Financial Sector Dimensions of the Colombian Pension System

This paper provides an assessment of the funded pension system and the quality of the regulatory framework for both accumulation and payout phase. It suggests that the lack of portfolio diversification may contribute in the future to low returns an...

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Main Authors:	Rudolph, Heinz, Cheikhrouhou, Hela, Rocha, Roberto, Thorburn, Craig
Format:	Publication
Language:	English en_US
Published:	Washington, DC: World Bank 2012
Subjects:	ACCOUNTING AGE-EARNINGS AGE-EARNINGS PROFILES ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET MANAGERS AVERAGE WAGE BANKING CRISIS BANKRUPTCY BANKS BARRIER TO ENTRY BASE WAGE BASIS POINTS BENEFICIARIES BENEFIT FORMULA BOND FUNDS BOND SPREADS CAPITAL GAIN CAPITAL GAINS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL REQUIREMENTS CDS CENTRAL BANK CONTINGENT LIABILITY CONTRIBUTION CONTRIBUTION RATE CONTRIBUTION RATES CONTRIBUTIONS CORPORATE BOND CORPORATE BOND MARKET CORPORATE BONDS CORPORATE GOVERNANCE CREDIBILITY CREDIT RISK CURRENCY CURRENCY RISK DEBT FINANCING DEFICITS DERIVATIVES DISCOUNT RATE DIVERSIFIED PORTFOLIOS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC DEBT DOMESTIC EQUITY ECONOMIC DEVELOPMENT ELIGIBLE INVESTMENTS EMPLOYMENT HISTORY EQUITY FUNDS EQUITY HOLDINGS EXPENDITURES EXTERNAL DEBT FEDERAL BUDGET FINANCIAL ASSETS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL BURDEN FISCAL DEFICIT FISCAL POLICY FIXED INCOME FIXED INCOME MARKET FIXED INCOME SECURITIES FOREIGN EQUITY FOREIGN EXCHANGE FOREIGN INVESTMENTS FOREIGN MARKET FOREIGN MARKETS FUND MANAGERS GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT PAPER GUARANTEE FUND HOLDING HOLDINGS OF GOVERNMENT SECURITIES INCOME INSTRUMENTS INCOME SECURITY INCOMES INDEPENDENT FINANCIAL ADVICE INDIVIDUAL ACCOUNT INDIVIDUAL ACCOUNTS INDIVIDUAL PENSION INFLATION INFLATION RATE INFORMED DECISION INFRASTRUCTURE BOND INFRASTRUCTURE BONDS INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE INDUSTRY INSURANCE PENETRATION INSURANCE POLICY INSURANCE PREMIUM INSURANCE PREMIUMS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL PORTFOLIO INVESTMENT CORPORATION INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT PORTFOLIOS INVESTMENT REGIME INVESTMENT REGULATION INVESTMENT REGULATIONS INVESTMENT STRATEGIES INVESTMENTS IN EQUITY ISSUANCE JOINT STOCK COMPANIES LABOR FORCE LABOR MARKET LABOR MARKETS LEVY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIFE INSURANCE PREMIUMS LIQUIDITY LONG-TERM ASSETS LUMP SUM LUMP SUMS MARKET CAPITALIZATION MARKET FOR GOVERNMENT SECURITIES MARKET INSTRUMENTS MARKET PARTICIPANTS MARKET SHARE MARKET SHARES MARKET STRUCTURE MATURITY MINIMUM CONTRIBUTION MINIMUM PENSION MINIMUM WAGE MINIMUM WAGES MONEY MARKET MORTGAGE MORTGAGE BONDS MORTGAGE-BACKED SECURITIES MUTUAL FUND MUTUAL FUND INDUSTRY MUTUAL FUNDS NATIONAL SAVINGS NOMINAL YIELD PENSION PENSION ASSETS PENSION FUND PENSION FUND ADMINISTRATORS PENSION FUND ASSETS PENSION FUND INVESTMENTS PENSION FUND RETURNS PENSION FUNDS PENSION REFORM PENSION SCHEME PENSION SCHEMES