Pension System Viability and Reform Alternatives in the Czech Republic

Considerations in Pension Reforms: A Review of the Challenges to Sustainability and Distributive Impartiality

“…Based on the premise of the closer link between contributions and benefits, private pension systems may reduce labour market distortions arising from the perceived tax character of contributions to public pension schemes (Laursen, 2000). Critics questioned this assumption arguing that the ultimate goal of a pension system is social welfare not labour supply; furthermore, the benefit delivery shift from defined benefits to defined contributions may create undesirable risks that affect social welfare.…”

Will Eastern European Migrants Happily Enter the German Pension System after the EU Eastern Enlargement?

“…This first pillar is PAYG financed and of the defined-benefit type. It mixes flat-rate and earnings-related pension benefits (Laursen, 2000). The inclusion of this basic flat rate redistributive element (CZK 1,310 per month) into the public pension system stands in contrast to the Polish or Hungarian systems where intragenerational redistribution has been transferred from the pension system to the state budget.…”

The Enlarged European Union

“…However, as the financial sustainability of the system has not been secured by the previous reforms and the deficit of the social insurance is growing, the discussion on the future direction of old-age security in the Czech Republic continues. The options include also introduction of obligatory pension funds (Laursen 2000;Lasagabaster et al 2002). …”