Pension reform in Croatia

摘要: Croatia's transition toward independence, and the market economy in 1990s, exacerbated problems pay-as-you-go (PAYG) system, ultimately led to its financial collapse. Although a comprehensive three-pillar reform was initiated late 1995, implementation of only began 1998, with an overhaul PAYG parameters, including shifting German-style points system. Introduction mandatory, voluntary funded pillars announced implemented 2002. The new system includes privately-managed individual account scheme, contribution rate five percent, addition downsized pay-as-you-go, defined benefit component. This paper describes design highlights areas where further refinements are needed.