PENSION SYSTEM PENSION SYSTEM REFORMS PENSION SYSTEMS PENSIONERS PENSIONS PORTFOLIO PORTFOLIO ALLOCATION PORTFOLIO DIVERSIFICATION PORTFOLIO MANAGEMENT PORTFOLIO REGULATION PORTFOLIOS PORTFOLIOS OF PENSION FUNDS POVERTY ALLEVIATION PRIMARY MARKET PRIVATE EQUITY PRIVATE PENSION PRIVATE PENSION FUND PRIVATE PENSION FUNDS PUBLIC DEBT PUBLIC SECTOR DEBT RATE OF GROWTH RATE OF RETURN RATES OF RETURN REGULATORY CONSTRAINTS REGULATORY FRAMEWORK RESERVE RESERVES RETIRED RETIRED WORKERS RETIREMENT RETIREMENT AGE RETIREMENT PRODUCTS RETURNS RETURNS ON EQUITY SAFETY NET SALES SALES AGENTS SECONDARY MARKET SHARE OF GOVERNMENT SECURITIES SHAREHOLDERS SOCIAL ASSISTANCE SOCIAL SECURITY SOLVENCY SOVEREIGN RISK STOCK EXCHANGE STOCKS SUPERVISORY AGENCY TAX TAX REGIME TAX RULES TERM DEPOSITS TOTAL DEBT TREASURY TREASURY BONDS TURNOVER VALUABLE WAGE WAGE GROWTH WAGES WITHDRAWAL WORKING LIFE WORKING LIVES YIELD CURVE YIELD CURVES
Online Access:	http://documents.worldbank.org/curated/en/2007/01/8100922/financial-sector-dimensions-colombian-pension-system http://hdl.handle.net/10986/6785

id	okr-10986-6785
recordtype	oai_dc
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ACCOUNTING AGE-EARNINGS AGE-EARNINGS PROFILES ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET MANAGERS AVERAGE WAGE BANKING CRISIS BANKRUPTCY BANKS BARRIER TO ENTRY BASE WAGE BASIS POINTS BENEFICIARIES BENEFIT FORMULA BOND FUNDS BOND SPREADS CAPITAL GAIN CAPITAL GAINS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL REQUIREMENTS CDS CENTRAL BANK CONTINGENT LIABILITY CONTRIBUTION CONTRIBUTION RATE CONTRIBUTION RATES CONTRIBUTIONS CORPORATE BOND CORPORATE BOND MARKET CORPORATE BONDS CORPORATE GOVERNANCE CREDIBILITY CREDIT RISK CURRENCY CURRENCY RISK DEBT FINANCING DEFICITS DERIVATIVES DISCOUNT RATE DIVERSIFIED PORTFOLIOS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC DEBT DOMESTIC EQUITY ECONOMIC DEVELOPMENT ELIGIBLE INVESTMENTS EMPLOYMENT HISTORY EQUITY FUNDS EQUITY HOLDINGS EXPENDITURES EXTERNAL DEBT FEDERAL BUDGET FINANCIAL ASSETS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL BURDEN FISCAL DEFICIT FISCAL POLICY FIXED INCOME FIXED INCOME MARKET FIXED INCOME SECURITIES FOREIGN EQUITY FOREIGN EXCHANGE FOREIGN INVESTMENTS FOREIGN MARKET FOREIGN MARKETS FUND MANAGERS GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT PAPER GUARANTEE FUND HOLDING HOLDINGS OF GOVERNMENT SECURITIES INCOME INSTRUMENTS INCOME SECURITY INCOMES INDEPENDENT FINANCIAL ADVICE INDIVIDUAL ACCOUNT INDIVIDUAL ACCOUNTS INDIVIDUAL PENSION INFLATION INFLATION RATE INFORMED DECISION INFRASTRUCTURE BOND INFRASTRUCTURE BONDS INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE INDUSTRY INSURANCE PENETRATION INSURANCE POLICY INSURANCE PREMIUM INSURANCE PREMIUMS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL PORTFOLIO INVESTMENT CORPORATION INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT PORTFOLIOS INVESTMENT REGIME INVESTMENT REGULATION INVESTMENT REGULATIONS INVESTMENT STRATEGIES INVESTMENTS IN EQUITY ISSUANCE JOINT STOCK COMPANIES LABOR FORCE LABOR MARKET LABOR MARKETS LEVY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIFE