By Indermit S. Gill, Truman G. Packard, Juan Yermo
Empirical research of 2 many years of pioneering pension and social protection reform in Latin the United States and the Caribbean exhibits that a lot has been completed, yet that severe demanding situations stay. In tackling the incomplete schedule, very much should be realized from the reform adventure of nations within the sector. holding the Promise, produced via the executive economist’s place of work within the Latin the US and Caribbean quarter on the international financial institution, evaluates coverage reforms in twelve nations, issues to successes and shortcomings, and proposes priorities and techniques for destiny reform. The authors argue that poverty in outdated age should be avoided by means of relentless efforts to increase insurance to broader segments of society, and via encouraging own reductions.
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Additional resources for Keeping the Promise of Social Security in Latin America (Latin American Development Forum)
2 Destination of Mandatory Pension Contributions Choice of system Mandatory contributions FF PAYG FF •Bolivia •Chile •Dominican Republic •El Salvador •Mexico •Colombia •Peru Choice of system PAYG FF FF PAYG PAYG •Argentina •Costa Rica •Uruguay Note: FF Fully funded system. 4. Countries where new workers remain in a reformed PAYG system that provides earnings-related defined benefit pensions that are lower but still generous, and make additional mandatory contributions to the funded plan: Costa Rica and Uruguay.
Although new affiliates can choose, up to 80 percent of them in each year fail to make an explicit choice. The private second pillar is the default option. d. Participation in individual accounts in Uruguay is determined by income level. Workers below a threshold level choose to split contributions between PAYG and individual retirement accounts. e. Exceptions exist for some subnational systems. f. At time of publication. g. Guarantees required from the fund managers. Source: Adapted from Cerda and Grandolini 1998; Queisser 1998a; Devesa-Carpio and Vidal-Meliá 2002; AIOS 2002; FIAP 2002; and country pension supervisors.
P. 133). Because the relative size of these components is a central concern of this book, Barr’s point is especially pertinent. 2. org/keepingthepromise. 3. We discuss the range of factors influencing the decision to participate in public pension systems more extensively in chapters 5 and 8. 4. In addition to the high costs borne by younger workers, a comprehensive generational accounting framework would necessarily account for many other factors to estimate the net intercohort impact of reforms.