Transformation of special pension provision: modern European models and trends

This article examines the processes driven by increasing demographic ageing and the rise in statutory retirement ages, which exacerbate the pension protection issue for workers in hazardous, arduous and highly demanding occupations whose ability to remain employed until the general retirement age is limited. The author argues that maintaining a predominantly compensatory model of their pension provision under these conditions increases the need to finance special pension entitlements from the resources of the general pension system and strengthens the case for alternative financing mechanisms and professional life-course management of such workers. The aim of the article is to identify contemporary European trends in the transformation of special pension provision for such workers and to assess the extent to which national reforms are moving beyond the traditional compensatory logic of early retirement towards comprehensive management of the professional life course. The study applies institutional, comparative, structural-functional and systems approaches, analyses legislative changes and materials of the Organisation for Economic Co-operation and Development; and compares financing mechanisms, allocation of responsibilities and instruments supporting continued work ability. The author analyses countries representing the most distinct N/A systems and the greatest variability: France, Spain, Poland, the Czech Republic, Slovenia, Germany, the Netherlands and the United Kingdom. The article distinguishes between three analytical levels: transformation of the general pension system, transformation of employment-related pension provision, and transformation of the special segment for hazardous and arduous work. It is substantiated that, despite possible interdependence and correlation, transformation at each of these levels may proceed independently, with its own timing, depth and mechanisms of change. The author proposes assessing the depth of system transformation by the degree to which its main components – financial, institutional and functional – have been transformed. A two-level methodology is proposed: first, the depth of transformation of each component of the H/A system – financial, institutional, and functional – is determined using threshold indicators (FN-1 – FN-5, IN-1 – IN-4, and FK-1 – FK-4). Subsequently, the integral depth of transformation of the H/A system as a whole is established. This methodology is based on the non-interchangeability of the threshold indicators, distinguishing between the depth of transformation and its asymmetric profile. The article concludes that the European trajectory is asynchronous and hybrid: compensation for occupational risk is gradually being supplemented by advance financing, social partnership, professional adaptation, training and mechanisms for extending working lives. However, no fully integrated model has been identified amongst the countries studied.