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Pension system in Romania. Long term imbalances and inconsistent policies

 

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  1. Authors:
      • Ph. D. Associate Professor Razvan Papuc, Afiliation: Faculty of Bussines and Administration, University of Bucharest, Romania

    Pages:
      • 153|164

  2. Keywords: age dependency ratio, PAYGO systems, imbalances

  3. Abstract:
     Public policies on retirement, both in Romania and in other EU countries, have been and still are conditioned by numerous short-term budgetary constaints and by long term major sustainability problems. Alongside objective, demographic developments known in all European countries , support systems for the elderly are facing numerous constraints, both due to government policies marked by fiscal indiscipline and lack of consistency of decisions and, hence, credibility phenomena caused by the phenomenon "the captive politician of a redistributive policy model".
    Modeling support institutions for pensioners by political actors was most of the times the expression of elections marked by Weberian instrumental rationality and not by wertrationalitat, using the axiom- guide for the behaviour of decision markers to "meet social interests in order to come to power" and not by the concern for a more long term efficient trans-redistributive approach. This paper aims to pursue the most important imbalances that chartacterize the public pension system in Romania, expression of decisions determined by aggregating in group individual preferences and not by both rational and ethical analysis without redistribution centres. 

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