Abstract:The article explores the initial macro-financial performance of partial pension system "privatizations" -involving privately-managed individual retirement savings accounts (IRAs) -undertaken in many emerging European countries. Using empirical data for a period of close to a decade, the evidence shows that returns on privately-managed IRAs have been below the implicit rate of return of public pay-asyou-go (PAYG) systems. High operating costs and undeveloped capital markets are identified as major contributing … Show more
“…Also, through analysing the Kosovo pension schemes we will further reveal the challenges that post-conflict and new states have in the process of establishing welfare state systems as a part of their EU integrative processes. While, we note the growth of research in the field of EU pension concepts and their implementation in Western Balkan countries (Altiparmakov 2011, Altiparmakov 2013, Demi 2015, Mustafai 2017) research on the Kosovo pension schemes remains limited. This is due to the very specific position of Kosovo in relation to EU processes.…”
Pension Funds are a novelty in the global arena and certainly an innovation in the newly established Kosovo pension system. After the 1999 conflict, first the international community and later the Kosovo authorities have undertaken state and institution building efforts in order to normalize all sectors of social and institutional life. To date, the Kosovo authorities have progressed in the process of the establishment of actual Pension Funds. However, they are still facing challenges in implementing the newly established legal framework, setting up the institutions, and establishing adequate processes related to the functioning of pension funds. In 2015, the Kosovo authorities signed the Stabilization and Association Agreement with the European Union (EU) as the first step towards the still-distant prospect of EU membership. As such, the Kosovo authorities need to undertake comprehensive and deep reforms of its legal and intuitional framework. The main purpose of this paper is to identify the advantages, risks and challenges of integrating the EU DB and DC concept of Pension Funds in Kosovo as a part of its efforts towards EU integration. Through a comparative approach of the EU DB and DC concept of Pension Funds and the newly developed pension schemes in Kosovo, I aim to answer the question: is it possible to implement the very high standards for Pension Funds developed by
“…Also, through analysing the Kosovo pension schemes we will further reveal the challenges that post-conflict and new states have in the process of establishing welfare state systems as a part of their EU integrative processes. While, we note the growth of research in the field of EU pension concepts and their implementation in Western Balkan countries (Altiparmakov 2011, Altiparmakov 2013, Demi 2015, Mustafai 2017) research on the Kosovo pension schemes remains limited. This is due to the very specific position of Kosovo in relation to EU processes.…”
Pension Funds are a novelty in the global arena and certainly an innovation in the newly established Kosovo pension system. After the 1999 conflict, first the international community and later the Kosovo authorities have undertaken state and institution building efforts in order to normalize all sectors of social and institutional life. To date, the Kosovo authorities have progressed in the process of the establishment of actual Pension Funds. However, they are still facing challenges in implementing the newly established legal framework, setting up the institutions, and establishing adequate processes related to the functioning of pension funds. In 2015, the Kosovo authorities signed the Stabilization and Association Agreement with the European Union (EU) as the first step towards the still-distant prospect of EU membership. As such, the Kosovo authorities need to undertake comprehensive and deep reforms of its legal and intuitional framework. The main purpose of this paper is to identify the advantages, risks and challenges of integrating the EU DB and DC concept of Pension Funds in Kosovo as a part of its efforts towards EU integration. Through a comparative approach of the EU DB and DC concept of Pension Funds and the newly developed pension schemes in Kosovo, I aim to answer the question: is it possible to implement the very high standards for Pension Funds developed by
“…The inadequate introduction of individual private-sector pension accounts in many European developing countries stems from high operating costs and unhedged capital markets. These conclusions are based on empirical data for one decade in developing countries that have privatised retirement systems (Altiparmakov, 2011). The Western Balkans' pension system analysis suggests that those countries that have not introduced a three-pillar pension system do not have to do that yet, but focus on improving the efficiency of existing pay-as-you-go systems (Bartlett & Xhumari, 2007).…”
Section: Sector For Voluntary Pension Funds In Serbiamentioning
confidence: 99%
“…However, well known is that pensioners are vulnerable and disadvantaged groups, and in 2014 7.9% of the poor in the age group of 46-64 years, and 7.4% of the poor in the group of 65 years and more, so it is necessary to take into new reforms to order to improve that facts (Djukic, Balaban & Radisavljevic, 2017). Many authors (Bartlett & Xhumari, 2007;Altiparmakov, 2011;Altiparmakov, 2013) agree that, as the reform continues, Serbia should focus on parametric changes of the first pillar and the adequate integration of voluntary pension funds into the pension system of Serbia.…”
Section: Sector For Voluntary Pension Funds In Serbiamentioning
Following the successful implementation of the Chilean reform, the World Bank proposed a solution from three pillars of the pension system: compulsory state, compulsory private and voluntary private pension insurance. Serbia, like many other developed and undeveloped countries, has only adopted the third pillar, in addition to the already existing state. The introduction of compulsory private insurance was also considered, however, there are no market conditions or financial possibilities for achieving this idea. Voluntary pension funds in Serbia were introduced by the 2005 laws. There are seven voluntary pension funds in Serbia, managed by four management companies. So far, the funds have achieved positive yields, although due to limited investment opportunities, these rates were very modest. In addition to limited investment opportunities, one of the problems is the accumulation of funds. The problem of population savings has many sides, and it is certain that some of the causes can be sought in bad experiences from the past. The paper analyzes the limitations and possibilities for further development of private pension funds.
This article offers a critical analysis of the methods by means of which data relating to the performance of second pillar pension schemes are collated, compared and reported. This is done with regard to the performance of mandatory private second pillar pension funds in Eastern Europe. By critically examining data published in a number of World Bank studies, and through the identification of data problems and irregularities, the article argues that a much more elaborate and transparent approach to the collation, comparative analysis and reporting of data is needed. Required is the establishment of a consensus regarding what should represent a robust basis for making credible policy recommendations, not least with regard to pension re-reforms in the countries of Eastern Europe and elsewhere. In the absence of such a consensus, unresolved data problems and irregularities may potentially continue to influence the formulation of incomplete national policy conclusions regarding the performance of second pillar pension funds and, in turn, the ability of policymakers to evaluate appropriately the need for, and assess the feasibility of implementing in a sustainable manner, pension re-reform.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
