Download or read book Private Pension Funds in Hungary written by Dimitri Vittas and published by World Bank Publications. This book was released on 1996 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Private Pension Funds in Hungary Early Performance and Regulatory Issues written by Dimitri Vittas and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: August 1996 The early performance of Hungary's voluntary private pension funds suggests that concerns about Hungary's ability to implement successful pension reform may be exaggerated. Despite the limited scope resulting from the high payroll taxes for the compulsory, unfunded public pillar in Hungary's pension system, the early performance of the voluntary private pension funds has been encouraging and in many respects better than expected. Investment returns have been well above the rate of inflation and participation has expanded rapidly. But, Vittas argues, the sector is highly fragmented and there are several regulatory weaknesses (although action is already under way to remedy some of them): * No compulsory use of custodian and licensed asset managers. * Use of book values and cashflow accounting rather than market values. Market valuation on mutual fund principles would allow more meaningful rates of return to be reported and would avoid penalizing workers who transfer their accounts. * Costly tax treatment that benefits high income earners but provides no incentives to nontaxpayers. * Infrequent statements and inadequate information disclosure on fund performance. * No guarantees for minimum levels of relative profitability, and a need for strengthened and more effective supervision. The potential of the private pension funds will clearly remain limited without systemic reform. Hungary's pension system suffers from the same problems that afflict most pay-as-you-go (PAYG) systems in Eastern Europe: high system dependency ratios, low retirement ages, lax criteria for disability pensions, increasing evasion, heavy pension costs, and large deficits. In May 1996, Hungarian authorities decided to create a mixed system with two mandatory pillars and one or more additional voluntary pillars. The first pillar will offer a basic pension to all eligible Hungarian workers and will be organized on a PAYG basis, while the second pillar will be a fully funded, privately managed, decentralized system based on individual capitalization accounts. The private pillars should boost economic growth by developing capital markets and removing distortions in labor markets. Systemic reform faces two main regulatory challenges: whether to impose the mandate on individual workers or their employers, and how to build a mandatory pillar on institutions that have already emerged for the voluntary pillar. Vittas suggests that a workable and promising compromise could be the use of a hybrid mandate combining an employer mandate with a right for workers to opt out and join an independent fund. Most other regulatory issues would apply with at least as much severity under a compulsory private funded pillar as under a voluntary one. This paper -- a product of the Financial Sector Development Department -- is part of a larger effort in the department to study pension funds and contractual savings.
Download or read book Private Pension Funds in Hungary written by and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Main Reasons for the Transformation of Mandatory Hungarian Private Pension Funds written by Peter Novoszath and published by . This book was released on 2016 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: The main purpose of writing this paper was to provide a clear summary of the main facts and motives of restructuring the financing of Hungarian social security system which has been in process since 2010. One of the main lessons learned from the development of the Hungarian pension system so far is that the mandatory private pension funds working on the basis of a funded scheme were not able to solve the problems whose solution they were established for. In addition, they caused further problems.
Download or read book Pension Reform in Hungary written by Roberto Rezende Rocha and published by World Bank Publications. This book was released on 2001 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hungary is entering the fourth year of a multi-pillar pension reform that has proved popular among workers despite initially lukewarm support from the government that succeeded the reforming government, and despite the poor initial performance of capital markets because of Russia's crisis in 1998. Roughly half the labor force joined the new system voluntarily. Most who switched were younger than 40. Many people switched to the system because it offered more risk diversification. The pay-as-you-go (PAYG) system, which had been severely damaged by repeated manipulation of its parameters, clearly offered a low return on contributions. The new system is still predominantly PAYG. The first pillar accounts for more than two-thirds of the total contribution, but the new second pillar offers the chance of higher average returns on contributions. Most workers probably intuited the risk and returns inherent in a pure PAYG system and mixed system, including the capital market risk in the second pillar and the political risk in the PAYG pillar. The new system offers better prospects of long-run risk-adjustment returns for young workers, and most young workers effectively opted for the new system. But the new system was probably oversold as well, making older workers - who would be better off staying in the reformed PAYG system - switch too. The government has so far decided not to increase the contribution to the second pillar from 6 to 8 percent, as originally planned, so efficiency gains in labor and capital markets may also be smaller than expected. Addressing projected deficits in the PAYG system may require further adjustments, such as delaying the retirement age and shifting to indexed prices, reducing net benefits to future generations. Reform has sharply reduced the severe initial bias against future generation but hasn't eliminated it altogether. The voluntary switching strategy achieves the same outcome as a forced switch based on an arbitrarily cutoff age, while preventing legal problems and contributing to the reduction of the implicit pension debt. But it leaves a few individuals worse of the if they'd chosen their best option - a problem a well-designed public information campaign can reduce.
