Financial Sustainability and Reform Options for the Albanian Pension Fund

April 1, 2001

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Format: Chicago

Volker Treichel. Financial Sustainability and Reform Options for the Albanian Pension Fund, (USA: International Monetary Fund, 2001) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper studies the financial sustainability of the Albanian pension fund and assesses possible options for its reform. The paper concludes that the pension fund is not sustainable in its current form and proposes for the urban scheme a combination of parametric changes to the existing pay-as-you-go system that would be conducive to broadening the contribution base and strengthening the financial performance of the pension fund. In addition, it proposes the establishment of a voluntary funded pillar in the urban scheme. For the rural scheme, the paper concludes that it should either be merged with the scheme for the urban self-employed or be replaced by a mandatory and funded second pillar. The paper also proposes administrative reforms to strengthen revenue collections.

Subject: Aging, Expenditure, Labor, Pension spending, Pensions, Population and demographics, Retirement, Wages

Keywords: Aging, Base earnings, Contribution ceiling, Contribution rate, Coverage rate, Eastern Europe, Ensured wage, Minimum wage, Multi-pillar reforms, Parametric reforms of pension funds, Pension spending, Pensions, Reference wage, Retirement, Taxable wage range, Transition economies, Wage ceiling, Wages, Western Europe, Work force, WP

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2001/047
Stock No:

WPIEA0472001
ISBN:

9781451846645
ISSN:

1018-5941

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