Fiscal Effects of the 1993 Colombian Pension Reform

Author/Editor:

Sergio Clavijo

Publication Date:

November 1, 1998

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This study examines the fiscal impact of the pension reform adopted in Colombia in 1993, which established a fully funded, privately administered pension system alongside the existing pay-as-you-go state scheme. The reform increased the contribution rate and reduced the benefits of the state scheme. However, the fiscal cost of the reform was high, estimated at 1.5 to 2.3 percent of GDP annually over the next three decades. This reflects concessions made to special groups of public servants, the delay in making effective the new retirement conditions, and the minimum pension guarantee. A new generation of pension reforms needs to be adopted.

Series:

Working Paper No. 1998/158

Subject:

Aging Economic sectors Expenditure Labor Pension reform Pension spending Pensions Population and demographics Public sector

English

Publication Date:

November 1, 1998

ISBN/ISSN:

9781451857559/1018-5941

Stock No:

WPIEA1581998

Pages:

23

Please address any questions about this title to publications@imf.org