LATEST PENSION SYSTEM REFORMS IN EASTERN ASIA (JAPAN, S. KOREA) AND EASTERN EUROPE (LITHUANIA)

Šiame straipsnyje analizuojama prieš penkerius metus pradėta Lietuvos socialinio draudimo senatvės pensijų struktūrinė reforma, kurios metu dalis socialinio draudimo įmokų pervedama į gyventojų pasirinktus privačius pensijų fondus. Šio straipsnio tikslas - apžvelgti reformos pradžioje jai keltus tikslus, įvertinti jų pagrįstumą socialinės apsaugos ekonomikos teorijos požiūriu, išanalizuoti pradinius pensijų reformos rezultatus. Siekiant šio tikslo išanalizuotas pensijų reformų regione pobūdis, socialinio draudimo pensijų dalinio privatizavimo Lietuvoje ypatybės, kelti privatizavimo tikslai ir besiformuojanti privačių pensijų rinką Lietuvoje. Straipsnyje remiamasi pasaulyje gerai žinomų pensijų ekonomikos tyrėjų publikacijomis, pensijų reformą reglamentuojančiais Lietuvos Respublikos įstatymais, Lietuvos valstybės institucijų skelbiama ekonomine ir socialine statistika.Autoriaus atlikta analizė rodo, kad privačių pensijų fondų klientų asmeninėse kaupiamosiose pensijų sąskaitose kaupiamo turto investicijų grąža nepadengia nuostolių, kuriuos jie patirs dėl dalinio pasitraukimo iš socialinio draudimo pensijų sistemos. Straipsnyje taip pat parodyta minėtos pensijų reformos našta, kuri tenka dabartiniams pensininkams. Pagrindinė straipsnio išvada - reformos tikslai buvo per daug ideologizuoti, o pirminiai rezultatai nepalankūs nei dabartiniams, nei būsimiems pensininkams. Lietuvoje 2004 metais įvykdytos pensijų reformos analizė akademinėje literatūroje pateikiama pirmą kartą.

Toward a post‐neoliberal social citizenship?

Recasting Pensions in Europe: Policy Challenges and Political Strategies to Pass Reforms

The contemporary global debate about pension reforms is based mainly on the concern for the long-term financial viability of existing government operated pension systems. Against this background, Nigeria, Sweden and Chile responded to the challenges posed by their pension systems by initiating reforms. While Chile and Nigeria completely moved from a defined benefit system to a defined contribution system, Sweden chose a “hybrid”, a model which has received wide acclaim by social security experts. Given the interest pension systems and reforms have generated globally as well as in Nigeria, a cross-country comparative analysis is imperative to bring into sharp focus the specific differences and similarities in these three pension reforms if any. Thus, this study comparatively evaluates the Nigerian, Swedish and Chilean pension reforms as a means of enriching ongoing global debate and crosscountry comparisons on pension reform experiences. Guided by a three dimensional classification framework which describes the options available in reforming a pension system, three core benchmarks were used for this comparative analysis. These are the objective(s) of reform, the model of reform adopted, and the likely outcomes of reform vis-a-vis meeting the redistribution, saving and insurance functions of a pension scheme. Results indicate that the Chilean and Nigerian models are less likely to achieve the redistribution and insurance functions of a pension scheme while the Swedish model is better placed to achieve all the three key functions of a pension system. It is recommended that opportunities for achieving the redistribution and social insurance functions of a pension scheme should be explored in subsequent amendments to the pension legislation. Keywords : Demographic crisis, Pension reform, Public policy

