PFM Articles 
Post-Socialist Pension Reform: Contributory and Non-Contributory Approaches
KATHARINA MÜLLER
PFM, Vol. 5 No. 2,
(2005)
The pension reforms that were enacted in Central-Eastern Europe and the Former
Soviet Union in the past decade reflect considerable diversity, but share one common
feature: a move from a universalist-redistributive heritage to strongly differentiated,
earnings-related benefits, with an emphasis on contributory financing. The
differences in level and scope of old-age protection are widening, however, as
plummeting formal employment translates into sharply decreasing coverage ratios.
Thus, the importance of the existing non-contributory benefits for the elderly, that
currently play a relatively marginal role in the post-socialist world, may soon be
increasing.
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