INSURANCE PREMIUMS LIQUIDITY LONG-TERM ASSETS LUMP SUM LUMP SUMS MARKET CAPITALIZATION MARKET FOR GOVERNMENT SECURITIES MARKET INSTRUMENTS MARKET PARTICIPANTS MARKET SHARE MARKET SHARES MARKET STRUCTURE MATURITY MINIMUM CONTRIBUTION MINIMUM PENSION MINIMUM WAGE MINIMUM WAGES MONEY MARKET MORTGAGE MORTGAGE BONDS MORTGAGE-BACKED SECURITIES MUTUAL FUND MUTUAL FUND INDUSTRY MUTUAL FUNDS NATIONAL SAVINGS NOMINAL YIELD PENSION PENSION ASSETS PENSION FUND PENSION FUND ADMINISTRATORS PENSION FUND ASSETS PENSION FUND INVESTMENTS PENSION FUND RETURNS PENSION FUNDS PENSION REFORM PENSION SCHEME PENSION SCHEMES PENSION SYSTEM PENSION SYSTEM REFORMS PENSION SYSTEMS PENSIONERS PENSIONS PORTFOLIO PORTFOLIO ALLOCATION PORTFOLIO DIVERSIFICATION PORTFOLIO MANAGEMENT PORTFOLIO REGULATION PORTFOLIOS PORTFOLIOS OF PENSION FUNDS POVERTY ALLEVIATION PRIMARY MARKET PRIVATE EQUITY PRIVATE PENSION PRIVATE PENSION FUND PRIVATE PENSION FUNDS PUBLIC DEBT PUBLIC SECTOR DEBT RATE OF GROWTH RATE OF RETURN RATES OF RETURN REGULATORY CONSTRAINTS REGULATORY FRAMEWORK RESERVE RESERVES RETIRED RETIRED WORKERS RETIREMENT RETIREMENT AGE RETIREMENT PRODUCTS RETURNS RETURNS ON EQUITY SAFETY NET SALES SALES AGENTS SECONDARY MARKET SHARE OF GOVERNMENT SECURITIES SHAREHOLDERS SOCIAL ASSISTANCE SOCIAL SECURITY SOLVENCY SOVEREIGN RISK STOCK EXCHANGE STOCKS SUPERVISORY AGENCY TAX TAX REGIME TAX RULES TERM DEPOSITS TOTAL DEBT TREASURY TREASURY BONDS TURNOVER VALUABLE WAGE WAGE GROWTH WAGES WITHDRAWAL WORKING LIFE WORKING LIVES YIELD CURVE YIELD CURVES
spellingShingle	ACCOUNTING AGE-EARNINGS AGE-EARNINGS PROFILES ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET MANAGERS AVERAGE WAGE BANKING CRISIS BANKRUPTCY BANKS BARRIER TO ENTRY BASE WAGE BASIS POINTS BENEFICIARIES BENEFIT FORMULA BOND FUNDS BOND SPREADS CAPITAL GAIN CAPITAL GAINS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL REQUIREMENTS CDS CENTRAL BANK CONTINGENT LIABILITY CONTRIBUTION CONTRIBUTION RATE CONTRIBUTION RATES CONTRIBUTIONS CORPORATE BOND CORPORATE BOND MARKET CORPORATE BONDS CORPORATE GOVERNANCE CREDIBILITY CREDIT RISK CURRENCY CURRENCY RISK DEBT FINANCING DEFICITS DERIVATIVES DISCOUNT RATE DIVERSIFIED PORTFOLIOS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC DEBT DOMESTIC EQUITY ECONOMIC DEVELOPMENT ELIGIBLE INVESTMENTS EMPLOYMENT HISTORY EQUITY FUNDS EQUITY HOLDINGS EXPENDITURES EXTERNAL DEBT FEDERAL BUDGET FINANCIAL ASSETS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL BURDEN FISCAL DEFICIT FISCAL POLICY FIXED INCOME FIXED INCOME MARKET FIXED INCOME SECURITIES FOREIGN EQUITY FOREIGN EXCHANGE FOREIGN INVESTMENTS FOREIGN MARKET FOREIGN MARKETS FUND MANAGERS GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT PAPER GUARANTEE FUND HOLDING HOLDINGS OF GOVERNMENT SECURITIES INCOME INSTRUMENTS INCOME SECURITY INCOMES INDEPENDENT FINANCIAL ADVICE INDIVIDUAL ACCOUNT INDIVIDUAL ACCOUNTS INDIVIDUAL PENSION INFLATION INFLATION RATE INFORMED DECISION INFRASTRUCTURE BOND INFRASTRUCTURE BONDS INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE INDUSTRY INSURANCE PENETRATION INSURANCE POLICY INSURANCE