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Protection mechanisms in the old-age pension systems of the CEE countries*

Published online by Cambridge University Press:  09 July 2012

MARCIN KAWIŃSKI ,
DARIUSZ STAŃKO  and
JOANNA RUTECKA
MARCIN KAWIŃSKI
Affiliation:
Department of Social Insurance, Warsaw School of Economics
DARIUSZ STAŃKO
Affiliation:
Department of Social Insurance, Warsaw School of Economics, Wisniowa Str. 41, 02-520 Warsaw, Poland (e-mail: dariusz.stanko@gmail.com)
JOANNA RUTECKA
Affiliation:
Department of Social Insurance, Warsaw School of Economics
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Abstract

Since 1990s, substantial changes in the role of the state in the social security schemes can be observed in the countries of the Central and Eastern Europe (CEE). While the general framework of social benefits in the CEE countries is still defined by the state, more and more often the task of provision of social security is transferred to the private entities. Such privatization of social policy makes the need for protection mechanism and some state guarantees even stronger. It is still the state that is responsible for the final outcome of social security systems so that is why governments are directly providing or indirectly creating safety mechanisms built-in the private market mechanism used for social purposes. The paper surveys various types of the protection mechanisms in selected CEE countries that exist in the important and already most privatized element of the social security system – the pension system. While describing the safety measures and possible guarantees, special attention is paid to the new forms that have been built up recently. The paper covers both mandatory and voluntary pension markets and identifies present and possible threats in the existing frameworks that can harm the social security. The paper concludes with general assessment and policy recommendations.

Keywords

H55G23Protection mechanismspension systempension reformfunded pension funds
Type
Articles
Information
Journal of Pension Economics & Finance , Volume 11 , Issue 4 , October 2012 , pp. 581 - 605
Copyright
Copyright © Cambridge University Press 2012

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Footnotes

*

The authors wish to thank two anonymous referees who provided a number of useful suggestions. We are grateful to respondents to our questionnaire – Mihai Bobocea, Damir Grbavac, Igor Guardiancich, Ilona Juhász, Stoian Kramarski, Audrone Morkuniene, Csaba Nagy, Vidija Pastukiene, Jiří Rusnok and Ona Stravinskaite for their valuable inputs.

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