Abstract:

The paper deals with the effects of large fluctuations in economic performance in the period 2006-2012 on the scope of the PAYG pension system, which is by far the most important component of the Slovenian pension system. Identified and quantified are the key consequences of the crisis impact on the performance of the system. The consequences are analyzed by comparing them with the corresponding consequences in developed countries; some of the most important after-crisis retardations in the efficiency of the pension system in Slovenia were rated against a best practice of developed countries. The achievements of the PAYG system in Slovenia in the crisis was similar to that in other EU countries, a few major deteriorations in the solvency were due to worse economic situation.

As contributions are determined by weak economic performances in the crisis and the payments by previous good performances the gap between contributions and payments increases. Asymmetric nature of the parameters could turn the crisis setback of the funded pension system into a permanent setback. Redefining system parameters could be one of the ways of restoring its pre-crisis solvency. But for the sustainability of the system, a more thorough correction, for which in addition to determining the rights parameters - "history" accounts also the parameters of economic "potential", is needed. Particularly, if smooth passing on of the living standards would (for a while) remain one of the goals of the public pension system.