Natia Kakhniashvili E-mail: Natia.kakhniashvili@tsu.ge Doctor of Business Administration Iv. Javakhishvili Tbilisi State University Tbilisi, Georgia https://orcid.org/0009-0004-0759-198X Khatuna Barbakadze E-mail: Khatuna.barbakadze@tsu.ge Candidate of Economic Sciences Iv. Javakhishvili Tbilisi State University Tbilisi, Georgia https://orcid.org/0009-0001-1670-8463 Nato Kakashvili E-mail: Nato.kakashvili@tsu.ge Candidate of Economic Sciences Iv. Javakhishvili Tbilisi State University Tbilisi, Georgia https://orcid.org/0009-0005-1399-1784 Abstract. Pension policy is a critical component of a state's social policy. Current global trends, particularly those associated with population aging, have heightened the need for effective pension system reforms. The stability and efficiency of pension systems are vital elements of a society's social welfare infrastructure, ensuring financial support for retirees and promoting their well-being in old age. However, pension systems face significant challenges due to demographic shifts, economic fluctuations, and evolving societal expectations. Traditional pension systems often struggle to fully meet the needs of retirees, and many existing schemes experience substantial volatility, jeopardizing their long-term sustainability. As a result, the need for pension system reform has become increasingly urgent. To address these challenges, states must implement more comprehensive reforms aimed at effectively modernizing their pension systems. Pension reform refers to the process by which a government or employer makes substantial changes to the structure, policies, and regulations governing pension benefits. Successful reforms typically require thorough analysis, consultation with stakeholders, and legislative action to ensure effective implementation. The pension system of Georgia has undergone several important stages of reform in recent decades. After gaining independence, the country implemented socio-economic transformations, which were accompanied by demographic aging and shifts in labor market dynamics. These changes underscored the need for reforms in the pension system. The pension system faces several significant challenges. Foremost among these is the demographic trend of an aging population coupled with a declining birth rate, which poses a serious threat to the long-term sustainability of the system. Additionally, the expanding informal labor market and high unemployment levels further complicate the situation, creating obstacles that could undermine the stability of pension benefits for future retirees. Addressing these fiscal challenges requires the implementation of innovative policies that ensure adequate retirement income for citizens while maintaining the system's viability. The reform of the pension system requires the joint participation of the government and society. The government should strengthen supervision and management, create an effective management and supervision mechanism of the pension system. Pension system reform is complex. Different countries have different levels of economic development, demographic structure, social security system, etc. Key words: pension system, reform, efficiency, risks, modernization. JEL classification: H 55, J1

Purpose: The article discusses financial aspects of the functioning of pension systems in selected countries of the European Union. Changing demographic conditions (aging populations) pose a serious challenge to the financial stability of pension systems in Europe. This article discusses the differences between the pension systems of two selected European countries - Poland and Germany - in terms of pension expenditure, the efficiency of these systems and changes in financing between 2021 and 2024. The aim of this article is to analyze the issue of financing in two representative countries: Poland and Germany, to identify differences in the pension systems in these countries, and to highlight the main challenges they face. The hypothesis is that the pension system in the European countries studied is not a sustainable pension system, assuming that the amount of pension contributions collected is sufficient to pay current pension benefits. Design/methodology/approach: The objective of the article was achieved by verifying secondary sources and conducting a comparative analysis in formal and financial terms. The article draws on literature on social security and social insurance, both in the field of economics and law. The legal sources, materials, and statistical sources were used to present the issues. In addition, materials available on the Internet, including those published by Eurostat, MISSOC, and the OECD, were used in the study. Findings: The data presented in the article concerning two representative countries of the European Union and the financial efficiency indicators of the Polish and German pension systems presented in the article confirm the hypothesis put forward in the article. Contemporary pension systems in highly developed countries are struggling with many problems, mainly resulting from demographic processes. Aging societies and declining birth rates are contributing to changes in the population structure. As a result, there is an increasing need to reform pension systems to adapt them to the current demographic situation. Every pension system reform is a long-term and multifaceted process, and there is no single universal solution that would fully resolve all problems. It is important to take into account the unique demographic, social, and economic conditions of a given country and to rely on broad social consensus. Despite the differences in institutional solutions in individual countries, both the reforms that have been implemented and those merely proposed by the European Union show a common direction of change. This consists of striving to ensure the financial stability of pension systems. More profound changes in the pension systems of European Union member states are inevitable - the pension systems need to be strengthened through broader fiscal reforms, social activation, and increased trust in the system. Research limitations/implications: The topic discussed in the article is very important in the contemporary context due to the financial deficit of social insurance. During the research, certain limitations were observed in access to information, both domestic and international, which could facilitate a more in-depth analysis of the presented issue. Practical implications: The practical consequence of balancing the pension system in Poland - as well as in other EU countries - would be the elimination of the enormous subsidies from the state budget to institutions paying out benefits. Social implications: A country that would not have to subsidize the institutions paying pension benefits could allocate those funds to other important social goals, such as education, public infrastructure, the healthcare system, and so on. Originality/value: By analyzing financing issues in two representative countries, Poland and Germany, identifying differences in their pension systems, and highlighting the main challenges they face, it is possible to better understand the different approaches to pension provision in Europe and their economic effects. Keywords: pension systems, old-age system, financial efficiency of the system, European Union. Category of the paper: Research paper.

