Review article
https://doi.org/10.3935/rsp.v25i3.1486
Destimulative Legislative Framework as the Cause of Failure of Voluntary Pension Schemes: A Montenegrin Case Study as an Indicator of the Relevance of Financial Incentives
Vladimir Savković
; Pravni fakultet Univerziteta Crne Gore, Podgorica, Crna Gora
Nikola Dožić
; Pravni fakultet Univerziteta Crne Gore, Podgorica, Crna Gora
Abstract
This paper presents a research having two closely related aims. First, to prove that the destimulative regulatory framework, and in that context the absence of financial incentives for members in particular, is the principal cause for the failure of voluntary pension insurance in Montenegro. Second, to establish within the given methodological framework that financial incentives are one of the key success factors of voluntary pension insurance schemes. The research itself was structured so as to exploit two key circumstances. One being that Montenegro is a rare example of a country providing no financial incentives for investing in voluntary pension funds and the other being that the indicators of the remaining key success factors of voluntary pension funds - both in Montenegro and the rest of the ex-Yugoslav countries being the object of comparative analysis – are of approximately similar values. Thanks to this, in the research the authors manages to isolate a strong negative effect of the absence of regulatory incentives on the success of voluntary pension scheme in Montenegro. In doing so, they managed to confirm the primary two hypotheses about the cause for the failure of the Montenegrin system and the relevance of financial incentives for the development of voluntary pension insurance.
Keywords
voluntary pension insurance; legislative framework; financial incentives; key success factors; Montenegro; ex-Yugoslav countries
Hrčak ID:
215671
URI
Publication date:
24.12.2018.
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