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Estimating the Impact of the 1999 Pension Reform in Poland, 2000 - 2050

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  • Stanislaw Gomulka
  • Marek Styczen
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    Abstract

    This paper gives an account of the main aims and principles of the reform measures which came into force in 1999. Its primary objective is to present estimations of the effects of these measures on the composition of the pension system, over the next 50 years, in terms of institutions, expenditures and revenues. Within the segment of retirement pensions outside agriculture, the 1999 reform is found capable of achieving its key objectives concerning work incentives, total spending and aggregate savings. However, invalidity and family pensions for all and retirement pensions for farmers represent three segments which are yet to be properly reformed. The paper concludes that the 1999 reform should arrest a further deterioration of public sector finances with respect to pensions, but any reduction of Poland's exceptionally large both public spending on pensions and social security contributions is contingent on adopting radical reforms also in these three segments.

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    File URL: http://www.case-research.eu/upload/publikacja_plik/69977_CEU-CASE27.pdf
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    Bibliographic Info

    Paper provided by CASE-Center for Social and Economic Research in its series CASE-CEU Working Papers with number 0027.

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    Length: 52 Pages
    Date of creation: 1999
    Date of revision:
    Handle: RePEc:sec:ceuwps:0027

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    Keywords: pension reform; Poland;

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    1. Sheetal K. Chand & Albert Jaeger, 1996. "Aging Populations and Public Pension Schemes," IMF Occasional Papers 147, International Monetary Fund.
    2. Christian Thimann & Manfred Koch, 1997. "From Generosity to Sustainability," IMF Working Papers 97/10, International Monetary Fund.
    3. Vito Tanzi & Efraim Sadka, 1998. "Increasing Dependency Ratios, Pensions, and Tax Smoothing," IMF Working Papers 98/129, International Monetary Fund.
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