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

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dc.contributor.authorWorld Bank
dc.date.accessioned2012-06-19T15:46:32Z
dc.date.available2012-06-19T15:46:32Z
dc.date.issued2005-01
dc.description.abstractFor 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.identifierhttp://documents.worldbank.org/curated/en/2005/01/6534626/south-asia-pension-schemes-formal-sector-emerging-challenges-opportunities-reform
dc.identifier.doi10.1596/955-8908-18-5
dc.identifier.isbn955-8908-18-5
dc.identifier.urihttps://hdl.handle.net/10986/8424
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCRUAL RATES
dc.subjectADVERSE EFFECTS
dc.subjectANNUITIES
dc.subjectANNUITIES MARKETS
dc.subjectANNUITY
dc.subjectASSET MANAGEMENT
dc.subjectAVERAGE WAGE
dc.subjectBANK DEPOSITS
dc.subjectBASE YEAR
dc.subjectBENCHMARK
dc.subjectBENEFICIARIES
dc.subjectBONDS
dc.subjectBUDGET CONSTRAINTS
dc.subjectCAPITAL MARKETS
dc.subjectCD
dc.subjectCERTIFICATE OF DEPOSIT
dc.subjectCOMPENSATION PACKAGE
dc.subjectCONSUMER PRICE INDEX
dc.subjectCONTRIBUTION RATE
dc.subjectCONTRIBUTION RATES
dc.subjectCONTRIBUTORY PROGRAMS
dc.subjectCOVERAGE
dc.subjectDEFINED BENEFIT PLANS
dc.subjectDEFINED BENEFIT SCHEMES
dc.subjectDEFINED CONTRIBUTION PLANS
dc.subjectDEPENDENCY RATIO
dc.subjectDISCOUNT RATE
dc.subjectDISCOUNTED VALUE
dc.subjectEXCHANGE RATES
dc.subjectEXPECTED PRESENT VALUE
dc.subjectFINANCIAL SECTOR
dc.subjectFORMAL LABOR MARKET
dc.subjectFORMAL SECTOR WORKERS
dc.subjectFUNDED COMPONENT
dc.subjectFUNDED SCHEMES
dc.subjectGDP
dc.subjectGOVERNMENT BONDS
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGUARANTEED BENEFIT
dc.subjectINADEQUATE SUPERVISION
dc.subjectINCOME GROUPS
dc.subjectINCOME SECURITY
dc.subjectINCOME SUPPORT
dc.subjectINFLATION
dc.subjectINFLATION RISK
dc.subjectINFORMAL SECTOR
dc.subjectINSTITUTIONAL ARRANGEMENTS
dc.subjectINSTITUTIONAL STRUCTURE
dc.subjectINSURANCE COMPANY
dc.subjectINVESTMENT GUIDELINES
dc.subjectINVESTMENT PERFORMANCE
dc.subjectINVESTMENT POLICIES
dc.subjectINVESTMENT RETURNS
dc.subjectJOINT ANNUITY
dc.subjectLABOR FORCE
dc.subjectLABOR MOBILITY
dc.subjectLIFE EXPECTANCY
dc.subjectLIFE INSURANCE
dc.subjectLIFETIME EARNINGS
dc.subjectLIQUIDITY
dc.subjectMANAGEMENT STRUCTURES
dc.subjectMANDATORY RETIREMENT
dc.subjectMANDATORY SCHEMES
dc.subjectMEDIUM-SIZE ENTERPRISES
dc.subjectMOBILITY OF LABOR
dc.subjectOCCUPATIONAL SCHEMES
dc.subjectOCCUPATIONS
dc.subjectOLD AGE BENEFITS
dc.subjectPAY AS YOU GO
dc.subjectPENSION FUND
dc.subjectPENSION FUNDS
dc.subjectPENSION LIABILITIES
dc.subjectPENSION PLAN
dc.subjectPENSION PLANS
dc.subjectPENSION REFORM
dc.subjectPENSION REFORMS
dc.subjectPENSION REGULATION
dc.subjectPENSION RIGHTS
dc.subjectPENSION SCHEMES
dc.subjectPENSION SYSTEM
dc.subjectPENSION SYSTEMS
dc.subjectPENSIONS
dc.subjectPILLAR SYSTEM
dc.subjectPOLITICAL ECONOMY
