Inadequacies of regulations on supplementary pension plans in Central and Eastern European countries
| Date | 01 September 2021 |
| Author | Joanna Rutecka-Góra |
| Published date | 01 September 2021 |
| DOI | 10.1177/13882627211038964 |
| Subject Matter | Articles |
Inadequacies of regulations on
supplementary pension plans in
Central and Eastern European
countries
Joanna Rutecka-Góra
SGH Warsaw School of Economics, Warszawa, Mazowieckie, Poland
Abstract
The supplementary occupational and individual pension systems in Central and Eas tern European
countries (CEE) are poorly regulated while their architecture is very complex. Law on supplemen-
tary pensions focuses on ensuring financial security of financial institutions, their liquidity and sol-
vency, as well as on stimulating the development of additional pension protection understood as
higher coverage and assets under management. The efficiency guarantees and cost limits have not
been implemented and the profitability of such products for individual savers is rarely assessed.
The analyses conducted on the regulation of voluntary old-age pension systems in Bulgaria,
Estonia, Latvia, Lithuania, Poland, Slovakia and The Czech Republic indicated the main inadequacies
of the supplementary old-age provision offered. They relate to the lack of preliminary and regular
product assessment, inadequacy of plan design, efficiency and costliness. The recommended changes
relate to risk sharing, forms of pension benefits, limits on costs, information policy and transparency.
Keywords
pension, supplementary pension plans, pension savings, efficiency of pension plans, individual
retirement accounts
1. Introduction
Old-age pension system reforms introduced in Central and Eastern European countries gave
broader ground to creating supplementary pension plans that should increase old-age income
above the level offered by public systems. Although the importance of additional retirement
Corresponding author:
Joanna Rutecka-Góra, SGH Warsaw School of Economics, Warszawa, Mazowieckie, Poland.
E-mail: jrutec@sgh.waw.pl
Article
European Journal of Social Security
2021, Vol. 23(3) 232–246
© The Author(s) 2021
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DOI: 10.1177/13882627211038964
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