Download or read book How Politics and Institutions Affect Pension Reform in Three Postcommunist Countries written by Mitchell Alexander Orenstein and published by World Bank Publications. This book was released on 2000 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: During reform's three phases (commitment-building, coalition building, and implementation) there are tradeoffs among inclusiveness (of process), radicalism (of reform), and participation in, and compliance with the new system. Including more and more various veto and proposal actors, early in the deliberative process, may increase buy-in and compliance when pension reform is implemented but at the expense of faster and greater change.
Download or read book Private Pensions Series Private Pension Systems and Policy Issues written by OECD and published by OECD Publishing. This book was released on 2000-03-30 with total page 397 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides an overview of recent developments in the private pension systems of four OECD countries (Hungary, Mexico, the United Kingdom and the United States) as well as an analysis of institutional investors in Latin America.
Download or read book Pensions at a Glance 2017 written by OECD and published by Org. for Economic Cooperation & Development. This book was released on 2017-12-05 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2017 edition of Pensions at a Glance highlights the pension reforms undertaken by OECD countries over the last two years. Moreover, one special chapter focuses on flexible retirement options in OECD countries and discusses people's preferences regarding flexible retirement, the actual use of these programs and the impact on benefit levels. This edition also updates information on the key features of pension provision in OECD countries and provides projections of retirement income for today's workers. It offers indicators covering the design of pension systems, pension entitlements, the demographic and economic context in which pension systems operate, incomes and poverty of older people, the finances of retirement-income systems and private pensions.
Download or read book Pensions at a Glance 2019 OECD and G20 Indicators written by OECD and published by OECD Publishing. This book was released on 2019-11-27 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 2019 edition of Pensions at a Glance highlights the pension reforms undertaken by OECD countries over the last two years. Moreover, two special chapters focus on non-standard work and pensions in OECD countries, take stock of different approaches to organising pensions for non-standard workers in the OECD, discuss why non-standard work raises pension issues and suggest how pension settings could be improved.
Download or read book The Sustainability of the Hungarian Pension System a Reassessment written by and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper gives a reassessment of the sustainability of the reformed Hungarian pension system with a special focus on whether the introduction of the fully funded pillar in 1998 has led to any improvement in the sustainability of the pension system. After a brief description of the 1997/1998 reform of the Hungarian pension system, we present results from simulations with a revised pension model. Our results show that 1) the pension system, in its present form, is unsustainable with net implicit public liabilities in the system around 240% of GDP, unless corrective measures are taken. 2) The series of policy measures taken since the 1997/1998 reform account for nearly three-fourths of the net liability implicit in the pension system, reflecting a policy reversal: an alarming tendency of undoing the progress made by the reform in terms of improving the system & rsquo;s sustainability. 3) The funded pillar can help in lowering net implicit liabilities if the transition costs involved in the reform are financed by budgetary adjustment. 4) The returns recorded so far in the private pension funds fall short of expectations and, on the condition that these low returns persist, the second pillar is projected to provide annuities that do not make up for the reduction in benefits received from the public pillar. This conclusion is valid even if we compare a hypothetical sustainable full pay-as-you-go (payg) system with a sustainable multi-pillar system. -- ageing ; pension system ; social security ; fiscal sustainability
Download or read book Assessing Intergenerational Equity written by Róbert Gál and published by . This book was released on 2008 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Project on Intergenerational Equity (PIE) is a top-priority research project sponsored by the Ministry of Education and Science of Japan. The project was launched in 2001 by the Institute of Economic Research, Hitotsubashi University (Tokyo, Japan) and carried forward by the Center for Intergenerational Studies, newly established in 2007 within the Institute. The PIE is designated to study intergenerational issues in Japan and the World with the participation of a wide range of international reserarchers. This volume contains the research results of the project concerning Hungary.
