INTERGENERATIONAL SOLIDARITY IN PENSION SYSTEMS

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F49777513%3A23510%2F21%3A43960659" target="_blank" >RIV/49777513:23510/21:43960659 - isvavai.cz</a>

Result on the web

<a href="https://phd-konference.fm.vse.cz/wp-content/uploads/2021/01/Abstract-Proceedings-FMSCICON2020.pdf.pdf" target="_blank" >https://phd-konference.fm.vse.cz/wp-content/uploads/2021/01/Abstract-Proceedings-FMSCICON2020.pdf.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

INTERGENERATIONAL SOLIDARITY IN PENSION SYSTEMS

Original language description

Population ageing is a crucial trend in society and the form of financing is becoming an important issue, especially for public schemes. The sustainability of pension schemes is important for their continuation. Pension schemes have two forms of pension plans – defined benefit (DB) and defined contribution pension plan (DC). The latter is defined by Musgrave (DM) and is based on the Musgrave rule (the ratio between average pension and average wage). The objective of this contribution is to analyse a link between expected demographic changes and changes in the pension parameters of public PAYG schemes concerning intergenerational solidarity. This analysis is then applied to cases in Czechia and Slovakia. First, a literature review is used to introduce the concept of financing pension schemes and the design of pension plans. Qualitative research is used for the calculation of DB and DC pension plans and the Musgrave rule in the DM pension plan. The data for the projection of pension plans is from the Czech Statistical Office and the Statistical Office of the Slovak Republic. Population ageing is a current trend in Czechia and Slovakia, which means that both states will have to take advantage of rate changes in their pension plans in the future. In the case of Slovakia, the change is more needed than for Czechia, where the current situation is relatively favourable. Evaluating the development of parameters is important for a timely response to ageing development. DB and DC pension plans provide basic information for policy-makers because they provide boundary analysis for setting the contribution rate and benefit ratio. On the other hand, the Musgrave rule respects ageing concerning the Musgrave ratio.

Czech name

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Czech description

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Type

O - Miscellaneous

CEP classification

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OECD FORD branch

50204 - Business and management

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2021

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů