The Polish NDC Scheme : Success in the Face of Adversity
Poland’s pension system faces multiple challenges, including accelerating population aging. Early retirement policy aimed at mitigating mass exit from the labor market led to the rise of pension system economic dependency. Transition to a nonfinanc...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/748421556879207198/The-Polish-NDC-Scheme-Success-in-the-Face-of-Adversity http://hdl.handle.net/10986/31642 |
| Summary: | Poland’s pension system faces multiple
challenges, including accelerating population aging. Early
retirement policy aimed at mitigating mass exit from the
labor market led to the rise of pension system economic
dependency. Transition to a nonfinancial and financial
defined contribution (NDC plus FDC) system in 1999 mitigated
the fiscal risk and an unfair balance of interest between
the working and retired generations. The new system
separated the income allocation and redistribution. The
retirement age was raised. However, the implementation of
the new system is a case study of misuse for current
political goals, ad hoc tweaks, and unfinished topics. Yet
the 1999 pension reform met its goals. |
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