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Legislation Publications Pension models About project Statistics
Legislation Publications Pension models About project Statistics

1. Introduction

2. Actuary expertise
2.1. Contents of the actuary expertise
2.2. Actuary control cycle
2.3. Actuary expertise tools

3. Basics of the pension legislation of the Republic of Moldova
3.1. General principles
3.2. Social insurance contributions and taxable basis
3.3. Pension types and conditions of their assignment
3.3.1. Old age pensions
3.3.2. Disability pensions
3.3.3. Survivors pensions
3.3.4. Pensions to some categories of citizens
3.3.5. Social pensions/benefits
3.3.6. Pensions paid from the state budget
3.4. Minimal pension and guaranteed minimum
3.5. Pension formulas
3.6. Pension indexation

4. Demographic situation in the Republic of Moldova
4.1. Dynamics of population number and sex/age structure
4.2. Birth rate
4.3. Mortality and life expectancy
4.4. Marriage and divorce rates
4.5. Population natality and reproduction
4.6. Demographic forecast

5. Current macroeconomic situation
5.1. Tendencies of population economic activity
5.2. Development of basic forecast

6. Background information on pension insurance
6.1. Number of pensioners
6.1.1. Analysis of the number of pensioners
6.1.2. Distribution of the number of pensioners by pension types
6.1.3. Sex/age number of pensioners
6.2. Pensioner’ standard of living
6.2.1. Average size of pensions
6.2.2. Compensation of lost wage
6.2.3. Gender differences in pension sizes

7. Modeling outputs

8. Outputs and perspectives of the development of pension system of the Republic of Moldova

9. Annex: Analysis of the risks of the Non-Financial Defined Contribution (NDC) and Financial Defined Contribution (FDC) pension systems
9.1. Principles of the design of NDC pension system
9.2. Principles of the design of FDC pension system
9.3. Experience of applying FDC schemes
9.4. Comparison of NDC and Funded schemes




Pension system of the Republic of Moldova: actuary expertise

Experience of applying FDC schemes

The experience of applying the FDC schemes in the countries of Latin America showed that

  • a considerable part of the economically active population remained beyond the pension system: actually the self employed persons have no pension accumulations, the vulnerable are the women, young and low paid workers, employed in the informal sector. The limited inclusion of the new pension system is explained mainly by excessive administrative expenditures and commission rewards to the managers of private pension funds, as well as the no confidence financial sector due to the danger of losing the funds before being retired;
  • the pension privatization did not actually influence on the improvement of the labor market functioning (in Argentina the informal employment even increased from 30% in the year preceding the introduction of the new system to 45,1% in 20031);
  • the FDC pension system could be economically justified only if the profitability of the investment of pension accumulations exceeds the rates of the wage growth, in other case it is difficult to ensure an adequate replacement of the wage by the pension;
  • the influence of pension accumulations on the economic growth was more modest than the World Bank experts supposed. This is explained by the fact that almost in all countries the main part of pension contributions are invested in state securities, but not in the real sector of economy. The excessive concentration of pension assets in state securities along with rigid restrictions to the investment abroad make the private pension system very vulnerable to political risks (after the economic collapse in 2001 in Argentina the actual investment income of pension funds went down up to -10,4%, while in 2004 up to -45,2%)2;
  • the average annual investment incomes in the countries, which implemented the FDC schemes, despite of the initial great indices have the tendency to decrease in the recent years (the actual profitability in Chili from 1981 to 1990 constituted 10,4% and from 2001 to 2005 decreased by 7%)3.

1. Яценко. В. Основы и уроки пенсионных реформ//Социальный вестник №3, 2006

2. Яценко. В. Основы и уроки пенсионных реформ//Социальный вестник №3, 2006

3. Яценко. В. Основы и уроки пенсионных реформ//Социальный вестник №3, 2006


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