PREMIUM INSURANCE PREMIUMS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL PORTFOLIO INVESTMENT CORPORATION INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT PORTFOLIOS INVESTMENT REGIME INVESTMENT REGULATION INVESTMENT REGULATIONS INVESTMENT STRATEGIES INVESTMENTS IN EQUITY ISSUANCE JOINT STOCK COMPANIES LABOR FORCE LABOR MARKET LABOR MARKETS LEVY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIFE INSURANCE PREMIUMS LIQUIDITY LONG-TERM ASSETS LUMP SUM LUMP SUMS MARKET CAPITALIZATION MARKET FOR GOVERNMENT SECURITIES MARKET INSTRUMENTS MARKET PARTICIPANTS MARKET SHARE MARKET SHARES MARKET STRUCTURE MATURITY MINIMUM CONTRIBUTION MINIMUM PENSION MINIMUM WAGE MINIMUM WAGES MONEY MARKET MORTGAGE MORTGAGE BONDS MORTGAGE-BACKED SECURITIES MUTUAL FUND MUTUAL FUND INDUSTRY MUTUAL FUNDS NATIONAL SAVINGS NOMINAL YIELD PENSION PENSION ASSETS PENSION FUND PENSION FUND ADMINISTRATORS PENSION FUND ASSETS PENSION FUND INVESTMENTS PENSION FUND RETURNS PENSION FUNDS PENSION REFORM PENSION SCHEME PENSION SCHEMES PENSION SYSTEM PENSION SYSTEM REFORMS PENSION SYSTEMS PENSIONERS PENSIONS PORTFOLIO PORTFOLIO ALLOCATION PORTFOLIO DIVERSIFICATION PORTFOLIO MANAGEMENT PORTFOLIO REGULATION PORTFOLIOS PORTFOLIOS OF PENSION FUNDS POVERTY ALLEVIATION PRIMARY MARKET PRIVATE EQUITY PRIVATE PENSION PRIVATE PENSION FUND PRIVATE PENSION FUNDS PUBLIC DEBT PUBLIC SECTOR DEBT RATE OF GROWTH RATE OF RETURN RATES OF RETURN REGULATORY CONSTRAINTS REGULATORY FRAMEWORK RESERVE RESERVES RETIRED RETIRED WORKERS RETIREMENT RETIREMENT AGE RETIREMENT PRODUCTS RETURNS RETURNS ON EQUITY SAFETY NET SALES SALES AGENTS SECONDARY MARKET SHARE OF GOVERNMENT SECURITIES SHAREHOLDERS SOCIAL ASSISTANCE SOCIAL SECURITY SOLVENCY SOVEREIGN RISK STOCK EXCHANGE STOCKS SUPERVISORY AGENCY TAX TAX REGIME TAX RULES TERM DEPOSITS TOTAL DEBT TREASURY TREASURY BONDS TURNOVER VALUABLE WAGE WAGE GROWTH WAGES WITHDRAWAL WORKING LIFE WORKING LIVES YIELD CURVE YIELD CURVES Rudolph, Heinz Cheikhrouhou, Hela Rocha, Roberto Thorburn, Craig Financial Sector Dimensions of the Colombian Pension System
geographic_facet	Latin America & Caribbean Colombia
relation	World Bank Working Paper No.106
description	This paper provides an assessment of the funded pension system and the quality of the regulatory framework for both accumulation and payout phase. It suggests that the lack of portfolio diversification may contribute in the future to low returns and poor pensions and provides a number of recommendations to expand the opportunities of investments to pension funds. The paper also finds that pension fund administrators are not exploiting the scale economies in certain areas of the business such as collection of revenues and account management, and propose mechanisms to reduce costs and increase efficiency through greater competition. The paper examines the products and options offered at the retirement age, and finds a bias toward the payment of pensions in the form of lump sums and suggests alternatives for improving the availability of other instruments. Enhancements in the regulatory framework of insurance companies are also proposed.
