IDEAS home Printed from https://ideas.repec.org/a/prf/journl/v11y2017i1p61-92.html
   My bibliography  Save this article

Czech Public and Occupational Pension Schemes and Reforms

Author

Listed:
  • Jaroslav Vostatek

    (University of Finance and Administration, Faculty of Law Studies)

Abstract

The Czechoslovak communist retirement protection scheme resembled the Bismarckian earnings-related pensions, with new benefits close to final salaries and with their insufficient indexation. The aim of this paper is to evaluate the reform processes in Czechia and the potential for a simple technical reform that would make the public retirement schemes understandable and efficient. In the process of the transition to capitalism under liberal Czech governments, the prevailing concept of the public retirement scheme changed to a Beveridge model of pensions not being related to previous wages. The insufficient valorisation of bend points was the main method of this transition. Modern international pension theory recommends the separation of a solidary pillar and an earnings-related pillar. After the Czech “small” pension reform, a basic technical reform may be simply realised, resulting in a higher flat-rate pension and an NDC pension insurance scheme, convenient to parties with programmes based on three basic welfare regimes. The introduction of occupational pension schemes is necessary to reflect the specifics of arduous occupations.

Suggested Citation

  • Jaroslav Vostatek, 2017. "Czech Public and Occupational Pension Schemes and Reforms," ACTA VSFS, University of Finance and Administration, vol. 11(1), pages 61-92.
    • Handle: RePEc:prf:journl:v:11:y:2017:i:1:p:61-92
    as

