Financial Sustainability and Reform Options for the Albanian Pension Fund

IMF Working Papers, April 1, 2001

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Financial Sustainability and Reform Options for the Albanian Pension Fund

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Bibliographic details

• Authors: Volker Treichel
• Published: April 1, 2001
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451846645.001

Summary findings

• The pension fund is not sustainable in its current form.
• For the urban scheme:
  • A combination of parametric changes to the existing pay-as-you-go system is proposed to broaden the contribution base and strengthen the financial performance of the pension fund.
  • The establishment of a voluntary funded pillar in the urban scheme is proposed.
• For the rural scheme:
  • It should either be merged with the scheme for the urban self-employed or be replaced by a mandatory and funded second pillar.
• Administrative reforms are proposed to strengthen revenue collections.

Policy recommendations

• Implement parametric reforms in the urban pay-as-you-go scheme aimed at:
  • Broadening the contribution base.
  • Strengthening financial performance of the pension fund.
• Establish a voluntary funded pillar within the urban scheme to supplement sustainability.
• Restructure the rural scheme by either:
  • Merging it with the scheme for the urban self-employed, or
  • Replacing it with a mandatory and funded second pillar.
• Strengthen administrative capacity and procedures to improve revenue collections.

Key topics and keywords (as stated in source)

• Aging; Expenditure; Labor; Pension spending; Pensions; Population and demographics; Retirement; Wages
• 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 note

• Title: Financial Sustainability and Reform Options for the Albanian Pension Fund
• Author: Volker Treichel
• Date: April 1, 2001
• Series: IMF Working Papers

Source: Financial Sustainability and Reform Options for the Albanian Pension Fund (IMF Working Paper, April 1, 2001).

Content in this bundle

• Financial Sustainability and Reform Options for the Albanian Pension Fund - WP/01/47
  • Financial Sustainability and Reform Options for the Albanian Pension Fund - WP/01/47 (Markdown version)
  • Financial Sustainability and Reform Options for the Albanian Pension Fund - WP/01/47 (PDF)