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 ne...

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Bibliographic Details
Main Author: World Bank
Format: Brief
Language:English
Published: Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2000/01/6244001/collection-transferring-contributions-individual-pension-accounts
http://hdl.handle.net/10986/11442
Description
Summary: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.