Pre-reform service component in pension systems of the Baltic states: how fair is the play?
ENUntil now, the pre-reform service component makes the most part of old-age pension benefits of pensioners in Estonia, Latvia and Lithuania. The methods used for treatment of the pension rights acquired before the modern reformed multipillar pension systems came into force vary very significantly among the three Baltic countries. Which method is the fairest? What are the criteria for evaluating such fairness? The author analyses the mechanisms of conversion, their advantages and disadvantages, and verifies them with a set of principles that a fair system meets. Estonian and Lithuanian pension systems successfully pass the test, while Latvian formula fails to meet the requirements. Key words: Baltic States, pensions, fairness, pension reform.
