Pension System Viability and Reform Alternatives in the Czech Republic

January 1, 2000

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Thomas Laursen. Pension System Viability and Reform Alternatives in the Czech Republic, (USA: International Monetary Fund, 2000) accessed December 22, 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

The finances of the Czech pension system have deteriorated markedly in recent years and the aging population will add further strains in the future. The system is also burdened by significant distortions and disincentive effects. This paper assesses the current pay-as-you-go (PAYG) system, including its long-run viability, and discusses reform options. It concludes that alterations to the basic PAYG parameters can go a long way toward addressing the problems, although more systemic changes—such as pre-funding, strengthening the link between contributions and benefits, and diverting part of the pension contributions to a mandatory, private pension savings pillar—could also help.

Subject: Aging, Pension spending, Pensions, Retirement, Wages

Keywords: Earnings, Finances, PAYG, PAYG system, Rate of return, WP

Publication Details

Pages:

44
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/016
Stock No:

WPIEA0162000
ISBN:

9781451843392
ISSN:

1018-5941

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