Designing Mandatory Pension Schemes : Some Lessons from Argentina, Chile, Malaysia, and Singapore
In most countries, participation in a public pension system involving some kind of redistribution is compulsory, while participation in private pension schemes is voluntary. There are growing fears in many countries that the value of public pensio...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1996/02/696755/designing-mandatory-pension-schemes-some-lessons-argentina-chile-malaysia-singapore http://hdl.handle.net/10986/11631 |
| Summary: | In most countries, participation in a
public pension system involving some kind of redistribution
is compulsory, while participation in private pension
schemes is voluntary. There are growing fears in many
countries that the value of public pensions will not be
sustained. There are similar fears about company pensions.
The credibility of company pensions depends on the integrity
and solvency of large employers, which can no longer be
taken for granted. These problems point to a need to refine
compulsory saving. Drawing on the experiences of countries
in Asia, Latin America, and elsewhere, this Note provides
some guidance on answering the following questions: 1) Whom
to compel? 2) Defined contribution or benefit? 3) How
large should compulsory contributions be? 4) Who should
manage the funds? 5) What types of regulation are
appropriate? 6) What state guarantees for what system? 7)
How to offer tax incentives? |
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