The Role Of The State And Preconditions For The Implementationof The System Of Voluntary Pensions In Montenegro

Pension insurance is a very important component of the total social policy of almost all countries of the modern world. It represents a form of "compulsory" saving of an individual in the period when he/she is not capable for working any more. Private pension systems are an establish set of processes and relations of their holders. Due to their importance in a social system, the role of the state is undisputable in their regulating and implementing. There is a law on voluntary pension funds in Montenegro and it has been applied since 2007. Until now three associations for managing pension funds and two funds are organized. This work analyses basic preconditions for further implementation of the system of voluntary pensions in Montenegro: macro-economic stability, general fiscal stability, creating appropriate efficient institutions, regulatory and supervisory agencies, as well as other preconditions (critical capital mass, adopting the appropriate regulations, optimization policy etc).