). Poland – Redefining Social Policies. In J. Kvist & J. Saari (Eds.), The Europeanisation of Social Protection. Bristol: Bristol University Press. https://doi.org/10.2307/j.ctt9qgx97.

Title: Towards Sustainable and Adequate Pension Systems: Old-Age Pension Reforms After Economic Transition and EU Accession in Central-Eastern and South-Eastern Europe
Author: Agnieszka Chłoń-Domińczak
Publisher: Springer International Publishing
Book: Does EU Membership Facilitate Convergence? The Experience of the EU's Eastern Enlargement - Volume II
Print ISBN: 978-3-030-57701-8

Electronic ISBN: 978-3-030-57702-5

Copyright Year: 2021
DOI: https://doi.org/10.1007/978-3-030-57702-5_12