Pension System Viability and Reform Alternatives in the Czech Republic

Author/Editor:

Thomas Laursen

Publication Date:

January 1, 2000

Electronic Access:

Free Full Text (PDF file size is 1516 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The finances of the Czech pension system have deteriorated markedly in recent years and the aging population will add further strains in the future. The system is also burdened by significant distortions and disincentive effects. This paper assesses the current pay-as-you-go (PAYG) system, including its long-run viability, and discusses reform options. It concludes that alterations to the basic PAYG parameters can go a long way toward addressing the problems, although more systemic changes—such as pre-funding, strengthening the link between contributions and benefits, and diverting part of the pension contributions to a mandatory, private pension savings pillar—could also help.

Series:

Working Paper No. 00/16

Subject:

English

Publication Date:

January 1, 2000

ISBN/ISSN:

9781451843392/1018-5941

Stock No:

WPIEA0162000

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

44

Please address any questions about this title to publications@imf.org