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What is the cost of pension reform reversal in Slovakia and could the NDC scheme solve the fiscal imbalance of payg scheme?
Title What is the cost of pension reform reversal in Slovakia and could the NDC scheme solve the fiscal imbalance of payg scheme? Author info Ján Šebo, Daniela Danková, Ivan Králik Author Šebo Ján 1978- (34%) UMBEF15 - Katedra verejnej ekonomiky a regionálneho rozvoja
Co-authors Danková Daniela 1994- (33%) UMBEF15 - Katedra verejnej ekonomiky a regionálneho rozvoja
Králik Ivan 1992- (33%) UMBEF15 - Katedra verejnej ekonomiky a regionálneho rozvoja
Source document Pensions today : economic, managerial, and social issues. S. 116-132. - Łódź : Lodz University of Technology Press, 2021 / Friedman Joseph ; Carpio Jose Enrique Devesa ; Garcia Jose Alvarez ; Feldman Magnus ; Flaszewska Sylwia ; PenCon - Pensions Conference 2020 pensions conference Keywords dôchodky - dôchodok - pensions schémy PAYG system reformy - reforms Headings Geogr. Slovensko Form. Descr. príspevky v zborníku - proceedings papers Language English Country Poland Annotation Slovak pay-as-you-go pension scheme has been organized as a point system where the pension benefits depend partly on the life-long income of an insured person. Since 2005, part of the paid social insurance contributions is redirected into the funded pension scheme, where the savers can choose the pension fund as a vehicle for their pension savings. The financial crisis has forced government to lower the part of social insurance contributions flowing into the funded pillar and introduce balancing mechanism, where the statutory retirement age is tied to the life expectancy of a retiring population. The automatic adjustment to the retirement age was introduced in 2012 as a part of stabilization measures for public finances and came into force in 2017. Rising retirement age on average by two months annually swiftly became a nutrient medium for a political populism that turned out into reform reversal regardless the long-term consequences on pay-as-you-go pillar balance and expected pension benefits. In 2019, Slovakia abandoned the mechanism of automatic adjustment to the retirement age based on the life expectancy of retiring population and Slovak national parliament constitutionally introduced retirement age ceiling at 64 years for men with further bonification of half-year for a raised child up to three children for women. If no correction mechanisms are implemented, this reform reversal would have significant impact on future pension expenditures as well as on the level of pensions received not only from the pay-as-you-go scheme but also from the funded pillar as pointed by CBR (2018b). Seeking for the stabilization measures, introduction of the notional defined contribution (NDC) scheme emerged as a possible solution, which is being investigated by Ministry of Finance of Slovak republic. URL Link na zdrojový dokument Link na plný text Public work category AFC No. of Archival Copy 50137 Catal.org. BB301 - Univerzitná knižnica Univerzity Mateja Bela v Banskej Bystrici Database xpca - PUBLIKAČNÁ ČINNOSŤ 
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