Sustainability Determinants of the Public Social Security System

• Author: Dinca G.
• Position: Transilvania University of Brasov
• Pages: 137-146

Bulletin of the Transilvania University of Braşo v

Series V: Economic Sciences • Vol. 11 (60) No. 2 – 2018

SUSTAINABILITY DETERMINANTS OF THE PUBLIC

SOCIAL SECURITY SYSTEM

Gheorgiţa DINCĂ1

Abstract: The present paper aims to highlight the main problems facing

the current pension system in Romania, by analysing the main determinants

and by identifying the weak links in the social insurance circuit. Through an

analysis of the cause of the effect, it aims to highlight the main problems of

the Romanian pension system and the impact they have in society,

endangering the quality of life, the future evolutions within the economic

and social activity. In Romania, because of the decreasing number of the

population, the public pension system can no longer provide for adequate

pensions for the future generations of Romanians. According to them, the

population tends to underestimate their real savings needs in the world,

including countries which are more developed and financially educated than

Romania.

Key words: public social security system, migration, pensions

1. Introduction

The social insurance system represents a current subject of interest debated at both

national and international level.

The first models of social security systems, according to the scientific literature, can be

found starting with 1883, when the first mandatory program of social insurance at a

national level was started in Germany, during the time of Chancellor Otto von Bismarck;

health insurance in 1883, work compensation in 1884, pe nsions for the elderly and the

impaired in 1889 (Cace, 2004). Therefore, different European countries adopted the

German model, Great Britain being the country who developed a new framework of

social insurance.

Nowadays, the insurance models present throughout Euro pe have a complex system

of financing composed by employees and employers’ co ntributions, but also different

financial sources, all of them representing versions of the Bismarck and Beveridge

models. The first model initiated by Otto von Bismarck was composed of a series of

defining elements such as:

• People considered to be insured were either employees or people with insurance

contracts;

1 Transilvania University of Braşov, gheorghita.dinca@unitbv.ro