format	Publications & Research :: Publication
author	Rudolph, Heinz Cheikhrouhou, Hela Rocha, Roberto Thorburn, Craig
author_facet	Rudolph, Heinz Cheikhrouhou, Hela Rocha, Roberto Thorburn, Craig
author_sort	Rudolph, Heinz
title	Financial Sector Dimensions of the Colombian Pension System
title_short	Financial Sector Dimensions of the Colombian Pension System
title_full	Financial Sector Dimensions of the Colombian Pension System
title_fullStr	Financial Sector Dimensions of the Colombian Pension System
title_full_unstemmed	Financial Sector Dimensions of the Colombian Pension System
title_sort	financial sector dimensions of the colombian pension system
publisher	Washington, DC: World Bank
publishDate	2012
url	http://documents.worldbank.org/curated/en/2007/01/8100922/financial-sector-dimensions-colombian-pension-system http://hdl.handle.net/10986/6785
_version_	1764398533450924032
spelling	okr-10986-67852021-04-23T14:02:26Z Financial Sector Dimensions of the Colombian Pension System Rudolph, Heinz Cheikhrouhou, Hela Rocha, Roberto Thorburn, Craig ACCOUNTING AGE-EARNINGS AGE-EARNINGS PROFILES ASSET CLASS ASSET CLASSES ASSET MANAGEMENT ASSET MANAGERS AVERAGE WAGE BANKING CRISIS BANKRUPTCY BANKS BARRIER TO ENTRY BASE WAGE BASIS POINTS BENEFICIARIES BENEFIT FORMULA BOND FUNDS BOND SPREADS CAPITAL GAIN CAPITAL GAINS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL REQUIREMENTS CDS CENTRAL BANK CONTINGENT LIABILITY CONTRIBUTION CONTRIBUTION RATE CONTRIBUTION RATES CONTRIBUTIONS CORPORATE BOND CORPORATE BOND MARKET CORPORATE BONDS CORPORATE GOVERNANCE CREDIBILITY CREDIT RISK CURRENCY CURRENCY RISK DEBT FINANCING DEFICITS DERIVATIVES DISCOUNT RATE DIVERSIFIED PORTFOLIOS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC DEBT DOMESTIC EQUITY ECONOMIC DEVELOPMENT ELIGIBLE INVESTMENTS EMPLOYMENT HISTORY EQUITY FUNDS EQUITY HOLDINGS EXPENDITURES EXTERNAL DEBT FEDERAL BUDGET FINANCIAL ASSETS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL SECTOR FINANCIAL SYSTEM FISCAL BURDEN FISCAL DEFICIT FISCAL POLICY FIXED INCOME FIXED INCOME MARKET FIXED INCOME SECURITIES FOREIGN EQUITY FOREIGN EXCHANGE FOREIGN INVESTMENTS FOREIGN MARKET FOREIGN MARKETS FUND MANAGERS GOVERNMENT BONDS GOVERNMENT DEBT GOVERNMENT PAPER GUARANTEE FUND HOLDING HOLDINGS OF GOVERNMENT SECURITIES INCOME INSTRUMENTS INCOME SECURITY INCOMES INDEPENDENT FINANCIAL ADVICE INDIVIDUAL ACCOUNT INDIVIDUAL ACCOUNTS INDIVIDUAL PENSION INFLATION INFLATION RATE INFORMED DECISION INFRASTRUCTURE BOND INFRASTRUCTURE BONDS INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE INDUSTRY INSURANCE PENETRATION INSURANCE POLICY INSURANCE PREMIUM INSURANCE PREMIUMS INTEREST RATE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL PORTFOLIO INVESTMENT CORPORATION INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT PORTFOLIOS INVESTMENT REGIME INVESTMENT REGULATION INVESTMENT REGULATIONS INVESTMENT STRATEGIES INVESTMENTS IN EQUITY ISSUANCE JOINT STOCK COMPANIES LABOR FORCE LABOR MARKET LABOR MARKETS