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Portfolio Limits : Pension Investment Restrictions Compromise Fund Performance

Autor: Banco Mundial
Año: 2000
Resumen: The value of funded pensions can depend critically on the funds' investment performance. To try and protect people's savings, governments often regulate pension funds strictly, particularly when contributions are mandatory. For example, the new funded pension systems in Latin America and Eastern Europe are more stringently regulated than private pensions in OECD countries, which are mainly voluntary. While these pension fund regulations take three different forms, this briefing focuses on one of these: quantitative restrictions on pension funds' portfolios. Quantitative restrictions on the share of particular types of assets held by the fund limit the dispersion of outcomes, particularly for defined contribution schemes. In most mandatory schemes, this leads to a 'single portfolio' environment where members of the scheme are forced to hold basically the same portfolio. Most common are limits on risky assets such as shares and corporate bonds. Often, foreign investments are curtailed. This review includes a look at the adverse effects of portfolio limits, and argues for relaxing investment rules so that pension funds can reap the benefits from international diversification.

Fuente: Banco Mundial
Clasificación: Fondos de Inversión
Tipo de Publicación: Documentos de Trabajo
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The Swiss Multi-Pillar Pension System: Triumph of Common Sense?

Autor: Queisser, Monika; Vittas, Dimitri.
Año: 2000
Resumen: The authors provide a detailed study of the Swiss pension system, analyzing its strengths and weaknesses. The unfunded public pillar is highly redistributive. It has near universal coverage, a low dispersion of benefits (the maximum public pension is twice the minimum), and no ceiling on contributions. Low-income pensioners receive means-tested supplementary benefits. Payroll taxes are low, but government transfers cover 27 percent of total benefits. Total benefits amount to 9.1 percent of GDP, equivalent to 15.2 percent of covered earnings. The funded private pillar was made compulsory in a defensive move against the relentless expansion of the public pillar. The compulsory pillar stipulates minimum benefits in the form of age-related credits, a minimum interest rate on accumulated credits, and a minimum annuity conversion factor, aimed to smooth changes in interest rates over time. Low-income workers are not required to participate in the second pillar. The first and second pillars as well as supplementary benefits are admirably integrated. Company pension plans are free to set terms and conditions in excess of these minimums, and most offer benefits exceeding obligatory levels. The second pillar has accumulated large financial resources, equivalent to 125 percent of GDP. Investment returns have historically been low, but a shift in asset allocation in favor of equities and international assets has increased reported returns in recent years. The third (voluntary) pillar covers self-employed workers and others not covered by the second pillar. It plays a rather small role in the system. Many of the positive features of the Swiss pension system are not due to some grand original design but are instead the result of periodic revisions. In large part they reflect the collective common sense of the Swiss people in voting for stable and fiscally prudent social benefits. However, the Swiss system also has some weaknesses. As in many other countries, the public pillar faces a deteriorating system dependency ratio, due to demographic aging and a large increase in disability pensions. The second pillar is fragmented (more than 4,000 funds with affiliates), lacks transparency, and has achieved low investment returns.

Fuente: Banco Mundial
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Documentos de Trabajo
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Actuarial mathematics ofsocial security pensions

Autor: Organización Internacional del Trabajo (OIT)
Año: 1999
Resumen: This book fills a gap in the actuarial literature. It deals with the application of actuarial principles and techniques to public social insurance pension schemes. Generally, these schemes are national in scope, mandatory and financed by contributions related to participants' earnings. Mature defined benefit public schemes are generally financed according to the pay-as-you-go system. Others, especially schemes in developing countries, adopt various levels of advance funding to finance the benefits. Appropriate systems for financing public defined benefit pension schemes are widely debated. This volume contributes to the discussion by highlighting aspects where the financing of social security pensions diners from the funding of occupational pension schemes. The book constitutes a ready reference for social security actuaries. While it is intended to serve as a textbook for persons engaged in actuarial work in social security institutions, it is of interest to other actuaries.

Fuente: Asociación Internacional de la Seguridad Social (AISS)
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Libros
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Modelling in health care finance

Autor: Cichon, Michael; Newbrander, William; Yamabana, Hiroshi; Weber, Axel; Normand, Charles; Dror, David; Preker, Alexander
Año: 1999
Resumen: Quantitative health care analysts around the world must constantly respond to the queries of health policy makers. These days, their main question is 'how much?'. They may ask for information that is relatively simple and straightforward - the financing provisions of existing schemes, for example. At the other end of the spectrum, they may ask for complex analyses - for example, regarding possible future scenarios. Some typical questions from policy makers include: • What would be the aggregate cost of an increase in doctors' fees by amount x? • What would we save if we were to increase co-payments by amount y? • How much does the existing system cost? • Can we afford to introduce a national health insurance scheme? If so, how would it affect the health care financing liabilities of the government, employers and employees? • Who bears the cost at present, and how can the financial burden be reallocated? This book will help analysts to answer these questions. Answers can only be derived from simpler images of complex realities - i.e. from financial models of national health care systems. The book offers instruction on how to build such models. In order to do so, analysts need to have at least a grounding in macroeconomics, health economics, health policy, financial planning and management, as well as actuarial techniques. This is a tall order for any one person. Without such knowledge, analysts run the risk of using ad hoc methodologies, which often breed uneasiness about the capacity to deal with the problems at hand. Lessons from the field experience of the ILO and other organizations are brought together in this book. Quantitative work in many countries is often done in an uncertain policy environment, with deficient data, and usually under a variety of other constraints. The approach to the subject of this book is pragmatic and output-oriented, offering a guideline for the busy professional. The book attempts to create synergies and bridge gaps between quantitative health economics, health financing and actuarial science. Field practice will put the techniques mentioned here to the test. It is intended for planners and managers in charge of national health care financing systems, as well as specialists in international technical cooperation. Theoretical, actuarial and health-related economic concepts are translated into pragmatic tools for short- to medium-term financial planning, management and monitoring. This book also follows up on a previous guidebook on health insurance published by the WHO and the ILO.1 We hope that it will prove to be a practical guide to financial modelling for the specialist, as well as a reference for modelling methodology.

Fuente: Asociación Internacional de la Seguridad Social (AISS)
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Libros
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Regulation of Withdrawals in Individual Account Systems

Autor: Walliser, Jan
Año: 1999
Resumen: Funded mandatory pension systems based on individual accounts are spreading around the world. With the maturation of these systems, regulating the withdrawal of retirement savings will become increasingly important. Government regulation of withdrawals should mandate the purchase of inflation-indexed life annuities exceeding income available from government welfare programs for the retiree and potential survivors. Proper functioning of insurance markets does not, however, require annuitizing the entire account balance. Instead, more flexibility for the choice of withdrawals could be permitted for any remaining funds, helping to tailor income streams to individual needs and living arrangements.

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

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