Pensions at the Time of Recession. The Case of Lithuania
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Teodoras Medaiskis
Teodoras Medaiskis , born in 1951, is an Associate Professor of Economics at Vilnius University and holds a Ph. D in Economics (1978). He chaired work teams which drafted the first Lithuanian independent legislation on social protection (1989-1991) and pensions (1994). Medaiskis was the Minister for Social Security from 1992-1993. He is a member of high level governmental work groups on social protection reforms in addition to being part of the TRESS and ASISP networks. Medaiskis has published several research papers on social protection issues in international and Lithuanian journals.
Abstract
In 2009, Lithuania suffered very deep recession. The fall in GDP by 15 %, high unemployment, and decreased population earnings all affected the pensions system. Before the recession struck, social insurance expenditures had increased considerably and the reserve fund had been exhausted. The recession resulted in the decreased income of the social insurance system and state. While in 2009, the government attempted to maintain the level of pensions, by 2010, it was forced to cut benefits. This shocking decision raised awareness about some theoretical problems concerning the nature of pensions. Is the social insurance payg pension the property of the retiree, or it is only a part of the working generation income shared via the social insurance system with the retired generation? How should the protection against poverty and income replacement components be combined in the pension system and how should they be financed? How should the payg and funded components be united and what are the roles of the private sector and the government? In this article, Lithuania’s attempts to cope with the recession’s consequences and to respond to these newly posed questions are presented.
About the author
Teodoras Medaiskis, born in 1951, is an Associate Professor of Economics at Vilnius University and holds a Ph. D in Economics (1978). He chaired work teams which drafted the first Lithuanian independent legislation on social protection (1989-1991) and pensions (1994). Medaiskis was the Minister for Social Security from 1992-1993. He is a member of high level governmental work groups on social protection reforms in addition to being part of the TRESS and ASISP networks. Medaiskis has published several research papers on social protection issues in international and Lithuanian journals.
References
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© 2011 by Lucius & Lucius, Stuttgart
Articles in the same Issue
- Inhaltsverzeichnis
- ZSR-Schwerpunkt: Financial Market Crisis and Pension Reforms in Eastern Europe
- The Financial Market Crisis and Old-Age Security
- Pensions at the Time of Recession. The Case of Lithuania
- The Impact of the Economic and Financial Crisis on the Polish Pension System
- Impact of the Economic and Financial Crisis on Pension Systems in Central and Eastern Europe: Hungary*
- Impact of the Economic and Financial Crisis on the Pension System in the Czech Republic
- Beiträge außerhalb des Schwerpunkts
- Sozialpolitik als Hilfe für die Wirtschaft?
- Bedürftigkeit von Müttern: Dauer des Leistungsbezugs im SGB II und Ausstiegschancen
- Abstracts
Articles in the same Issue
- Inhaltsverzeichnis
- ZSR-Schwerpunkt: Financial Market Crisis and Pension Reforms in Eastern Europe
- The Financial Market Crisis and Old-Age Security
- Pensions at the Time of Recession. The Case of Lithuania
- The Impact of the Economic and Financial Crisis on the Polish Pension System
- Impact of the Economic and Financial Crisis on Pension Systems in Central and Eastern Europe: Hungary*
- Impact of the Economic and Financial Crisis on the Pension System in the Czech Republic
- Beiträge außerhalb des Schwerpunkts
- Sozialpolitik als Hilfe für die Wirtschaft?
- Bedürftigkeit von Müttern: Dauer des Leistungsbezugs im SGB II und Ausstiegschancen
- Abstracts
