Reforming the Pension Reforms : The Recent Initiatives and Actions on Pensions in Argentina and Chile

This paper describes the recent reforms of pension policies adopted by Argentina and Chile. The structural reforms in the 1980s and 90s were targeted on improving the long term fiscal sustainability of the system and their institutional design, while transferring part of the economic and social risks from the State to participants. However, in recent year s authorities in both countries coincided on identifying insufficient coverage among the elderly and adequacy of benefits as the most critical problems. As a result of differences in political economy and institutional constraints, responses were different. In Chile, a long and participatory process resulted in a large reform that focuses on impacts on the medium term, through a carefully calibrated adjustment. In Argentina, instead, reforms were adopted through a large number of successive normative corrections, with little public debate about their implications, and immediate impacts on coverage and fiscal demands.

Bibliographic Details

Main Authors:	Fajnzylber, Eduardo, Rofman, Rafael, Herrera, German
Language:	English en_US
Published:	World Bank, Washington, DC 2008-05
Subjects:	401K PLANS, ANNUITIES, ANNUITY, ANNUITY PROVIDERS, AVERAGE BENEFIT, AVERAGE BENEFITS, BASIC PENSION, BENEFICIARIES, BENEFIT LEVEL, BENEFIT LEVELS, BIDDING PROCESS, BOND, BOND OBLIGATIONS, BONDS, CAPITAL MARKETS, CENTRAL BANK, COMPENSATION, COMPETITIVE BIDDING, CONFLICTS OF INTEREST, CONTRIBUTION PAYMENT, CONTRIBUTION RATE, CONTRIBUTION RATES, CONTRIBUTION RECORDS, COURT, CUSTOMER SERVICE, DEBT, DEBTS, DEFICITS, DEFINED BENEFIT, DEFINED BENEFITS, DEFINED CONTRIBUTION SYSTEMS, DEMOCRACY, DEMOGRAPHIC, DEPENDENCY RATIO, DEPOSIT, DEPOSITS, DEVALUATION, DISABILITY, DIVORCE, EARLY RETIREMENT, EARLY RETIREMENT PROGRAM, ECONOMIC CONDITIONS, ECONOMIC DEVELOPMENT, ECONOMIC PERFORMANCE, ELDERLY, EQUITY ISSUES, EXCHANGE RATE, EXPENDITURE, EXPENDITURES, FAMILIES, FINANCE MINISTRIES, FINANCIAL DEVELOPMENT, FINANCIAL FLOWS, FINANCIAL INSTITUTIONS, FINANCIAL INSTRUMENTS, FINANCIAL PRODUCTS, FINANCIAL RISKS, FISCAL DEFICITS, FISCAL POLICY, FOREIGN INVESTMENT, FORMAL PENSION, FORMAL PENSION SYSTEM, FUND MANAGERS, FUNDED SCHEME, FUNDED SCHEMES, FUTURE INCOME, GENDER, GENDER EQUALITY, GENDER EQUITY, GENDER INEQUALITY, HEADS OF HOUSEHOLDS, HEALTH SYSTEM, INCOME INEQUALITY, INCOME SECURITY, INCOME TAX, INCOME TAXES, INDIVIDUAL ACCOUNT, INDIVIDUAL ACCOUNTS, INDIVIDUAL BENEFITS, INFLATION, INFORMAL SECTORS, INFRASTRUCTURE PROJECTS, INNOVATIONS, INSTITUTIONAL CONSTRAINTS, INSTRUMENT, INSURANCE, INSURANCE COMPANIES, INSURANCE COMPANY, INSURANCE PREMIUM, INTEREST INCOME, INVESTMENT POLICIES, INVESTMENT PORTFOLIOS, INVESTMENT REGIME, INVESTMENT REGIMES, JUDGE, JURISDICTIONS, LABOR FORCE, LABOR FORCE PARTICIPATION, LABOR MARKET, LABOR MARKETS, LAWS, LEGAL FRAMEWORK, LEGAL SYSTEM, LEGISLATION, LIFE EXPECTANCY, LIFE INSURANCE, LOCAL CAPITAL MARKETS, MARKET CAPITALIZATION, MARKET PERFORMANCE, MINIMUM BENEFIT, MINIMUM BENEFITS, MINIMUM WAGE, MINIMUM WAGES, MOTIVATION, MUTUAL FUNDS, NATIONAL PENSION, NATIONAL SAVINGS, OCCUPATIONAL SCHEMES, OUTSOURCING, PENSION, PENSION BENEFIT, PENSION BENEFITS, PENSION COST, PENSION COVERAGE, PENSION EARNINGS, PENSION EDUCATION, PENSION ENTITLEMENTS, PENSION EXPENDITURES, PENSION FUND, PENSION FUND ADMINISTRATORS, PENSION FUND ASSETS, PENSION FUND INVESTMENT, PENSION FUND MANAGERS, PENSION FUNDS, PENSION POLICIES, PENSION POLICY, PENSION REFORM, PENSION REFORMS, PENSION SAVINGS, PENSION SAVINGS PLAN, PENSION SCHEME, PENSION SCHEMES, PENSION SPENDING, PENSION SYSTEM, PENSION SYSTEMS, PENSIONERS, PENSIONS, POLITICAL ECONOMY, POLITICAL PROCESS, PRICE COMPETITION, PRIVATE MANAGEMENT, PUBLIC PENSIONS, PUBLIC SYSTEM, PURCHASING POWER, RAPID GROWTH, RATE OF RETURN, REGULATORY FRAMEWORK, REPLACEMENT RATE, REPLACEMENT RATES, RESERVE, RESERVES, RESIDENCE, RETIREES, RETIREMENT, RETIREMENT AGE, RETIREMENT BENEFITS, RETIREMENT INCOME, RETIRING WORKERS, RETURN, RETURNS, RISK MEASUREMENT, SAFETY, SAFETY NET, SAVINGS ACCOUNTS, SAVINGS SCHEMES, SCHEDULED WITHDRAWALS, SELF EMPLOYED, SELF EMPLOYED WORKERS, SERVANTS, SOCIAL DEVELOPMENT, SOCIAL POLICY, SOCIAL PROTECTION, SOCIAL RISKS, SOCIAL SAFETY NET, SOCIAL SECURITY, SOCIAL SECURITY AGENCY, SOCIAL SECURITY SYSTEM, STATE GUARANTEE, SURVIVORS INSURANCE, TAX, TAX EXEMPTIONS, TAX INCENTIVES, TAX RATES, TRANSFER OF FUNDS, TRANSPARENCY, UNEMPLOYED, UNEMPLOYMENT, VICTIMS, VOLUNTARY PENSION, WAGES, WIDOW, WILL, WITHDRAWAL, WOMAN, YOUNG WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2008/05/20170223/reforming-pension-reforms-recent-initiatives-actions-pensions-argentina-chile https://hdl.handle.net/10986/20200
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