Publication:
South Asia : Pension Schemes for the Formal Sector, Emerging Challenges and Opportunities for Reform

dc.contributor.author World Bank
dc.date.accessioned 2012-06-19T15:46:32Z
dc.date.available 2012-06-19T15:46:32Z
dc.date.issued 2005-01
dc.description.abstract For centuries informal arrangements such as intra-family transfers have been the primary source of old-age income support in South Asia. That remains true even today. Current patterns suggest that only around 1 in 10 of South Asia's half a billion workers will enter old age with a pension related to pre-retirement earnings. Pension schemes in South Asia cover small shares of the population, concentrated in the formal sector (table 1). Retirement income plans for the formal sector have for the most part performed poorly-both for their participants and for the economy. But while several countries in the region are exploring or already introducing reforms of civil service pension schemes, the performance of retirement income schemes available to the rest of the formal sector has received far less attention. The policy framework for most of these programs has barely changed since they were created, in some cases nearly half a century ago. Moreover, these schemes involve even more complex political economy issues, because governments have often used their funded (or partially funded) structures to address fiscal gaps. Now is a critical time to consider more broadly the problems affecting retirement income schemes for the formal sector. The two defined benefit programs in India and Pakistan, for example, have not yet matured. As time passes, future pension promises will become more deeply entrenched, making reform even more challenging. And as funded plans continue to grow, there is a risk of further misallocation of savings. Perhaps more important, there are encouraging signs of economic growth in the region and thus good possibilities for expanding the coverage of these programs. But even as a growing number of younger workers join the formal labor market and thus formal retirement schemes, urbanization is likely to weaken traditional informal arrangements for the elderly, including intra-family transfers. Strengthening retirement income schemes for the formal sector will help the region better prepare for the demographic change occurring over the next half century. This report seeks to provide a framework for improving the performance of pension schemes for the formal sector. After an introduction, Chapter 2 examines civil service pension schemes, chapter 3 focuses on mandatory private sector schemes, chapter 3 discusses the expansion of voluntary retirement savings arrangements, and chapter 5 is directed toward improving the business environment for retirement savings schemes. Chapter 6 presents conclusions. en
dc.identifier http://documents.worldbank.org/curated/en/2005/01/6534626/south-asia-pension-schemes-formal-sector-emerging-challenges-opportunities-reform
dc.identifier.isbn 955-8908-18-5
dc.identifier.uri http://hdl.handle.net/10986/8424
dc.language English
dc.language.iso en_US
dc.publisher Washington, DC
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject ACCRUAL RATES
dc.subject ADVERSE EFFECTS
dc.subject ANNUITIES
dc.subject ANNUITIES MARKETS
dc.subject ANNUITY
dc.subject ASSET MANAGEMENT
dc.subject AVERAGE WAGE
dc.subject BANK DEPOSITS
dc.subject BASE YEAR
dc.subject BENCHMARK
dc.subject BENEFICIARIES
dc.subject BONDS
dc.subject BUDGET CONSTRAINTS
dc.subject CAPITAL MARKETS
dc.subject CD
dc.subject CERTIFICATE OF DEPOSIT
dc.subject COMPENSATION PACKAGE
dc.subject CONSUMER PRICE INDEX
dc.subject CONTRIBUTION RATE
dc.subject CONTRIBUTION RATES
dc.subject CONTRIBUTORY PROGRAMS
dc.subject COVERAGE
dc.subject DEFINED BENEFIT PLANS
dc.subject DEFINED BENEFIT SCHEMES
dc.subject DEFINED CONTRIBUTION PLANS
dc.subject DEPENDENCY RATIO
dc.subject DISCOUNT RATE
dc.subject DISCOUNTED VALUE
dc.subject EXCHANGE RATES
dc.subject EXPECTED PRESENT VALUE
dc.subject FINANCIAL SECTOR
dc.subject FORMAL LABOR MARKET
dc.subject FORMAL SECTOR WORKERS
dc.subject FUNDED COMPONENT
dc.subject FUNDED SCHEMES
dc.subject GDP
dc.subject GOVERNMENT BONDS
dc.subject GROSS DOMESTIC PRODUCT
dc.subject GUARANTEED BENEFIT
