Review article
https://doi.org/10.5559/di.20.1.06
Pension System Reform Policies: Comparative Analysis of Croatia, Slovenia and Serbia
Filip DUJMOVIĆ
orcid.org/0000-0002-7806-5096
; Croatian Pension Insurance Institute – Central Office, Zagreb
Abstract
The main subject in this paper is the transformation of the
pension systems in Croatia, Slovenia and Serbia, witch
followed after Yugoslavia broke up. The process of establishing
the new pension system was made on the foundations of the
PAYG system, which was effective in the whole territory of
former Yugoslavia. The outcomes of these reforms were
different despite the influence of the World Bank advice (multi
pillar system, transferring the financial base from government
to individual, diversification of financial investment). In the
paper, the emphasis is on the demographic and financial
sustainability with many statistical data. It is concluded that
Croatia is trying to resolve the pension system problems by
introducing the mandatory funded pillar scheme, which must
not be abandoned because of the transitional cost over the
years, which would then have been futile. Slovenia introduced
only the voluntary funded pillar, but because of bad
demography in the future, the first pillar might become a large
burden. Serbia also introduced only the voluntary funded
pillar, but the reason for abandoning the idea of introducing
the mandatory funded pillar was the inability to fund the
transitional costs. Nevertheless, this option is not yet completely abandoned. The success of the pension reform will
be shown in the future when the workers who participated in
the new systems most of their working lives become retired.
Keywords
pensions; pension reform; Croatia; Slovenia; Serbia
Hrčak ID:
65354
URI
Publication date:
17.3.2011.
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