Download or read book Private Pensions Series Supervising Private Pensions Institutions and Methods written by OECD and published by OECD Publishing. This book was released on 2004-12-03 with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt: Supervising Private Pensions: Institutions and Methods offers detailed and comparable information on the supervisory agencies, institutional design and methods in over 40 countries in the OECD area, Latin America, Eastern Europe and South-east Asia.
Download or read book Private Pensions Series OECD 2000 Private Pensions Conference written by OECD and published by OECD Publishing. This book was released on 2001-04-03 with total page 449 pages. Available in PDF, EPUB and Kindle. Book excerpt: This conference proceedings examines private pension reform in OECD countries, covering regulatory and supervisory issues, benefits, and system structure and coverage.
Download or read book Pension Yesterday Today and Tomorrow Investigation of the Hungarian Pension System written by Dóra Édua Szabó and published by . This book was released on 2013 with total page 71 pages. Available in PDF, EPUB and Kindle. Book excerpt: Die globale Krise offenbarte die Finanzierungslücke der öffentlichen Gelder. Im ungarischen Rentensystem war das Defizitproblem seit 1998 offensichtlich, als das Mehrsäulensystem eingeführt und die Rentenversicherung aus dem Staatshaushalt ausgeglichen wurde. Zur Lösung der finanziellen Schwierigkeiten verfolgte die ungarische Regierung einen drastischen Ansatz. Im Jahr 2011 wurde das akkumulierte Pensionskapital zum Staatsbudget transferiert. Ziel der vorliegenden Arbeit ist die Untersuchung der Determinanten die zu diesen drastischen Maßnahmen geführt haben und den folgenden Konsequenzen bezüglich öffentlicher Gelder und Rentenfonds. Darüber hinaus soll geprüft werden, ob dieser Ansatz geeignet war die lange ausstehenden Unstimmigkeiten der öffentlichen Säule wieder her zu stellen. Weiters ob diese Lösung auf Lange Sicht hin angemessen war oder eine kurzsichtige Entscheidung, bedingt durch politisch motivierte, anstatt umsichtig soziologische und ökonomische Überlegungen.*****The global crisis put a spotlight on the funding-gap of the public pillar. The problem of the revenue shortfall was apparent in the Hungarian pension system since 1998 when the multi-pillar system was introduced and ever since the Pension Insurance Fund was supplemented from state the budget. The Hungarian government took a drastic approach to solve the financing difficulty: In 2011, the accumulated pension capital on the private financial accounts was transferred to the state budget.The aim of the thesis is to investigate the determinants that led to this drastic measure and its implications concerning the public pillar and the private pension funds. Furthermore, to assess whether it was suitable to restore the long pending discrepancies of the public pillar, if this solution is sustainable on the long run, or if it was a short-sighted decision led by contingent political considerations rather than prudent sociological and economic considerations.
Download or read book OECD Reviews of Pension Systems Portugal written by OECD and published by OECD Publishing. This book was released on 2019-03-20 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review builds on the OECD’s best practices in pension design and provides policy recommendations on how to improve the Portuguese pension system, detailing the Portuguese pension system and its strengths and weaknesses based on cross-country comparisons. The Portuguese pension system ...
Download or read book Private Pension Systems and Policy Issues written by and published by OECD. This book was released on 2000 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt: This new OECD series is devoted to improving our understanding of private pension systems worldwide. It will provide an invaluable tool for academics, policy makers and actors in the private sector who will find in it a reference work on the main issues involved in the design, functioning, and regulation of private pension plans.
Download or read book Pensions at a Glance 2009 Retirement Income Systems in OECD Countries written by OECD and published by OECD Publishing. This book was released on 2009-10-15 with total page 283 pages. Available in PDF, EPUB and Kindle. Book excerpt: This third edition of Pensions at a Glance updates in-depth information on the key features of mandatory pension systems—both public and private—in the 30 OECD countries, including projections of retirement income for today’s workers.
