SUPPLEMENTARY PENSION INSURANCE INDIVIDUAL OR COLLECTIVE ALLOCATION OF THE PENSION FUND

Authors

Keywords
pension insurance, financial coverage system, pension fund.

Abstract
Three financial coverage systems are known and applied in the theory and practice of pension insurance: cost coverage, capital coverage and premium coverage. These systems show how operating pension costs will be allocated over time as well as among those insured. The common thing between them is that they are based on a large aggregate insurance and on the principle of mutual assistance and solidarity between the participants. In the cost coverage system and the capital coverage system solidarity encompasses all age generations while in the premium coverage system the principle of mutual assistance is spread over a particular age generation.

Some of the regulations in the Social Security Code make it impossible to apply the financial systems already mentioned in supplementary pension insurance. This strongly impedes actuary calculations and the effective allocation of the accrued pension funds.

The results obtained from the numerical example calculated in this article clearly show that it is necessary to reconsider certain passages in the Social Security Code and consequently to proceed from an individual to a collective allocation of supplementary pension insurance funds.

JEL: G23,G22.
Pages: 23

To view the full text of the article click on the relevant button below.

More titles

  • BULGARIAN TOURISM BETWEEN CLASSICAL AND POPULAR GENRES

    The nature of developing tourism as a business depends largely on the objectives pursued and on the demand of the tourists it attracts as customers. To determine the nature of the modern tourist business in Bulgaria, this article focuses on the quality and characteristics of its realisation as an industry. The aim is to determine whether best ...

  • AN ANALYSIS OF THE POSSIBILITIES FOR THE DEVELOPMENT OF INFORMATION SYSTEMS IN COMPANIES AND ORGANISATIONS

    The development of information systems requires a lot more than implementing a particular technology or finding an information solution. What are also necessary is a deep strategic approach and an analysis of the possibilities and objective difficulties. One important condition in this process is the fact that the development of an information ...

  • THE POWER BETWEEN KNOWLEDGE AND CONFORMITY

    This article is dedicated to the phenomenon of power. At the beginning, power is discussed in more general terms as the purposeful impact on people is emphasised. Then we move on to knowledge as the only source of high-quality power in comparison to the other two supreme sources, namely force and wealth, as opportunities are sought for its ...