IMF Working Papers

Financial Sustainability and Reform Options for the Albanian Pension Fund

By Volker Treichel

April 1, 2001

Download PDF

Preview Citation

Format: Chicago

Volker Treichel. Financial Sustainability and Reform Options for the Albanian Pension Fund, (USA: International Monetary Fund, 2001) accessed November 8, 2024
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

This paper studies the financial sustainability of the Albanian pension fund and assesses possible options for its reform. The paper concludes that the pension fund is not sustainable in its current form and proposes for the urban scheme a combination of parametric changes to the existing pay-as-you-go system that would be conducive to broadening the contribution base and strengthening the financial performance of the pension fund. In addition, it proposes the establishment of a voluntary funded pillar in the urban scheme. For the rural scheme, the paper concludes that it should either be merged with the scheme for the urban self-employed or be replaced by a mandatory and funded second pillar. The paper also proposes administrative reforms to strengthen revenue collections.

Subject: Aging, Expenditure, Labor, Pension spending, Pensions, Population and demographics, Retirement, Wages

Keywords: Aging, Base earnings, Contribution ceiling, Contribution rate, Coverage rate, Eastern Europe, Ensured wage, Minimum wage, Multi-pillar reforms, Parametric reforms of pension funds, Pension spending, Pensions, Reference wage, Retirement, Taxable wage range, Transition economies, Wage ceiling, Wages, Western Europe, Work force, WP

Publication Details

  • Pages:

    28

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2001/047

  • Stock No:

    WPIEA0472001

  • ISBN:

    9781451846645

  • ISSN:

    1018-5941

You May Also Be Interested In...

Republic of Tajikistan: Technical Assistance Report-Public Investment Management Assessment with the Climate Module

November 8, 2024

Kenya: Seventh and Eighth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements, Requests for Reduction of Access, Augmentation and Rephasing of Access Under the Arrangements, Modifications of Performance Criteria, Waiver of Nonobservance of Performance Criteria, and Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Kenya

November 1, 2024

Mexico: 2024 Article IV Consultation and Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Mexico

November 1, 2024

Public Investment Management Bottlenecks in Low-income Countries

November 1, 2024