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Social protection measures require sustainable financing – creating and maintaining adequate fiscal space at the national level. Good governance of social protection at all stages – planning policies, policy reforms, and implementation – requires continuous monitoring of its performance and finances, including long-term projections and simulations of cost and benefits of different social protection programs and overall social protection systems. These projections and simulations should take into account demographic trends, including demographic ageing.
Poland
(2018)
Poland belongs to the first wave of pension reformers in Central and Eastern Europe. The Polish pension reform of the late 1990s can serve as a case study for the challenges faced when implementing a radical paradigmatic pension reform towards a privatized DC scheme. This report analyses the background of the original reform, discusses its political, social and economic impact and explains the reasons for later reform reversals. The report stresses that the two re-reform waves, which took place in 2011 and 2013, were mainly driven by fiscal considerations. Since the current system maintains the DC scheme applied to both public and private tiers, the recent reversal of privatization will not improve benefit levels.