The Principle of Solidarity Between Generations on the Example of the Pension System

Abstract

Solidarity between generations in the public pension systems for this analysis is related to the force in the PAYG pension systems contract between the generations. In the research, taking into account that the implementation of pension rights takes place in a long space of time, and benefits in the PAYG system is financed by the generation of economically active, the validity of the contract between the generations has been used to determine the obligation to pay contributions during the activity to be able to exercise the right to receive benefits after cessation of employment. This design of pension systems based on the principle of apportioning indicates a direct relationship between paying the premium, and the collection of performance. It is very important that solidarity between generations is associated with the redistributive function of the state, which in turn implies taking into account the interests of all citizens in the position of having to distribution of goods and impose the burden of the public.