Analysis of Some Indicators of the Social Insurance System in Albania

Abstract

The compulsory social insurance scheme in Albania (the state scheme) is a scheme based on the principle "pay-as-you-go", on the principle of individual responsibility for the social risks of the future and on the principle of solidarity between generations. This is a scheme funded by the contributions of employers, employees and self-employed people. Beneficial payments are guaranteed in an amount covering at least the minimum standard of living determined by the Council of Ministers. This paper analyzes the performance of the most important of individual indicators of the social insurance system (analytical indicators). There are analyzed only those analytical indicators that point to the current performance as well as those related to the prognosis of the progress of this scheme in the future such as dependency rate, replacement rate, ratio between beneficiaries to total population and coverage rate. Also, there is a quantitative analysis carried through the SPSS statistical program on the influence the coverage rate has over the pension deficit and the trend of this deficit is estimated.