LEVY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE COMPANY LIFE INSURANCE PREMIUMS LIQUIDITY LONG-TERM ASSETS LUMP SUM LUMP SUMS MARKET CAPITALIZATION MARKET FOR GOVERNMENT SECURITIES MARKET INSTRUMENTS MARKET PARTICIPANTS MARKET SHARE MARKET SHARES MARKET STRUCTURE MATURITY MINIMUM CONTRIBUTION MINIMUM PENSION MINIMUM WAGE MINIMUM WAGES MONEY MARKET MORTGAGE MORTGAGE BONDS MORTGAGE-BACKED SECURITIES MUTUAL FUND MUTUAL FUND INDUSTRY MUTUAL FUNDS NATIONAL SAVINGS NOMINAL YIELD PENSION PENSION ASSETS PENSION FUND PENSION FUND ADMINISTRATORS PENSION FUND ASSETS PENSION FUND INVESTMENTS PENSION FUND RETURNS PENSION FUNDS PENSION REFORM PENSION SCHEME PENSION SCHEMES PENSION SYSTEM PENSION SYSTEM REFORMS PENSION SYSTEMS PENSIONERS PENSIONS PORTFOLIO PORTFOLIO ALLOCATION PORTFOLIO DIVERSIFICATION PORTFOLIO MANAGEMENT PORTFOLIO REGULATION PORTFOLIOS PORTFOLIOS OF PENSION FUNDS POVERTY ALLEVIATION PRIMARY MARKET PRIVATE EQUITY PRIVATE PENSION PRIVATE PENSION FUND PRIVATE PENSION FUNDS PUBLIC DEBT PUBLIC SECTOR DEBT RATE OF GROWTH RATE OF RETURN RATES OF RETURN REGULATORY CONSTRAINTS REGULATORY FRAMEWORK RESERVE RESERVES RETIRED RETIRED WORKERS RETIREMENT RETIREMENT AGE RETIREMENT PRODUCTS RETURNS RETURNS ON EQUITY SAFETY NET SALES SALES AGENTS SECONDARY MARKET SHARE OF GOVERNMENT SECURITIES SHAREHOLDERS SOCIAL ASSISTANCE SOCIAL SECURITY SOLVENCY SOVEREIGN RISK STOCK EXCHANGE STOCKS SUPERVISORY AGENCY TAX TAX REGIME TAX RULES TERM DEPOSITS TOTAL DEBT TREASURY TREASURY BONDS TURNOVER VALUABLE WAGE WAGE GROWTH WAGES WITHDRAWAL WORKING LIFE WORKING LIVES YIELD CURVE YIELD CURVES This paper provides an assessment of the funded pension system and the quality of the regulatory framework for both accumulation and payout phase. It suggests that the lack of portfolio diversification may contribute in the future to low returns and poor pensions and provides a number of recommendations to expand the opportunities of investments to pension funds. The paper also finds that pension fund administrators are not exploiting the scale economies in certain areas of the business such as collection of revenues and account management, and propose mechanisms to reduce costs and increase efficiency through greater competition. The paper examines the products and options offered at the retirement age, and finds a bias toward the payment of pensions in the form of lump sums and suggests alternatives for improving the availability of other instruments. Enhancements in the regulatory framework of insurance companies are also proposed. 2012-05-31T19:40:55Z 2012-05-31T19:40:55Z 2007 http://documents.worldbank.org/curated/en/2007/01/8100922/financial-sector-dimensions-colombian-pension-system 0-8213-7117-7 http://hdl.handle.net/10986/6785 English en_US World Bank Working Paper No.106 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication Latin America & Caribbean Colombia

Financial Sector Dimensions of the Colombian Pension System

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