Naslov
Fee Redistribution and Cost Rationalisation in the Second Pension Pillar of the Croatian Pansion System

Autori
Grubišić, Mihaela ; Nušinović, Mustafa

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
3rd International Conference An Enterprise Odyssey : Integration or Disintegration : Proceedings / Galetić, Lovorka - Zagreb : Faculty of Economics and Business ; Mikrorad d.o.o., 2006, 30-31

Skup
International Conference An Enterprise Odyssey : Integration or Disintegration (3 ; 2006)

Mjesto i datum
Zagreb, Hrvatska, 15.06.2006. - 17.06.2006

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Croatian Pension System; second pillar; fee redistribution; costs’ standardisation; performance fee

Sažetak
Starting from the normatively defined rules, the paper focuses on the analysis of the mandatory Second Pension Pillar in Croatia. Specific emphasis is placed on the cost and financing model and the impacts of its implementation on real life. Since the beginning of the pension reform, the State Budget covered all administrative costs, i.e. record-keeping and monitoring costs. Fees collected from the asset base of the insured, are used only to the benefit of the companies running mandatory pension funds. As a result, huge costs are imposed on pension plans’ beneficiaries and the State. With the help of a simplified formula, we found continuous fee mass increase in line with asset base accretion, while the administrative and pension companies’ costs remain practically stable. That caused us to believe that the fee burden reduction and fees’ redistribution among administrative and fund management institutions might be appropriate. We tested our hypothesis by introducing a performance fee instead. Our results show that performance fee could cover the total costs of the second pillar, enabling the State to reduce financing amount while simultaneously preserving the larger asset base for the insured. However, the prerequisite for fee redistribution is standardisation of costs for all institutions in the second pillar.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA