Pension Developments and Reforms in Transition Economies

By Carlo Cottarelli, Luis M. Cubeddu, M. Cangiano

October 1, 1998

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Carlo Cottarelli, Luis M. Cubeddu, and M. Cangiano Pension Developments and Reforms in Transition Economies, (USA: International Monetary Fund, 1998) accessed September 18, 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 reviews developments in pension systems in 11 transition economies during the 1990s, highlighting the forces behind their rapid weakening. It focuses on the challenges these systems face—including those arising from demographic factors—and discusses why most transition countries are considering shifting, or have already shifted, from traditional defined-benefit pay-as-you-go systems to defined-contribution fully funded systems. Finally, the paper looks at the main options that arise in introducing fully funded components, including the relative mix between funding and pay-as-you-go, and the speed of the transition toward the new system.

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

Keywords: Aging, Baltics, Central and Eastern Europe, Central Asia, Early retirement, Eastern Europe, Labor force, PAYG system, Pension reforms, Pension spending, Pension system, Pensions, Rate of return, Retirement, Retirement age, Social Protection, System dependency ratio, Transition Economies, Transition economy, Wage bill, Wages, Western Europe, WP

Publication Details

Pages:

47
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1998/151
Stock No:

WPIEA1511998
ISBN:

9781451922912
ISSN:

1018-5941

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