dc.subjectPORTFOLIO CHOICE
dc.subjectPRESENT VALUE
dc.subjectPRICE INDEXATION
dc.subjectPRIMARY SOURCE
dc.subjectPRIVATE FIRMS
dc.subjectPRIVATE PENSION
dc.subjectPRIVATE PENSION FUNDS
dc.subjectPRIVATE SECTOR
dc.subjectPRIVATE SECTOR DEVELOPMENT
dc.subjectPRIVATE SECTOR WORKERS
dc.subjectPRIVATE SECTORS
dc.subjectPROVIDENT FUNDS
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC SECTOR
dc.subjectPUBLIC SECTOR EMPLOYEES
dc.subjectREGULATORY FRAMEWORK
dc.subjectREPLACEMENT RATE
dc.subjectREPLACEMENT RATES
dc.subjectRESERVES
dc.subjectRETIREES
dc.subjectRETIREMENT
dc.subjectRETIREMENT AGE
dc.subjectRETIREMENT INCOME
dc.subjectRETIREMENT INCOME SYSTEMS
dc.subjectRETIREMENT PLANS
dc.subjectRETIREMENT PROGRAMS
dc.subjectRETIREMENT SAVINGS
dc.subjectSEASONAL WORKERS
dc.subjectSECURITIES
dc.subjectSERVANTS
dc.subjectSOCIAL POLICY
dc.subjectSOCIAL SAFETY NET
dc.subjectSOUTH ASIAN
dc.subjectSTATE GOVERNMENT
dc.subjectSTATE-OWNED ENTERPRISES
dc.subjectSUPERVISORY CAPACITY
dc.subjectSUPERVISORY FRAMEWORK
dc.subjectSUSTAINABILITY
dc.subjectTAX REVENUES
dc.subjectTAX TREATMENT
dc.subjectUNFUNDED LIABILITIES
dc.subjectVOLUNTARY PENSION SCHEMES
dc.subjectWAGE COMPRESSION
dc.subjectWAGE DIFFERENTIALS
dc.subjectWAGE PREMIUM
dc.subjectWAGES
dc.subjectWORKER
dc.subjectYOUNGER WORKERS
dc.titleSouth Asia : Pension Schemes for the Formal Sector, Emerging Challenges and Opportunities for Reformen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.date.disclosure2006-01-13
okr.date.doiregistration2025-05-07T09:23:54.987599Z
okr.doctypeEconomic & Sector Work::Other Social Protection Study
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/2005/01/6534626/south-asia-pension-schemes-formal-sector-emerging-challenges-opportunities-reform
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid590791468306292683
okr.identifier.externaldocumentum000160016_20060113171940
okr.identifier.internaldocumentum6534626
okr.identifier.report34940
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/01/13/000160016_20060113171940/Rendered/PDF/349401SA0Pension0Report0Final0Version.pdfen
okr.region.administrativeSouth Asia
okr.sectorNon-compulsory pensions
okr.sectorinsurance and contractual savings
okr.sectorFinance
okr.sectorPublic Administration
okr.sectorLaw
okr.sectorPublic Administration, Law, and Justice
okr.sectorGeneral public administration sector
okr.sectorCompulsory pension and unemployment insurance
okr.topicEconomic Theory and Research
okr.topicPensions and Retirement Systems
okr.topicState Owned Enterprise Reform
okr.topicInsurance and Risk Mitigation
okr.topicSocial Protections and Labor::Labor Markets
okr.topicFinance and Financial Sector Development
okr.topicMacroeconomics and Economic Growth
okr.topicPublic Sector Development
okr.unitFinance & PSD Sector Unit (SASFP)
okr.volume1 of 1
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