The Gender Dimensions of Pension Reform Hungary, Poland and the Czech Republic Elaine Fultz Senior Specialist in Social Security ILO Budapest

1. Approaches to reform 2. Gender impacts of reform

Mid and late 1990s Major pension reforms Increase retirement age (H,P,C) More individualized benefits (H,P) Pension credits for childcare (H,P) Pension privatization (H,P)

Gender Impacts of Reform (4) 1. The retreat from redistribution

Poland – average pension paid to a woman as a % of average pension paid to a man, both retiring at age 60 Pre-reform82 Post-reform60

Retirement age CountryPre-1990Current law Czech Rep.60 for men, for women 62 for men, for women, being phased in by 1 January 2007 Hungary60 for men, 55 for women 62 for both sexes, being phased in by 1 January 2009 Poland65 for men, 60 for women, with early retirement options 65 for men, 60 for women, with early retirement eliminated beginning in 2007, with the exception of a narrow list of occupations, to be specified in future legislation

Average pension for a woman (as a percentage of the average pension for a man) Poland, simulation for 2050 With continuing early retirement for women (60, 65) With equal retirement at age 65 Old system7581 New system5773

Caring credits

Life expectancy and private pensions

One table or two? 1.Gender overlap 2.Public purposes 3.Slippery slope

To sum up – Greater losses for women in all three countries

Reflects two broad trends across Europe 1.Strong appeal of individualism 2.Tight fiscal constraints

The scorecard: 1.Severest losses in Poland – Notional Defined Contribution (NDC) and earlier retirement 2.Least severe in the Czech Republic – redistribution continued 3.Hungary – equal retirement age, gender neutral life expectancy

Issues for gender advocates 1.Gender neutral life tables 2.Minimum standards 3.Equalize retirement age 4.Social value of child care

Need for broader action on gender equality Labour market Unemployment Skewed division of labour in families