Reform of Pension Insurance in the Years 1989 to 1996 and Current Problems in the System

One of the main goals of a modem pension insurance system is to guarantee citizens the greatest individual return on the financial resources that they have deposited into the system. This is accomplished by paying out a pension at a level that reflects each individual's incomeequivalence-while redistributing these same resources, at an agreed upon proportion, between those who are rich and poor-social distnrbution. The setting up of such basic parameters for a pension insurance system must be done with an understanding of a several of factors. The most important of these are national tradition and historical development; the experiences and the situation of current generations; the level of economic development; and international factors, especially ratified international conventions and integration into the European Union (EU). Pension insurance cannot be understood here in isolation but as an integrated part of the social and economic system. Any reform of this system will affect practically every citizen and must, therefore, be the result of a broad consensus in society.