REFORM OF PENSION SYSTEMS AND PROBLEMS OF JUSTICE: INTERNATIONAL EXPERIENCE

Abstract

The article discusses current issues of reforming pension systems. The purpose of the research is to determine the international experience of reforming pension systems in the context of justice problems. Тhe main methods of research were analysis, synthesis, systematic approach. The key directions of reforming the existing systems have been identified: increase in retirement age, tightening the conditions for assigning pensions, introducing professional pension schemes, introducing restrictions on the redistributive capabilities of pension institutions. Reform of pension systems is constantly associated with the problem of justice. The size of the material inequality of pensioners is significantly influenced by the structural differences of pension systems, in particular, gender. The gender imbalance in the pension provision of OECD countries is on average higher than the imbalance in wages. Instruments of redistribution of resources between socio-economic groups include pension loans, limits of contributions and pensions, adjustment of the relationship between contributions and pensions, non-insurance and minimum pensions, conditions for indexing pension payments, special rules for assigning pensions for individual workers with a long career or working in difficult and dangerous conditions, a mechanism for transferring pension rights. In traditional solidarity systems, the tasks of vertical redistribution of pension funds in favor of the less financially secure are successfully solved. But at the same time, interest in participating in insurance of other groups of contribution payers is reduced, horizontal redistribution of income during the life cycle is limited. Accumulative pension schemes with a focus on actuarial fairness increase the risks of insufficient savings due to low incomes and non-compliance with the payment schedule. One of the options for attracting the self-employed and the segment of platform employment may be soft regulation and expanding the possibilities of their voluntary connection to general insurance programs. A significant effect on the expansion of insurance coverage is provided by mandatory schemes with reduced or small single rates.