Pension reforms in the larger accession countries

The author compares the pension systems of three Central and Eastern European countries and chooses the Polish model as the most advanced. These countries, following the same pattern as Western Europe, also face a demographic shift towards ageing and shrinking populations.

A number of Central and Eastern European countries have already started to establish a balanced three-pillar pension system, including state pension insurance, company or occupational pension funds, and personal provision.

The Central and Eastern European candidate countries are at different stages of development in the establishment of their pension systems. The author examines the current state of development in the Czech Republic, where the system exists only in the form of a draft bill prepared by the previous government; in Poland, where a well-functioning pension system is already in place; and in Hungary, where the public pension system still needs to be further overhauled.

The author argues that the structure of the Polish pension system could serve as a model to guide reforms in other countries, including the present European Union. Poland has transformed the first pillar into a lean, defined contribution system and opted for a compulsory second pillar with significant mandatory contributions (7.3%), which can be considered comparatively resistant to demographic shocks.

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