Old-Age Income Support in the 21st Century : an International Perspective on Pension Systems and Reform

Print version:

Cover

Contents

Preface

Acronyms and Abbreviations

Introduction and Executive Summary

A Framework for Pension Reform

Design and Implementation Issues

Structure of the Report

PART 1. CONCEPTUAL UNDERPINNINGS

1 The Need for Reform

Fiscal Pressure: Short-Term Urgencies and Long-Term Needs

Delivering on Promises

Aligning Systems with Socioeconomic Changes

Challenges and Opportunities of Globalization

The Contours of Promising Reform Directions

2 Conceptual Foundations of the World Bank's Perspective

The Social Risk Management Framework

Rationale for Public Intervention

The Multipillar Approach: Diversification and Efficiency

The (Net) Benefits of Funding

A Benchmark, Not a Blueprint

3 Goals and Criteria That Define the World Bank's Perspective

Primary Goals: Adequate, Affordable, Sustainable, and Robust Pensions

Secondary Goal: Contribution to Economic Development

Reform Criteria

4 World Bank Lending to Support Pension Reform

Scope of the World Bank's Pension Lending

Diversity of Pension Reforms

PART 2. DESIGN AND IMPLEMENTATION ISSUES

5 General and Country-Specific Options for the Reform of Pension Systems

General Options for Reform

Country-Specific Options for Reform: Policy Progression and Path Dependency

Conclusions

6 Key Reform Issues: Firm Positions and Open Questions

Pillar Design, Poverty Relief, and Redistribution

Financial Sustainability Issues

Management of Public Pension Funds

Administrative and Implementation Issues

Readiness and Regulatory and Supervisory Financial Market Issues

Political Economy and Organization of Pension Reforms

Examples of Reform Dilemmas and Questions

7 Regional Experiences: Developments and First Evaluation of Reform

Latin America and the Caribbean

Central and Eastern Europe and Central Asia

South Asia

Sub-Saharan Africa

Middle East and North Africa

East Asia

8 Final Remarks

Appendix: Tables on Old-Age Income Poverty

Endnotes

Glossary

References

Contributors

FIGURES

4.1 Timing of World Bank Loans to Multipillar Schemes, by Number of Loans

4.2 Timing of World Bank Loans to Multipillar Schemes, by Amount of Loans

6.1 Parallel and Integrated Civil Service Pensions, by Region

6.2 Distribution and Importance of Public Pension Funds, by Region

6.3 Combined Collection and Clearinghouse

6.4 Decentralized Funded Pillar in Chile and Hungary

TABLES

1 Multipillar Pension Taxonomy

4.1 World Bank Lending with Pension Components, Fiscal 1984-2004

4.2 Regional Distribution of World Bank Lending Activities, 1984-2004

4.3 World Bank Pension-Related Lending Classified by Pillar Support, 1984-2004

4.4 Proportion of Pension-Related Lending for Second-Pillar Implementation, 1984-2004

4.5 World Bank Lending for Reforms with a Dominant Second Pillar, 1984-2004

5.1 Multipillar Pension Taxonomy

5.2 Stylized Reform Choices for Countries: Matching Reform Needs with Constraints and Opportunities

7.1 Principal Features of Structural Reforms to Social Security Systems (Old-Age Disability and Death) in Latin America, 1980s and 1990s

7.2