SUPPLEMENTARY PENSION INSURANCE – INDIVIDUAL OR COLLECTIVE ALLOCATION OF THE PENSION FUND

Abstract

Three financial coverage systems are known and applied in the theory and practice of pension insurance: cost coverage, capital coverage and premium coverage. These systems show how operating pension costs will be allocated over time as well as among those insured. The common thing between them is that they are based on a large aggregate insurance and on the principle of mutual assistance and solidarity between the participants. In the cost coverage system and the capital coverage system solidarity encompasses all age generations while in the premium coverage system the principle of mutual assistance is spread over a particular age generation.Some of the regulations in the Social Security Code make it impossible to apply the financial systems already mentioned in supplementary pension insurance. This strongly impedes actuary calculations and the effective allocation of the accrued pension funds.The results obtained from the numerical example calculated in this article clearly show that it is necessary to reconsider certain passages in the Social Security Code and consequently to proceed from an individual to a collective allocation of supplementary pension insurance funds.