This article aims to study the Kosovo economic transition process and its impact on the Pension system reform. The study will focus on; model of new economic building system (market liberalization, economic recovery, the concept of entrepreneurship development, system integration of economic trends in the global economy, privatization and transformation of property, social welfare, social justice), etc. During this study different theories on the transition process in the economy will be used, as well as theories on reforming the pension system in the world, which affirm the sustainability of the construction of the new economic and pension system. Methods used will serve to draw relevant conclusions as follow; heuristic, descriptive, historical, comparative, statistical. The hypothesis of this study is, "Impact of the economic reform system in Kosovo and its results in the construction of the new sustainable pension system model." Through this study conceptual changes to the economic system will be put forward, dealing with socialist and liberal philosophy, as different concepts of economic development, the role of the state or the market as a regulator of the economic system. In particular, attention is paid to the new pension system in Kosovo; the causes for reform of the pension system, reforming the pension system, the basic goals of the reform of the pension system, the types of pensions systems in the world, the conceptual basis of the construction of the pension system in Kosovo, the principles of the reform of the pension system, the regulatory framework of the new pension system in Kosovo, advantages and challenges of multi pillar pension system model, the model used for Kosovo's pension system, pension schemes in Kosovo, the efficiency of the new pension system in Kosovo, comparing the new pension system in Kosovo with pension systems of other countries in the region.

Pension reform is always the most challenging type of government reform. In this chapter, the authors analyse Taiwan's pension reform in four sections. Firstly, we provide a four-stage overview of civil service pension reform in Taiwan. Secondly, we utilise Peter Hall's ‘3-i’ interpretive framework in discussing the fourth stage of reform. Thirdly, we present the results of two surveys of sampled civil servants to demonstrate the reform's impact on the civil service system. Lastly, we want to make three critical comments on Taiwan's civil service pension system's future. (1) Tsai faces an approaching labour insurance pension bankruptcy, the low payment rate of the national pension system, and the missing financial sources for the newly established farmers’ pension system caused by the low birth rate in the past twenty-plus years. (2) Because the pension reform took away the generous pension in civil service, civil service jobs will be less attractive to younger people. (3) The pension reform deepened the social cleavage between retired KMT civil servants and the ruling DPP party, both in the sense of divided national identity and class conflict within Taiwan.

