Publication:
Switching : The Role of choice in the Transition to a Funded Pension System

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dc.contributor.authorWorld Bank
dc.date.accessioned2012-08-13T14:27:47Z
dc.date.available2012-08-13T14:27:47Z
dc.date.issued2005-07
dc.description.abstractThe transition from a wholly public, pay-as-you go pension system to one where pensions are also provided by individual, privately managed pension accounts does not directly affect those receiving pensions at the time of the reform. Nevertheless, it could affect all current and future workers. A critical policy choice is whether these workers should be allowed, encouraged or forced to divert their pension contributions to the new private element. The note continues with an in depth analysis of the spectrum of switching strategies; and further, describes the objectives of a successful reform. First, the new scheme should aim to provide a reasonable level of retirement income. Secondly, the benefit level must be consistent with long-run fiscal policy. The diversion of payroll taxes from financing current pay-as-you-go pensions into the funded scheme will increase deficits at first, so short-term fiscal constraints are also important. Thirdly, pension reform has microeconomic objectives: improve the workings of capital and labor markets. Finally, the reform must be politically palatable. Some of the note conclusions are : older workers are best excluded from reforms, because there is little time to build substantial funds in the new private scheme; a mandatory cut-off age is arbitrary and leads to political or legal challenges; and Governments can and should manage the switching process, by altering incentives and ensuring people make informed choices.en
dc.identifierhttp://documents.worldbank.org/curated/en/2005/07/6265567/switching-role-choice-transition-funded-pension-system
dc.identifier.doi10.1596/11212
dc.identifier.urihttps://hdl.handle.net/10986/11212
dc.languageEnglish
dc.publisherWashington, DC
dc.relation.ispartofseriesWorld Bank Pension Reform Primer Series
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCRUAL RATES
dc.subjectACCRUALS
dc.subjectACCUMULATION PERIOD
dc.subjectADMINISTRATIVE COSTS
dc.subjectADVERSE SELECTION
dc.subjectBENEFIT FORMULA
dc.subjectBENEFIT LEVEL
dc.subjectBENEFIT RIGHTS
dc.subjectCAPITAL MARKETS
dc.subjectCONSTITUTION
dc.subjectCONTRIBUTION RATE
dc.subjectCONTRIBUTION RATES
dc.subjectDEFICITS
dc.subjectDISTORTIONARY TAXES
dc.subjectEMPIRICAL ANALYSIS
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEQUILIBRIUM
dc.subjectFINANCIAL DIFFICULTIES
dc.subjectFISCAL
dc.subjectFISCAL BURDEN
dc.subjectFISCAL COSTS
dc.subjectFISCAL POLICY
dc.subjectFISCAL PRESSURES
dc.subjectFUNDED COMPONENT
dc.subjectFUNDED PENSIONS
dc.subjectGOVERNMENT REVENUES
dc.subjectHUMAN DEVELOPMENT
dc.subjectHUMAN DEVELOPMENT NETWORK
dc.subjectINFLATION
dc.subjectINFLATION RISK
dc.subjectINSURANCE
dc.subjectINVESTMENT RETURNS
dc.subjectLABOR MARKETS
dc.subjectLABOR SUPPLY
dc.subjectLEGAL SYSTEM
dc.subjectMARKET RISK
dc.subjectNEW ENTRANTS
dc.subjectPAY AS YOU GO
dc.subjectPENSION COVERAGE
dc.subjectPENSION FUND
dc.subjectPENSION PLAN
dc.subjectPENSION PLANS
dc.subjectPENSION REFORM
dc.subjectPENSION RIGHTS
dc.subjectPENSION SYSTEM
dc.subjectPENSION SYSTEM REFORM
dc.subjectPENSIONS
dc.subjectPERSONAL PENSIONS
dc.subjectPOLICY DECISIONS
dc.subjectPOLITICAL ECONOMY
dc.subjectPRIVATE PENSION
dc.subjectPRIVATE PENSION FUNDS
dc.subjectPRIVATE PROPERTY
dc.subjectPRIVATIZATION
dc.subjectPRIVATIZATION PROCEEDS
dc.subjectPUBLIC FINANCES
dc.subjectPUBLIC INFORMATION
dc.subjectPUBLIC SCHEMES
dc.subjectREPLACEMENT RATE
dc.subjectRETIREMENT
dc.subjectRETIREMENT AGE
dc.subjectRETIREMENT INCOME
dc.subjectSOCIAL ASSISTANCE
dc.subjectSOCIAL PROGRAMS
dc.subjectSOCIAL PROTECTION
dc.subjectSOCIAL SECURITY
dc.subjectSOCIAL SECURITY REFORM
dc.subjectTAXATION
dc.titleSwitching : The Role of choice in the Transition to a Funded Pension Systemen
dc.title.alternativeChangement de systeme : le role du choix dans le passage a un systeme de retraite par capitalisation El cambio : la funcion de la eleccion en la transicion hacia un sistema de pensiones capitalizadoen
dspace.entity.typePublication
okr.date.doiregistration2025-04-29T10:35:23.201952Z
okr.doctypePublications & Research::Brief
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2005/07/6265567/switching-role-choice-transition-funded-pension-system
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid514351468779672722
okr.guid322121468780331153
okr.guid347821468763516551
okr.identifier.externaldocumentum000011823_20050901163354
okr.identifier.internaldocumentum6265567
okr.identifier.report33388
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/09/01/000011823_20050901163354/Rendered/PDF/333880ENGLISH0PRPNoteSwitching.pdfen
okr.topicPensions and Retirement Systems
okr.topicGovernance::Youth and Governance
okr.topicBanks and Banking Reform
okr.topicGovernance::National Governance
okr.topicEnvironmental Economics and Policies
okr.topicFinance and Financial Sector Development
okr.topicSocial Protections and Labor
okr.topicEnvironment
okr.unitSocial Protection Team (HDNSP)
okr.volume1 of 1
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