Paper Title
Pension Reforms Reversals and Risk-Sharing Cycle: A Theory and Global Experience

Abstract
In this paper we offer an explanation to pension systems cyclical reforms, based on CEE countries experience over the last 3 decades. We claim that in the transition to funded pension design the government not only transfers longevity and fiscal risks to the individual but also absorbs risks transferred from the public, where each market actor transfers undiversifiable risks to the other. This hidden risk path that has not been discussed yet in the literature, stemmed from the public expectation to risk premium or adequate old age benefits that evolves to political pressure. The outcomes of this risk path realized in financial transfers, such as social security, means-tested and minimum pension guarantee. Consequently, funded pension designs naturally converges to a new landscape paradigm of risk sharing, including intergenerational and intra-generational play. Financial crisis such as the recent Covid-19 pandemic foster the convergence process. Keywords - Pension scheme, Pay-As-You-Go (PAYG), Put Option, Social Security, Benefits