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Does The Albanian Pension System Work?

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  • Edlira LUCI

    ()
    (University of Tirana, Albania)

  • Dorina KRIPA

    ()
    (University of Tirana, Albania)

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    Abstract

    This article analyses the reforms in the pension scheme in Albania during the transition period. An analysis of changes experienced by the performance of the social insurance scheme reveals that, so far, the system is almost entirely dominated by the public scheme “pay as you go”, which for the moment is facing serious challenges. The results of the prognoses show that that these problems will accompany the scheme in the future too. Under these circumstances, it can be inferred that, in addition to the application of parametric modifications to the public scheme in order to strengthen its financial stability, the initiation of a more radical reform in the pension system is becoming crucial. The same conclusion has been reached by many countries which have completed this reform. The paper concludes with some recommendations on how to carry out the reform of the public pension scheme and the proposes the introduction of a multicolumn pension system.

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    File URL: http://www.seap.usv.ro/annals/arhiva/ANNALS%20VOL.10,NR.1(11),2010%20fulltext.pdf
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    Bibliographic Info

    Article provided by "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration in its journal The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration.

    Volume (Year): 10 (2010)
    Issue (Month): 1(11) (June)
    Pages: 35-45

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    Handle: RePEc:scm:ausvfe:v:10:y:2010:i:1(11):p:35-45

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    Related research

    Keywords: Pension funds; parametric reforms of pension funds; performance of social security system; dependency ratio.;

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