Guven, UfukHolzmann, Robert2012-03-192012-03-192009978-0-8213-7781-9https://hdl.handle.net/10986/2610All of the former transition economies in Central, Eastern, and Southern Europe (CESE) inherited from the era of central planning traditional defined-benefit pension systems financed on a pay-as-you-go basis. Like many pay-as-you-go public pension systems elsewhere in the world, CESE pension systems were in need of reforms to address short-term fiscal imbalances and longer-term issues relating to population aging. Reforms were also needed to adjust benefit and contribution structures to meet the challenges of-as well as to take advantage of opportunities relating to the transition to a market economy, including the widespread adoption of multiplier designs with improved risk-sharing across funded and unfunded pillars. By 2006, most countries in Europe and Central Asia had introduced a voluntary private pension scheme. By 2008, 14 countries roughly half of all countries in the region had legislated mandatory private pension schemes, and all but one of those schemes (the one in Ukraine) had been introduced. These reforms shared a number of common objectives, in particular putting the systems on a sounder financial footing and better aligning them with the (very different) incentives of a market economy. This report is organized as follows. The first section discusses the motivation for reform across the eight countries included in the study against the backdrop of the regional (and global) trend toward multiplier pension arrangements. The second section summarizes the key provisions of the reformed systems in the eight countries within the World Bank's five-pillar framework for pension system design. The third section summarizes pension system performance against the two crucially important dimensions of adequacy and sustainability. The last section provides some policy recommendations for addressing gaps in reforms and taking advantage of further opportunities.CC BY 3.0 IGOACCUMULATION PERIODANNUAL RATE OF RETURNANNUITIESANNUITYARBITRAGEASSET MANAGEMENTAVERAGE BENEFITSAVERAGE EARNINGSAVERAGE WAGEBANKSBASIC BENEFITBASIC PENSIONBENEFICIARIESBENEFICIARYBENEFIT ADJUSTMENTBENEFIT FORMULABENEFIT FORMULASBENEFIT INDEXATIONBENEFIT LEVELBENEFIT RATECALCULATIONSCAPITAL ACCUMULATIONCAPITAL GAINSCASH PAYMENTSCONSUMERCONSUMER PRICE INDEXCONTRIBUTIONCONTRIBUTION PAYMENTSCONTRIBUTION RATECONTRIBUTION RATESCONTRIBUTION RECORDCONTRIBUTION SCHEMECONTRIBUTION SCHEMESCONTRIBUTION SYSTEMCONTRIBUTIONSCOPYRIGHT CLEARANCECOPYRIGHT CLEARANCE CENTERCURRENCYDEFINED BENEFITDEFINED-BENEFIT PENSIONDEFINED-BENEFIT SCHEMEDEFINED-BENEFIT SCHEMESDEMOGRAPHICDEMOGRAPHIC CHANGESDEPENDENCY RATIODEPENDENCY RATIOSDEVELOPMENT FINANCEDISABILITIESDISABILITYDISABILITY BENEFITSDISABILITY INSURANCEDISABILITY PENSIONDISABILITY PENSIONSDIVERSIFICATIONDIVORCEDOMESTIC MARKETEARNINGSEARNINGS-RELATED PENSIONELDERLYEMPLOYEEEMPLOYER CONTRIBUTIONSFAMILY MEMBERFERTILITYFERTILITY RATESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL MARKETFINANCIAL MARKET DEVELOPMENTFINANCIAL SECTORSFINANCIAL SERVICESFINANCIAL SUSTAINABILITYFINANCIAL SYSTEMSFISCAL SUSTAINABILITYFOREIGN CURRENCIESFULL-CAREER WORKERSFUND ASSETSFUNDED COMPONENTFUNDED PENSIONFUNDED SCHEMESGOVERNMENT POLICYGROSS DOMESTIC PRODUCTGUARANTEED BENEFITHEALTH CAREHEALTH INSURANCEHEALTH INSURANCE FUNDHOUSEHOLD INCOMEINCOME GROUPSINCOME LEVELINCOME REPLACEMENTINCOME TAXINCOME TAX BASEINCOME TAXESINDIVIDUAL ACCOUNTSINDIVIDUAL SAVINGSINFLATIONINSURANCE COMPANIESINSURANCE SCHEMESINTERNATIONAL BANKINTERNATIONAL LABOUR ORGANIZATIONINVESTINGINVESTMENT RETURNSJOINT ANNUITYLABOR FORCELABOR FORCE PARTICIPATIONLEVEL OF PENSION EXPENDITURESLIFE EXPECTANCYLIFE INSURANCELIFE INSURANCE COMPANIESLIFETIMELIFETIME EARNINGSLONG-TERM CARELOW-INCOMELUMP SUMLUMP-SUM DISTRIBUTIONSMANDATORY PILLARSMARKET CONDITIONSMARKET ECONOMYMIDDLE-INCOME COUNTRIESMINIMUM INCOMEMINIMUM OLD-AGE PENSIONMINIMUM PENSIONMINIMUM PENSIONSMINIMUM PERIODMINIMUM WAGEMULTIPILLAR PENSION SYSTEMSMULTIPILLAR SYSTEMSMUTUAL FUNDSNOMINAL WAGENOMINAL WAGESNORMAL RETIREMENT AGENOTIONAL CAPITALOLD-AGE PENSIONSOUTPUTPAY-AS-YOU-GO PENSION SYSTEMSPENSIONPENSION ARRANGEMENTSPENSION BENEFITSPENSION CONTRIBUTIONSPENSION ENTITLEMENTSPENSION INCOMEPENSION POLICYPENSION PROVIDERSPENSION PROVISIONSPENSION REFORMPENSION REFORMSPENSION SCHEMESPENSION SPENDINGPENSION SYSTEMPENSION SYSTEM PARAMETERSPENSION SYSTEMSPENSION TAXATIONPENSIONABLE AGEPENSIONERSPENSIONSPERSONAL PENSIONPILLAR BENEFITSPRESENT VALUEPRICE INDEXPRICE-INDEXED ANNUITIESPRICE-INDEXED ANNUITYPRIVATE LIFE INSURANCEPRIVATE PENSIONPRIVATE PENSION FUNDSPRIVATIZATIONPUBLIC PENSIONPUBLIC PENSION SCHEMEPUBLIC PENSIONSPUBLIC SCHEMESREPLACEMENT RATEREPLACEMENT RATESRESERVE FUNDRETIREESRETIREMENTRETIREMENT AGESRETIREMENT BENEFITSRETIREMENT INCOMERETIREMENT SAVINGSSAVINGS ACCOUNTSSAVINGS PROGRAMSSECURITIESSECURITIES MARKETSSMALL ENTERPRISESSOCIAL ASSISTANCESOCIAL INSURANCESOCIAL INSURANCE FUNDSOCIAL PENSIONSOCIAL PENSIONSSOCIAL SECURITYSOCIAL SECURITY CONTRIBUTIONSSTAKEHOLDERSSTATE ENTERPRISESSTATE PENSIONSURVIVOR PENSIONSTAX ADVANTAGESTAX BENEFITSTAX DEDUCTIBLETAX PROVISIONSTAX PURPOSESTAX RATETAX REGIMESTAX RELIEFTAXABLE INCOMETRANSITION COUNTRIESUNEMPLOYMENTVOLUNTARY PENSIONVOLUNTARY RETIREMENT SAVINGSWAGEWAGE GROWTHWAGESWORKING AGEWORKING LIFEWORTHYEARS OF SERVICEWorld Bank10.1596/978-0-8213-7781-9