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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:

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Pension Reform and the Development of Pension Systems: An Evaluation of World Bank Assistance

Autor: Independent Evaluation Group
Año: 2006
Resumen: This report analyzes the Bank's assistance to support pension reform to determine if the Bank's strategy was relevant and if it was followed. The evaluation assesses whether pension reform decisions reflected best practice guidelines at entry, and whether Bank-assisted reforms achieved their social, macroeconomic, and financial objectives. The report also evaluates the Bank's assistance in building institutional capacity, coordinating within the Bank, and cooperating with other international organizations. Finally, the evaluation summarizes these findings and presents specific recommendations for the future.

Fuente: Banco Mundial
Clasificación: Reformas de Pensiones
Tipo de Publicación: Libros
Idioma:

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Mexico - Technical Note on Industrial Organization and Competition: Pension System in Mexico

Autor: Banco Mundial
Año: 2006
Resumen: Mexico, as many other countries in Latin America, has adopted an individual capitalization pension system. The design of these pension reforms confers the administration of pension funds to private companies. Under these schemes competition plays a key role, keeping prices low, a good quality of service, and an efficient investment allocation. However, the extent of competition in the reformed systems has been a common concern for most of the countries where it has been implemented. Moreover, when competition has been intense, like in Chile between 1994 and 1997, marketing expenses were extremely high. This outcome may not be desirable if it does not benefit future pensioners and is an unnecessary increase in costs of providing the service. The performance of competition in this industry is largely related to the demand characteristics, which is by design highly insensitive to prices, rates of return or quality of service, given that this is a compulsory product with government guarantees. Regulations in this market also significantly affect the way in which competition operates. Aiming to a better degree of competition, the private pension system's regulator in Mexico has introduced innovate rules. These regulations have focus in inducing higher demand elasticity to prices and lowering barriers to entry. This has entailed lower prices, lower profits, and the entrance of new firms. The paper is structured as follows: section A gives pension reform in Mexico; section B gives the role of the government; section C deals with the afore industry; section D is commission structure; section E gives potential barriers to entry; section F focuses on changes in regulation that promote price competition; section G gives comments on policy implications and prospects; and section H gives conclusions and policy recommendations.

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

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