Publication: Collection : Transferring Contributions to Individual Pension Accounts
Collecting contributions is more complicated in a decentralized pension system, based on individual accounts, than in a public system. Many public plans provide a defined benefit pension based on only a few years' earnings, which limits the need for keeping records of people's earnings and contributions in every year of their working life. And there is usually a choice of pension fund manager with individual accounts. Collection, record-keeping and transferring contributions to individual accounts has often proved problematic. Some reforms have been delayed or abandoned because of collection problems. Using a series of case studies of Latin American and European countries, this briefing highlights policy choices in operating individual accounts systems.
“World Bank. 2000. Collection : Transferring Contributions to Individual Pension Accounts. World Bank Pension Reform Primer Series. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/dd69e55e-6cbe-525c-8eec-5777975a31c4 License: CC BY 3.0 IGO.”