With the pesnsion system reform and the establishment and existence of a three-pillar pension system as a combined system of publicly funded pension insurance and fully funded pension insurance in the Republic of Macedonia, it is expected to ensure long-term stability of the system which is an social insurance important element. Systematically, the existence of three pillars in the pension system is an opportunity to provide funds for old age from three sources and at the same time diversify the risk, which is especially important given that pension and disability insurance takes place over a long period of time. In that long period of time, unpredictable movements are possible (both favorable and unfavorable) both in the population and in the economy, so that the diversified system will provide protection for the elderly in the long run and at the same time pension system long-term solvent functioning as a whole.
The main goals in reform design were:
- Security in exercising the pension and disability insurance rights
- Pension and Disability Insurance Fund of Macedonia short-term and long-term solvency insurance,
- Maximum security and minimum risk,
- Pension fairness guarantee for all generations,
- Public confidence strengtening in the pension system by achieving other goals.
Furthermore, the voluntary fully funded pension insurance in the Republic of Macedonia primary goal is:
- Providing higher income after retirement for the insured persons who are already insured in the single-pillar or two-pillar pension system (compulsory pension and disability insurance), who want and are able to allocate additional funds for greater material security or maintaining a higher standard of living after retirement;
- Providing a pension to persons who are not covered by compulsory pension and disability insurance for themselves or by others. These include the long-term unemployed, employees of projects or foreign missions, spouses who are not employed and other persons whether employed or unemployed;
- Providing preconditions for establishing professional pension schemes in the process of social security system harmonization in Macedonia with the one in the European Union.
Meeting the above listed objectives will result in benefits for the individuals participating in the pension system, for the pension system itself, as well as additional effects on the economy.
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