Pension Developments and Reforms in Transition Economies

Author/Editor:

Carlo Cottarelli ; Luis M. Cubeddu ; M. Cangiano

Publication Date:

October 1, 1998

Electronic Access:

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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.

Series:

Working Paper No. 1998/151

Subject:

Aging Expenditure Labor Pension spending Pensions Population and demographics Retirement Wages

English

Publication Date:

October 1, 1998

ISBN/ISSN:

9781451922912/1018-5941

Stock No:

WPIEA1511998

Pages:

47

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