Advance Funding of Pensions
International Reform Monitor, Special Issue / October 2000
1. Auflage 2000, 56 Seiten
The current reports from the „International Reform Monitor“ project clearly demonstrate that industrialised countries are reforming their retirement systems in response to demographic trends.
An ever-increasing number of countries are introducing advancefunded elements to strengthen the financial security of their entire pension system. These advance funding reforms address the rising costs of pension provision, which are likely to occur with population ageing. Both the OECD and World Bank have voiced strong support for pension funding, while the ILO and ISSA have been more critical of such schemes.
This special issue, Advance Funding of Pension, examines fundamental questions of pension financing. What degree of advance funding is desirable? Should contributions be mandatory? Should there be an obligation to annuitise pension savings? An overview of the current pension systems in 15 OECD countries is supplemented with the opinions of country experts on what would be the optimal level and design of pension funding in their countries. On many fundamental issues, there emerged a broad consensus among the experts surveyed.
Moreover, this special issue describes pension reform plans that have recently been implemented to increase advance funding in the various pillars of the retirement system. Although considerable reform activity has occured in all countries, the experts agree that the legal framework could still be improved.
The reform proposals discussed here highlight many valueable approaches, which may be of particular interests to those countries planning further advance funding reforms. To obtain more detailled information, this issue contains a comprehensive list of references. Internet links to the 15 countries' relevant institutions are provided, as well as several background articles.
A detailed description of the reforms discussed here, as well as further information on pension research is available on the Internet under www.reformmonitor.org.
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