The path forward for sustainability of the pension system in a historical context

The long-term sustainability and stability of the pension insurance system can be provided on the basis of a pay-as-you-go system, specifically the NDC variant, which can combine the main type of solidarity (between those who can and want to be gainfully active and those for whom the insured event h...

Full description

Saved in:
Bibliographic Details
Main Authors: J. Mertl, R. Valenčík
Format: Article
Language:Russian
Published: State University of Management 2021-04-01
Series:Управление
Subjects:
Online Access:https://upravlenie.guu.ru/jour/article/view/384
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1832541305175015424
author J. Mertl
R. Valenčík
author_facet J. Mertl
R. Valenčík
author_sort J. Mertl
collection DOAJ
description The long-term sustainability and stability of the pension insurance system can be provided on the basis of a pay-as-you-go system, specifically the NDC variant, which can combine the main type of solidarity (between those who can and want to be gainfully active and those for whom the insured event has occurred) with income solidarity. When reforming the pension system in this manner the opportunity arises to begin gradual changes through fully merit system reform and therefore significantly motivating of extending the period of productivity (putting off retirement) through the upgrade of this system for persons who have reached the retirement age as specified by law.This paper aims to substantiate and explore possible changes in this direction that will not endanger anyone’s entitlements when the reforms are implemented (they have got the form of Pareto improvement), as they derive their funds by extending the time of individual productivity. To this end, the possibility of introducing an extension on top of current system of pay-as-you-go insurance, which could be entered voluntarily by persons who have already reached or are near statutory retirement age, is proposed, and modeled. The extension would operate on the principle that the paid premiums will be transformed into a lifetime annuity. The system would be significantly motivating which for most people means extending life at the fullest, associated with the option to retain beneficial social contacts and gradually relax their gainful activity without experiencing an untoward decrease in income.
format Article
id doaj-art-9ac10cf18375406da87c4d8c01f9ce8c
institution Kabale University
issn 2309-3633
2713-1645
language Russian
publishDate 2021-04-01
publisher State University of Management
record_format Article
series Управление
spelling doaj-art-9ac10cf18375406da87c4d8c01f9ce8c2025-02-04T09:04:39ZrusState University of ManagementУправление2309-36332713-16452021-04-0191404810.26425/2309-3633-2021-9-1-40-48269The path forward for sustainability of the pension system in a historical contextJ. Mertl0R. Valenčík1University of Finance and AdministrationUniversity of Finance and AdministrationThe long-term sustainability and stability of the pension insurance system can be provided on the basis of a pay-as-you-go system, specifically the NDC variant, which can combine the main type of solidarity (between those who can and want to be gainfully active and those for whom the insured event has occurred) with income solidarity. When reforming the pension system in this manner the opportunity arises to begin gradual changes through fully merit system reform and therefore significantly motivating of extending the period of productivity (putting off retirement) through the upgrade of this system for persons who have reached the retirement age as specified by law.This paper aims to substantiate and explore possible changes in this direction that will not endanger anyone’s entitlements when the reforms are implemented (they have got the form of Pareto improvement), as they derive their funds by extending the time of individual productivity. To this end, the possibility of introducing an extension on top of current system of pay-as-you-go insurance, which could be entered voluntarily by persons who have already reached or are near statutory retirement age, is proposed, and modeled. The extension would operate on the principle that the paid premiums will be transformed into a lifetime annuity. The system would be significantly motivating which for most people means extending life at the fullest, associated with the option to retain beneficial social contacts and gradually relax their gainful activity without experiencing an untoward decrease in income.https://upravlenie.guu.ru/jour/article/view/384human capitalpension systempay-as-you-go systemproductive servicesmathematical modelhealth insurancereform alternativeseducational servicessocial investmentsocial security
spellingShingle J. Mertl
R. Valenčík
The path forward for sustainability of the pension system in a historical context
Управление
human capital
pension system
pay-as-you-go system
productive services
mathematical model
health insurance
reform alternatives
educational services
social investment
social security
title The path forward for sustainability of the pension system in a historical context
title_full The path forward for sustainability of the pension system in a historical context
title_fullStr The path forward for sustainability of the pension system in a historical context
title_full_unstemmed The path forward for sustainability of the pension system in a historical context
title_short The path forward for sustainability of the pension system in a historical context
title_sort path forward for sustainability of the pension system in a historical context
topic human capital
pension system
pay-as-you-go system
productive services
mathematical model
health insurance
reform alternatives
educational services
social investment
social security
url https://upravlenie.guu.ru/jour/article/view/384
work_keys_str_mv AT jmertl thepathforwardforsustainabilityofthepensionsysteminahistoricalcontext
AT rvalencik thepathforwardforsustainabilityofthepensionsysteminahistoricalcontext
AT jmertl pathforwardforsustainabilityofthepensionsysteminahistoricalcontext
AT rvalencik pathforwardforsustainabilityofthepensionsysteminahistoricalcontext