Rethinking Public Pension Reform Initiatives

Author/Editor:

Peter S. Heller

Publication Date:

April 1, 1998

Electronic Access:

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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 paper argues that there are significant risks, limitations, and complications associated with reliance upon mandatory DC, fully funded schemes as the dominant public pension pillar. Policies to limit risks may result in the government being reinjected into playing an important financial role in the provision of social insurance. For many countries, the principal source of old age support should thus derive from a well-formulated, public DB pillar, with a significant amount of prefunding. A DC/FF pillar can play a useful supplemental role in a multi-pillar system for the accumulation of pension savings.

Series:

Working Paper No. 1998/061

Subject:

Aging Expenditure Income Labor National accounts Pension spending Pensions Population and demographics Public sector Social assistance spending

English

Publication Date:

April 1, 1998

ISBN/ISSN:

9781451848144/1018-5941

Stock No:

WPIEA0611998

Pages:

30

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