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Mexico: Financial Sector Assessment Program Update: Technical Note: The Pension Annuity Market

Autor: Fondo Monetario Internacional (FMI)
Año: 2007
Resumen: This paper analyzes the performance and development of the Mexican pension annuity market in Mexico that stemmed from the 1997 pension reform. The Mexican experience displays interesting characteristics that provide lessons for other countries that still need to design the decumulation phase of their newly established second pillars. At the same, time it raises some technical and policy concerns that need addressing as they could hamper, in the future, the healthy development of the market. This paper benefited from interviews with officials in the Insurance Supervisory Authority (CNSF), the Ministry of Finance (SHCP), the Pension Supervisory Authority (CONSAR) and the Social Security Institute (IMSS) as well as with management of specialized annuity companies. It could have not been prepared without the written material provided by the CNSF, listed in the reference section at the end of the paper. The reminder of the paper is structured as follows: Section II briefly summarizes the 1992 and 1997 pension reforms from which the pension annuity market derives; Section III analyzes the evolution of the industrial organization, annuity product design and competition, the evolution of assets and liabilities and investment, as well as the regulatory framework for the aforementioned items, and the performance of the market; Section IV analyzes the development prospects of the market in light of the more recent 2001 and 2002 reforms of the 1997 social security law. Conclusions and policy recommendations follow.

Fuente: Fondo Monetario Internacional (FMI)
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Informes
Idioma:

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Reducing Error, Fraud and Corruption (EFC) in Social Protection Programs

Autor: Tesliuc, Emil Daniel; Milazzo, Annamaria
Año: 2007
Resumen: Social Protection (SP) and Social Safety Net (SSN) programs channel a large amount of public resources, it is important to make sure that these reach the intended beneficiaries. Error, fraud, or corruption (EFC) reduces the economic efficiency of these interventions by decreasing the amount of money that goes to the intended beneficiaries, and erodes the political support for the program. While no program is immune to EFC, evidence from developed countries demonstrates that such leakage can be brought to negligible levels. In five Organization for Economic Co-operation and Development (OECD) countries (UK, Canada, Ireland, New Zealand, and USA) this fraction is between 2-5 percent for the SP sector as a whole. For SSN programs, which use more complex eligibility criteria and hence are more prone to EFC, this fraction is 10 percent. To achieve these results, programs have implemented a number of measures reviewed in this note. In contrast, efforts to combat or even measure EFC are quite rare in developing countries, although some programs are plagued by it.

Fuente: Banco Mundial
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Informes
Idioma:

Para visualizar el documento, clic aquí »

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Republic of Poland: Financial Sector Assessment Program-Technical Note-Competition and Performance in the Polish Second Pillar

Autor: Fondo Monetario Internacional (FMI)
Año: 2007
Resumen: This technical note for the Republic of Poland on competition and performance explains the Polish pension system and domestic capital market. Competition policies may need to be reviewed, in particular the combination of measures to maintain small pension funds operating while imposing strict caps on fees. If the government decides to continue pursuing policy of promoting competition in returns while reducing fees further, it may need to consider more structural changes in the second pillar, along the lines of the Swedish model.

Fuente: Fondo Monetario Internacional (FMI)
Clasificación: Reformas de Pensiones
Tipo de Publicación: Informes
Idioma:

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On the Financial Sustainability of Earnings-Related Pension Schemes with “Pay-As-You-Go” Financing and the Role of Government Indexed Bonds

Autor: Bodor, András; Robalino, David A.
Año: 2006
Resumen: In this paper the authors reconsider the idea of an earnings-related pension system with reserves invested in indexed government bonds as a mechanism to both ensure financial sustainability and improve security. They start by reviewing the characterization of the sustainable rate of return of an earnings-related pension system with pay-as-you-go financing. The authors show that current proxies for the sustainable rate, including the Swedish "gyroscope," are not stable and propose an alternative measure that depends on the growth of the buffer-stock and the pay-as-you-go asset. Using a simple one-sector macroeconomic model that embeds a notional account pension system they then show how GDP indexed government bonds, if combined with the right measure for the sustainable rate of return on contributions, could be used to generate a sustainable and secure earnings-related pension system, without becoming a fiscal burden. The proposal is particularly attractive for countries considering reforms to earnings-related systems that have accumulated a large implicit pension debt. In this case, the government bonds allow the financing of this debt in a transparent way. The proposed mechanism can also facilitate the transition to a fully-funded pension system when the government bonds are allowed to be traded.

Fuente: Banco Mundial
Clasificación: Fondos de Inversión
Tipo de Publicación: Documentos de Trabajo
Idioma:

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Mexico Financial Sector Assessment Program Update: Technical Note on the Pension Annuity Market

Autor: Banco Mundial
Año: 2006
Resumen: This paper analyzes the performance and development of the Mexican pension annuity market in Mexico that stemmed from the 1997 pension reform. The Mexican experience displays interesting characteristics that provide lessons for other countries that still need to design the decumulation phase of their newly established second pillars. At the same, time it raises some technical and policy concerns that need addressing as they could hamper, in the future, the healthy development of the market. This paper benefited from interviews with officials in the Insurance Supervisory Authority (CNSF), the Ministry of Finance (SHCP), the Pension Supervisory Authority (CONSAR), and the Social Security Institute (IMSS) as well as with management of specialized annuity companies. The paper is structured as follows: section one gives introduction; section two briefly summarizes the 1992 and 1997 pension reforms from which the pension annuity market derives; section three analyzes the evolution of the industrial organization, annuity product design and competition, the evolution of assets and liabilities and investment, as well as the regulatory framework for the aforementioned items, and the performance of the market; section four analyzes the development prospects of the market in light of the more recent 2001 and 2002 reforms of the 1997 social security law; and section five gives conclusions and policy recommendations.

Fuente: Banco Mundial
Clasificación: Reformas de Pensiones
Tipo de Publicación: Documentos de Trabajo
Idioma:

Para visualizar el documento, clic aquí »

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