The 2022 Greek pension reform
The rebirth of carve‐out privatization in Eastern Europe
Bibliographic Data
| ID | 9971341 |
|---|---|
| Authors | Nikola Altiparmakov (0000-0001-6955-5395, Serbian Fiscal Council Belgrade Serbia, corresponding author) |
| Year | 2023 |
| Volume | 76 |
| Issue | 1 |
| Pages | 57-78 |
| Publication date | 2023-01-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Social Security Review (JOURNAL) |
| Journal identifiers | ISSN: 0020-871X • E-ISSN: 1468-246X |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/issr.12317 |
| OpenAlex | W4324122155 |
| Language | EN |
| Citations received | 1 |
| References cited | 18 |
After a decade of unprecedented austerity, Greece abruptly changed the course of pension consolidation in 2022 and implemented the controversial carve‐out pension funding approach, whereby a portion of existing pay‐as‐you‐go (PAYG) contributions are diverted to fund individual pension savings, thus undermining the financing of existing PAYG pensions. Although inspired by the World Bank’s 1994 pension privatization blueprint, the Greek 2022 reform features a major policy shift by entrusting the management of individual pension savings to a dedicated government body, ostensibly to try to remedy inherent market failures in private pension provision. Like earlier reforms in Eastern Europe, the multi‐decade transition costs of carve‐out funding have been vastly underestimated in Greece, which will give rise to fiscal distress in the coming years when annual transition costs become sizeable and favourable international financing terms start to change. Unless firm political commitment is established to implement the measures necessary to finance the transition costs, Greece may have to resort to reform reversals similar to those already implemented across Eastern Europe
Austerity · Blueprint · Business · Consolidation (business · Economic policy · Economics · Pension · Political science · Politics · Finance · Financial Literacy, Pension, Retirement Analysis · Global Health Care Issues · Housing, Finance, and Neoliberalism
Averting the old age crisis
The Social Insurance Paradox
Averting the funding-gap crisis
Years of averting the old age crisis in Eastern Europe
Another look at causes and consequences of pension privatization reform reversals in Eastern Europe
An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money
The mandatory private pension pillar in Hungary
Pension privatization in crisis
The retrenchment of second‐tier pensions in Hungary and Poland
| Citation velocity | historical |
|---|---|
| Highly cited | No |