З'ясовано, що зростання витрат на фінансування пенсійних систем як Польщі, так і України відбувається через демографічну кризу, соціальні зміни та економічну кризу як на глобальному, так і національному рівнях, змушуючи до реформи цих систем. Сьогодні Україна активізує процес запровадження недержавного пенсійного забезпечення. Йдеться про систему накопичувального пенсійного забезпечення і, зокрема, про недержавну систему пенсійного забезпечення. Саме недержавне пенсійне забезпечення породжує в українському суспільстві низку питань, на які змогла відповісти своєму суспільству Польща після того, як запровадила нову пенсійну реформу. Запровадження тристовпеневої польської пенсійної системи (перший стовп – фонди установ соціального страхування, другий стовп – відкриті пенсійні фонди, третій стовп – пенсійні програми працівників, індивідуальні пенсійні рахунки) пояснило польському суспільству який вік виходу на пенсію згідно з новою пенсійною реформою, наявний мінімальний соціальний стаж у разі виходу на пенсію, чи вигідно приховувати або знижувати доходи під час декларування їх у новій польській пенсійній системі і чи будуть оподатковуватись майбутні пенсійні виплати з податку на прибуток. Отже, бачимо, що Польська тристовпенева пенсійна система є дещо подібна до трирівневої пенсійної системи, яку задекларовано в Законі України "Про загальнообов'язкове державне пенсійне страхування". Проте запровадження недержавного пенсійного забезпечення в Україні (другий та третій рівні) перебуває на початковій стадії. Для активізації системи накопичувального пенсійного забезпечення необхідний розвиток страхового ринку України, який ще мало розвинений, а тому нам треба використовувати досвід як країн Європейського Союзу, зокрема Польщі, так і інших країн світу, що досягли високих результатів у цьому питанні.

This study is a systematic analysis of the current debate in leading English-language journals about the future of social policy in an aging society. Pension systems have been reformed in most European countries in recent decades, but there are types of reforms that can shift the burden of aging to other generations. If the benefits and costs of these reforms affect generations’ perceptions of social policy in different ways, then pension reform can be used as a tool to improve not only public finances, but also intergenerational solidarity. The investigation of the relationship between different types of pension reforms and social justice is one of the tasks of this study. One of the main challenges was to understand whether the changes in social policy could intensify or reduce the conflicts between generations. The results showed that the support for social policy, which is mainly aimed at older people, has declined in most European countries, although the vast majority of people believe that the state should provide a reasonable standard of living for older people. Support for the elderly declined more in the countries that raised the retirement age and introduced multi-pillar pensions. At the same time, a well-functioning intergenerational welfare pact is not only about ensuring the well-being of older people. It is also a preference for policies that support the working population and those under working age. The rebalancing of the intergenerational welfare pact can provide a solid foundation for an adequate pension policy.

The relevance of the paper is caused by the fact that the current pension system did not satisfy either citizens, since their pensions were extremely miserable, neither employers due to the high level of contributions to the Pension Fund of the Russian Federation, nor the government, since the low level of pensions caused social and, as a consequence, political tension, nor the subjects of the Russian Federation, since the unfunded pension system obliged the regions to deduct funds from their own funds to cover pension obligations to subsidized regions. The way out of this situation is the creation of a new pension reform, which will increase the size of the pension by increasing the income of the pension system itself. The main goal of the pension reform is to increase the welfare of Russian citizens after they retire. The subject of the study is a new pension reform, the stimulus of which was to become a transition from an unfunded to a defined contribution pension system. The aim of the study is to identify the main economic reasons for creating a new pension reform. Methodology. To study the new pension reform, the main indicators are systematized: the minimum length of service for assigning an insurance pension, the amount of pension points for the period from 2015 to 2024 and subsequent years, and pension calculation formulas. Results. According to the new pension reform, the employee is encouraged to show full salary for employers to pay insurance contributions. The conditions are created to remove real wages from the “shadow”. The unfunded pension system caused social instability, caused a conflict of generations, workers and employers, destabilized the authorities. The new pension reform is designed to provide conditions for mutual assistance of generations and social partnership. The unfunded pension system led to the fact that pension payments were a heavy burden on the economy. The new pension system, at the expense of the funded part of the insurance contribution, creates an investment resource of “long money” (with a demand period of 25-30 years). Thus, the pension system not only serves elderly citizens, but also really works to develop the domestic economy.

