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Considerations Regarding the Coordination of Pension Funds of the Member States of EU

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  • RISTI Lucia
  • CUC Lavinia
  • PANTEA Mioara

    ()
    (University „Aurel Vlaicu” of Arad
    University „Aurel Vlaicu” of Arad
    University „Aurel Vlaicu” of Arad)

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    Abstract

    The compulsory contributions for social security represent the group of revenues with the highest weight in the GDP of EU and determined the accentuation of fiscal pressure in the last decades. The relative level of contributions differs from a member state to another because of the conceptions and different historical traditions regarding the social security policies and funding sources. The factors that determined the general increase of the weight of contributions for social security are the tendency of increasing the weight of old age population, increasing the expenses with the health care, the policies of insurances of pensions that do not correspond any more to the new demographic and economic realities. The systems of insurances of pensions based on the support by the active generation by the payment of contributions, pensions for the inactive generation that cannot be supported any more, because the ratio between the number of population payer of contributions and the number of population beneficiary of pensions has worsened. The solution is to go to pension funds fully funded, a generation creates its own pension fund during its active life.

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    Bibliographic Info

    Article provided by Ovidius University of Constantza, Faculty of Economic Sciences in its journal Ovidius University Annals, Economic Sciences Series.

    Volume (Year): X (2010)
    Issue (Month): 1 (May)
    Pages: 347-350

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    Handle: RePEc:ovi:oviste:v:10:y:2010:i:1:p:347-350

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    Web page: http://www.univ-ovidius.ro/facultatea-de-stiinte-economice
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    Keywords: social security contributions; pension pillars; fiscal coordination;

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