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Pension Systems’ Privatisation in Central and Eastern Europe

100%
Potůček M.
Problemy Polityki Społecznej. Studia i Dyskusje
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2020
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vol. 48
41-51
EN
Introduction of the second pension pillars in Central and Eastern European countries represents a unique political, social and economic experiment. This paper offers the overview of this paradigmatic shift, taking into account both domestic factors, the role of international financial institutions and the European Union. Ten out of eleven countries - newcomers to the European Union - decided to implement it. Slovenia stayed aside from the beginning. Poland, Slovakia, Latvia, Lithuania, Estonia, Croatia, Bulgaria and Romania offer a rich and diverse trajectory of the time and conditions of its introduction, further development, in some instances retrenchment, and the scope of benefits for retired insured persons. Hungary was a pioneering country, but later on, it left the camp and dropped this option. The issue the paper deals with is the case of the Czech Republic in more detail. The country was a latecomer, opted just for its voluntary version, and cancelled it completely again just after three years of operation. Concluding remarks address the emerging experience with reform outcomes and a potential role of the European Union as one of the actors influencing pension reforms in the region.
2

Czech pension reform: how to reconcile equivalence with fiscal discipline

63%
Potůček M., Rudolfová V.
Central European Journal of Public Policy
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2015
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vol. 9
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issue 1
170-182
EN
One of the recent changes in the Czech Republic’s pension system was provoked by a petition to the Constitutional Court. The setting of bend points for determining the amount of pensions depending on the insured person’s previous earnings was contested as discrimination against higher income categories. The Constitutional Court granted the petition. The result was an approval and implementation of an amendment to Act No. 155/1995 Coll., on Pension Insurance, that for the purposes of calculating the level of old-age pensions favoured the highest income decile at the expense of most other insured persons, namely those with middle incomes. Simultaneously, the political criterion of fiscal discipline was applied to ensure the financial sustainability of the pension system. In analysing this case, we critically adopt the theory of actor-centred institutionalism and the theory of the policy cycle. From the nature of the analysed case it follows that we pay attention mainly to the legislative process which resulted in the amendment. Our methodology is dominated by analysis of documents (legal norms, court decisions, political programmes, official publications) and political and administrative communication (including debates on legislative drafts in the executive and legislature).
3

Rivalry of Advocacy Coalitions in the Czech Pension Reform

63%
Potůček M., Rudolfová V.
NISPAcee Journal of Public Administration and Policy
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2016
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vol. 9
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issue 1
117-134
EN
The Czech Republic, as many other countries of Central and Eastern Europe, faced and is still facing a pension-reform challenge. The diversification of pension pillars led to the massive displacements of participant contributions from the public PAYG pension pillars to the newly constructed private, defined-contribution, fully-funded pillars. In the Czech Republic, the adoption of the relevant law was preceded by serious political conflict between supporters and opponents of this step (both among different political actors and among professionals). In an analysis of the conflict we critically apply the Advocacy Coalition Framework. We work mainly with the analysis of policy documents, public statements of the individual actors and an analysis of voting on the relevant law in both chambers of the Czech Parliament towards the identification of the crystallization process of two clear-cut coalitions between actors from both sides of the spectrum. The Advocacy Coalition Framework in exploring the dynamics of the public-policy process proved to be able to explain situations where there is sharp political conflict. Through the lens of the devil-shift of both camps (advocacy coalitions with different beliefs), each fell into extreme positions within the coalition to affirm the correctness of their arguments and positions.
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