Recent debates about the pension reform in France emphasized the key role played by concerns for social justice. This paper argues that, from the perspective of social justice, both the existing pension system and the universal pension point system are missing the main target in terms of social injustice: the unfair situation faced by individuals who die prematurely, before reaching the retirement age. Those persons are victims of a double penalty. On the one hand, they suffer from a premature death, which prevents them from realizing their life-goals; on the other hand, those persons contribute to the pension system during their career, but are dead before enjoying the retirement period. We argue that this double penalty is not due to fatality: the structure of existing pension systems tends to exacerbate the undesirable consequences of a premature death. We show that social justice requires nothing less than to reverse pension systems, that is, to allow individuals to be retiree before starting their career. Such a reverse pension system, which amounts to provide a universal pension to all young adults ? while leading to postpone the age of exit from the labor market ? would contribute (at least partly) to free the unlucky short-lived from the double penalty faced under the standard or the reformed pension system.

1. Introduction and Overview Katja Hujo PART I: POLITICAL ECONOMY ISSUES IN PENSION REFORM 2. Pension Privatization and Economic Development in Central-Eastern European Pension Reform Katharina Muller 3. Pension Schemes and Pension Reforms in the Middle East and North Africa Markus Loewe 4. The Reform of the Civil Service Pension Programme in Korea: Changes and Continuity Huck-ju Kwon PART II: PENSION SYSTEM AND REFORM IN THE BRICS 5. Recent History, Perspectives and Challenges to Pension Policy: The Brazilian Case Marcelo Abi-Ramia Caetano 6. Social Security Reform and Economic Development: The Case of India Mukul G. Asher and Azad Singh Bali 7. Towards Universal Coverage: A Macro Analysis of China's Public Pension Reform Lianquan Fang 8. The Private Affairs of Public Sector Pensions in South Africa: Debt, Development and Corporatization Fred Hendricks PART III: BRINGING THE STATE BACK IN 9. Pension Reform in Bolivia: Two Models of Income Security in Old Age Peter Lloyd-Sherlock and Kepa Artaraz 10. Pension Reform in Chile and Argentina: Towards More Inclusive Protection Katja Hujo and Mariana Rulli 11. Conclusions Katja Hujo

In 1998, Hungary started a pension reform, which involved partial privatisation of the system and partial introduction of the fully funded (FF) scheme. The reform aimed to improve the financial sustainability, the incentive structure, and the transparency of the system. It also aimed to achieve the system's fairness by separating the principles of“social solidarity”and“social insurance”.But, after the FIDESZ-led government came to power, the pension reform was not carried out as scheduled. The FIDESZ-led government made some institutional changes that partially reversed the 1998-reform.This article examines the original reform plan and institutional changes under the FIDESZ-led government from three viewpoints: 1) financial sustainability of the pension system; 2) incentive structure and the system's transparency; and 3) the system's fairness. We also evaluate pension reforms carried out since mid-1990s in relation to the processes of system transformation and EU accession.By investigating institutional changes in detail, we show the 1998 pension reform was inadequate to its three purposes mentioned above, because it incorporated measures softening the shocks expected from the original reform plan. Although there is no doubt that the 1998 pension reform was a drastic one, actors had to make numerous compromises during in the agreement formation process and the legislation process. Consequently, the system maintained a larger scale of redistribution than originally proposed by the Ministry of Finance, the Ministry of Welfare and the PIF (Pension Insurance Fund) self-government.We also show that the changes made by the FIDESZ-led government resulted not from differences in thinking about pension systems but from populist politics that was imposed heavier burden on both contributors and pensioners.We conclude by pointing out there are many unsolved problems, opacities and uncertainties regarding the future course of Hungary's pension system reform.

The pension system and pension funds are important elements of the economic system. Their functioning is analysed not only by lawyers and economists but also by employers, employees and politicians. The relationship between the pension system and the fiscal system is important for every country since the standard of living but also the functioning of the labour market is strongly affected by the level of pension contributions.The paper presents the evaluation of the relationship between recent legal changes in and functioning of Open Pension Funds in Poland. The results of performed analysis show that the legal changes introduced in 2011-2014 lead to slow reversal of the capital part of the Polish pension system.