Pension Reform in The Republic of Northern Macedonia-Model for The Republic of Kosovo

Abstract

The transitional process of a transitional pension system into pension system with financial capital and adaptability of the reforms of the pension system presents a huge difficult. The transfer of a transitional pension system into a pension system with financial capital provides the risk from losses due to diversion of pension market and demographic causes. In Republic of North Macedonia, the reforms taken in the pension system and the model Pay-As You-Go plus savings are prospering continuously which is a successful model who is assisting in the development of the capital market. The functional model Pay-As-You-Go plus savings pattern is demographic trend of the population and the pension system functionality consists of three pillars the first pillar of the pension is controlled by the state and the state takes responsibility whereas the second and the third pillar are controlled by private pension societies and the responsibility in case of bankruptcy of assets is held by the state but the state holds responsibility only for 80% of the assets of the second pillar and the third pillar which is voluntary the responsibility is held by self-insured person or by members of that system. During work I used the quantitative method of data collection, i.e. questionnaire was used for data collection. Another method used in this paper is descriptive method, by which I described editorial materials, scientific works, encyclopedias materials, official reports and primary literature regarding the matter by various authors mentioned in the literature review.