dc.subject INADEQUATE SUPERVISION
dc.subject INCOME GROUPS
dc.subject INCOME SECURITY
dc.subject INCOME SUPPORT
dc.subject INFLATION
dc.subject INFLATION RISK
dc.subject INFORMAL SECTOR
dc.subject INSTITUTIONAL ARRANGEMENTS
dc.subject INSTITUTIONAL STRUCTURE
dc.subject INSURANCE COMPANY
dc.subject INVESTMENT GUIDELINES
dc.subject INVESTMENT PERFORMANCE
dc.subject INVESTMENT POLICIES
dc.subject INVESTMENT RETURNS
dc.subject JOINT ANNUITY
dc.subject LABOR FORCE
dc.subject LABOR MOBILITY
dc.subject LIFE EXPECTANCY
dc.subject LIFE INSURANCE
dc.subject LIFETIME EARNINGS
dc.subject LIQUIDITY
dc.subject MANAGEMENT STRUCTURES
dc.subject MANDATORY RETIREMENT
dc.subject MANDATORY SCHEMES
dc.subject MEDIUM-SIZE ENTERPRISES
dc.subject MOBILITY OF LABOR
dc.subject OCCUPATIONAL SCHEMES
dc.subject OCCUPATIONS
dc.subject OLD AGE BENEFITS
dc.subject PAY AS YOU GO
dc.subject PENSION FUND
dc.subject PENSION FUNDS
dc.subject PENSION LIABILITIES
dc.subject PENSION PLAN
dc.subject PENSION PLANS
dc.subject PENSION REFORM
dc.subject PENSION REFORMS
dc.subject PENSION REGULATION
dc.subject PENSION RIGHTS
dc.subject PENSION SCHEMES
dc.subject PENSION SYSTEM
dc.subject PENSION SYSTEMS
dc.subject PENSIONS
dc.subject PILLAR SYSTEM
dc.subject POLITICAL ECONOMY
dc.subject PORTFOLIO CHOICE
dc.subject PRESENT VALUE
dc.subject PRICE INDEXATION
dc.subject PRIMARY SOURCE
dc.subject PRIVATE FIRMS
dc.subject PRIVATE PENSION
dc.subject PRIVATE PENSION FUNDS
dc.subject PRIVATE SECTOR
dc.subject PRIVATE SECTOR DEVELOPMENT
dc.subject PRIVATE SECTOR WORKERS
dc.subject PRIVATE SECTORS
dc.subject PROVIDENT FUNDS
dc.subject PUBLIC DEBT
dc.subject PUBLIC SECTOR
dc.subject PUBLIC SECTOR EMPLOYEES
dc.subject REGULATORY FRAMEWORK
dc.subject REPLACEMENT RATE
dc.subject REPLACEMENT RATES
dc.subject RESERVES
dc.subject RETIREES
dc.subject RETIREMENT
dc.subject RETIREMENT AGE
dc.subject RETIREMENT INCOME
dc.subject RETIREMENT INCOME SYSTEMS
dc.subject RETIREMENT PLANS
dc.subject RETIREMENT PROGRAMS
dc.subject RETIREMENT SAVINGS
dc.subject SEASONAL WORKERS
dc.subject SECURITIES
dc.subject SERVANTS
dc.subject SOCIAL POLICY
dc.subject SOCIAL SAFETY NET
dc.subject SOUTH ASIAN
dc.subject STATE GOVERNMENT
dc.subject STATE-OWNED ENTERPRISES
dc.subject SUPERVISORY CAPACITY
dc.subject SUPERVISORY FRAMEWORK
dc.subject SUSTAINABILITY
dc.subject TAX REVENUES
dc.subject TAX TREATMENT
dc.subject UNFUNDED LIABILITIES
dc.subject VOLUNTARY PENSION SCHEMES
dc.subject WAGE COMPRESSION
dc.subject WAGE DIFFERENTIALS
dc.subject WAGE PREMIUM
dc.subject WAGES
dc.subject WORKER
dc.subject YOUNGER WORKERS
dc.title South Asia : Pension Schemes for the Formal Sector, Emerging Challenges and Opportunities for Reform en
dspace.entity.type Publication
okr.crosscuttingsolutionarea Jobs
okr.date.disclosure 2006-01-13
okr.doctype Economic & Sector Work :: Other Social Protection Study
okr.doctype Economic & Sector Work
okr.docurl http://documents.worldbank.org/curated/en/2005/01/6534626/south-asia-pension-schemes-formal-sector-emerging-challenges-opportunities-reform
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Social Protection and Labor
okr.globalpractice Finance and Markets
okr.globalpractice Governance
okr.identifier.externaldocumentum 000160016_20060113171940
okr.identifier.internaldocumentum 6534626
okr.identifier.report 34940
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/01/13/000160016_20060113171940/Rendered/PDF/349401SA0Pension0Report0Final0Version.pdf en
okr.region.administrative South Asia
okr.sector Non-compulsory pensions
okr.sector insurance and contractual savings
okr.sector Finance
okr.sector Public Administration
okr.sector Law
okr.sector Public Administration, Law, and Justice
okr.sector General public administration sector
okr.sector Compulsory pension and unemployment insurance
okr.topic Economic Theory and Research
okr.topic Pensions and Retirement Systems
okr.topic State Owned Enterprise Reform
okr.topic Insurance and Risk Mitigation
okr.topic Social Protections and Labor :: Labor Markets
okr.topic Finance and Financial Sector Development
okr.topic Macroeconomics and Economic Growth
okr.topic Public Sector Development
okr.unit Finance & PSD Sector Unit (SASFP)
okr.volume 1 of 1
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