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Pension Reform in the Baltic Countries

image of Pension Reform in the Baltic Countries

Reform of the pension regime is continually evolving in the Baltic countries.  This publication contains individual country reports, comparative analysis from a regional perspective and examines key policy issues in the private pension sector.  It includes perspectives on these issues debated during the Pension Conference organised by the OECD in co-operation with the EU in April 2003 in Tallinn, Estonia.  The analyses benefit from in-depth knowledge of OECD experience in these sectors, as well as from experience in other emerging market economies.

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Review of Pension Reform in Latvia

How it Was Carried Out and What the Results Show in 2003

This paper highlights the main reforms that have affected the Latvian pension system since 1991. It focuses on the three-tier model approved in 1995, which led to the introduction of voluntary funded schemes in 1998 and mandatory pension funds in 2001. The reform also led to the establishment of a new first tier where benefits are financed on a PAYG basis, but are based on individual actuarial principles. This is one of the few cases in the world of the so-called notional defined contribution system. As in Estonia, contribution collection, account management and record keeping are centralised. Banks and insurance companies can be pension fund managers but have only partial information about the affiliates. Supervision is carried out by the Financial and Capital Markets Commission...

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