Liberalization of pension systems in Central and Eastern Europe

Abstract

The principal aim of this paper is to describe the process of liberalization of the pension systems in Central and Eastern Europe, in terms of both the basic system structure and the regulations applied in relation to pension funds. The following issues are addressed: the universality of participation in the various pillars of the pensions system, the amounts of pension contributions, public engagement in the area of pensions provision, investment limits for pension funds, systems of remuneration for pension fund management companies, and guaranteed rates of return for pension funds. The final section of the paper contains overall conclusions relating to both positive and negative consequences of the liberalization of pension provision, and an attempt is made to outline the changes which ought to occur in further reform of the pensions systems of the post-communist countries.