    Download full text from publisher

    File URL: https://www.vsfs.cz/periodika/acta-2017-1-04.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sinn, Hans-Werner, 2004. "The pay-as-you-go pension system as fertility insurance and an enforcement device," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1335-1357, July.
    2. Lans Bovenberg & Theo Nijman, 2009. "Developments in pension reform: the case of Dutch stand-alone collective pension schemes," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 16(4), pages 443-467, August.
    3. André Sapir, 2006. "Globalization and the Reform of European Social Models," Journal of Common Market Studies, Wiley Blackwell, vol. 44(2), pages 369-390, June.
    4. Robert Holzmann & Edward Palmer, 2006. "Pension Reform : Issues and Prospects for Non-Financial Defined Contribution Schemes," World Bank Publications - Books, The World Bank Group, number 6983, December.
    5. Robert Holzmann & Edward Palmer & David Robalino, 2012. "Nonfinancial Defined Contribution Pension Schemes in a Changing Pension World : Volume 1. Progress, Lessons, and Implementation," World Bank Publications - Books, The World Bank Group, number 9378, December.
    6. repec:ces:ifodic:v:10:y:2012:i:4:p:19073289 is not listed on IDEAS
    7. Lans Bovenberg & Casper van Ewijk, 2012. "The Future of Multi-Pillar Pension Systems," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(04), pages 16-20, December.
    8. Asghar Zaidi & Edward Whitehouse, 2009. "Should Pension Systems Recognise "Hazardous and Arduous Work"?," OECD Social, Employment and Migration Working Papers 91, OECD Publishing.
    9. Lans Bovenberg & Casper van Ewijk, 2012. "The Future of Multi-Pillar Pension Systems," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(4), pages 16-20, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joanna Rutecka-Gora & Jaroslav Vostatek & John A. Turner, 2018. "Extending pension coverage: Tax versus non-tax incentives," ACTA VSFS, University of Finance and Administration, vol. 12(2), pages 107-124.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Garcia Huitron, Manuel & Ponds, Eduard, 2016. "Participation and Choice in Funded Pension Plans : Guidance for the Netherlands from Worldwide Diversity," Other publications TiSEM 5351a381-f866-4566-82d8-9, Tilburg University, School of Economics and Management.
    2. Jaroslav Vostatek, 2015. "Social and Provision Models of Pension Insurance and Savings," ACTA VSFS, University of Finance and Administration, vol. 9(1), pages 74-103.
    3. Vaclav Zdarek, 2015. "A Robust Search for Determinants of Price Convergence in European Union – Known “Suspects” or New “Villains”?," ACTA VSFS, University of Finance and Administration, vol. 9(1), pages 7-41.
    4. van Schie, Ron J.G. & Dellaert, Benedict G.C. & Donkers, Bas, 2015. "Promoting later planned retirement: Construal level intervention impact reverses with age," Journal of Economic Psychology, Elsevier, vol. 50(C), pages 124-131.
    5. Hind El-Houjjaji & Abdellah Echaoui, 2020. "Notional Defined Contribution Accounts: An Application To Morocco," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 25, pages 93-108, June.
    6. Frans J. Willekens, 2014. "Demographic transitions in Europe and the world," MPIDR Working Papers WP-2014-004, Max Planck Institute for Demographic Research, Rostock, Germany.
    7. Marx, Ive & Nolan, Brian & Olivera, Javier, 2014. "The Welfare State and Anti-Poverty Policy in Rich Countries," IZA Discussion Papers 8154, Institute of Labor Economics (IZA).
    8. Tomáš Fiala & Jitka Langhamrová, 2014. "Modelování budoucího vývoje úhrnu pojistného a úhrnu vyplacených starobních důchodů v ČR [Modelling of the Future Development of the Total Amount of Premium Paid and Total Amount of Old-Age Pension," Politická ekonomie, Prague University of Economics and Business, vol. 2014(2), pages 232-248.
    9. Alina Kulai, 2015. "Integrational Models and Forms of Inter-State Public-Private Partnership: Aspects of Financial Convergence," ACTA VSFS, University of Finance and Administration, vol. 9(1), pages 42-58.
    10. Jaroslav Tichý, 2015. "Risks of Mortgage Loans in the Czech Republic," ACTA VSFS, University of Finance and Administration, vol. 9(1), pages 59-73.
    11. Peter Sika & Jarmila Vidov, 2018. "The Pension System and its Financing as an Important Part of Public Finances in the Slovak Republic," International Journal of Economics and Financial Issues, Econjournals, vol. 8(5), pages 45-51.
    12. Wang, Leran, 2021. "Fertility, Imperfect Labor Market, and Notional Defined Contribution Pension," The Journal of the Economics of Ageing, Elsevier, vol. 20(C).
    13. Edyta Marcinkiewicz, 2019. "Voluntary Pensions Development and the Adequacy of the Mandatory Pension System: Is There a Trade-Off?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(2), pages 609-636, June.
    14. Krpan, Mira & Pavković, Ana & Galetić, Fran, 2019. "Comparison of Sustainability Indicators of Pension Systems in the New EU Member States," 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations (Dubrovnik, 2019), in: 7th International OFEL Conference on Governance, Management and Entrepreneurship: Embracing Diversity in Organisations. April 5th - 6th, 2019, Dubrovn, pages 470-484, Governance Research and Development Centre (CIRU), Zagreb.
    15. Tindara Addabbo & Anna Maccagnan & Carmen Llorca-Rodríguez & Rosa García-Fernández, 2010. "Income distribution and the effect of the financial crisis on the Italian and Spanish labour markets," Department of Economics 0639, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    16. Meier, Volker & Wrede, Matthias, 2010. "Pensions, fertility, and education," Journal of Pension Economics and Finance, Cambridge University Press, vol. 9(1), pages 75-93, January.
    17. Andrea Saltelli, 2007. "Composite Indicators between Analysis and Advocacy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 81(1), pages 65-77, March.
    18. Bruno Amable, 2009. "The Differentiation of Social Demands in Europe. The Social Basis of the European Models of Capitalism," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 91(3), pages 391-426, May.
    19. Tausch, Arno, 2007. "Correctly finger-pointing the Lisbon-process-villains," MPRA Paper 1890, University Library of Munich, Germany.
    20. Catherine Mathieu & Henri Sterdyniak, 2008. "European social model(s) and social Europe," Sciences Po publications 2008-10, Sciences Po.

    More about this item

    Keywords

    retirement pension; welfare regimes; occupational pension schemes; pension pillars; Bismarck system; Beveridge system;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • H - Public Economics
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prf:journl:v:11:y:2017:i:1:p:61-92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Magdalena Šebková (email available below). General contact details of provider: https://edirc.repec.org/data/vsfspcz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.