Social Security System: A Case Study
The reform of the social security system, which has begun to be implemented, has made visible changes in some parameters of the system. Among the most important is changing the formula for calculating the pension. The removal of the upper limit of the retirement provision has brought a significant change in the amount of pensions set after 1 January 2015, a change that goes up to 7 000 ALL (49 GBP) a month more for the same retirement pension until 31.12 .2014. This increase looks artificial due to the fact that it is artificially interfered with indexing coefficients for which has not been followed the same rate of assessment. Significant change in the size of the pension as a result of changing the way of calculating the pension will affect the social security costs, while there is no significant change in the number of contributors. In addition, this also affects the creation of disparities in the treatment of pensioners and a non-positive social impact in relation to existing pensioners. The timely adjustment of pensions is one of the methods used in such moments when there are changes in the
…show more content…
Again, the social insurance scheme operates under the PAYG principle, while there are some supplementary schemes that operate in the insurance market. Of particular importance is the need to participate in the contributory system of all employees, both in the state and private sectors. In this process, the role of all factors influencing the reduction to the elimination of informal work must be interlinked. Increasing participation in the compulsory social security scheme, in a system where the number of working-age populations accounts for about 64% of working age population (aged 15-60), is an important element for the financial sustainability of the scheme. Therefore, more and more attention should be paid to the fight against contributing
Again, the social insurance scheme operates under the PAYG principle, while there are some supplementary schemes that operate in the insurance market. Of particular importance is the need to participate in the contributory system of all employees, both in the state and private sectors. In this process, the role of all factors influencing the reduction to the elimination of informal work must be interlinked. Increasing participation in the compulsory social security scheme, in a system where the number of working-age populations accounts for about 64% of working age population (aged 15-60), is an important element for the financial sustainability of the scheme. Therefore, more and more attention should be paid to the fight against contributing