System of Mandatory Private Pensions

Abstract

Pensions are an important part of a state's social policy, in the future perspective of reporting sustainability in modern organizations and in the personal life of each person. The demographic tendency of the world's aging population brings attention to finding new effective solutions for the management of pension systems. The first interested in finding solutions is the state, because with the aging of the population, health and care expenses for the elderly will increase significantly, putting additional pressure on public budgets. Pensions are a major expense in the annual budget of a state, so the pension system has been diversified by introducing two new components: mandatory private pension and voluntary pension. The paper presents the administration and functioning of the state pension administered privately.

Keywords

• pension system
• mandatory private pensions
• pension fund
• participant
• administrator