Pension Reforms in Mauritius : Fair and Fast—Balancing Social Protection and Fiscal Sustainability

Author/Editor:

Mauricio Soto ; Vimal Thakoor ; Martin Petri

Publication Date:

June 19, 2015

Electronic Access:

Free Full Text. 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:

Despite important past reforms, the ageing population of Mauritius threatens the sustainability of its pension system. This paper examines how pension spending might increase without reforms and discusses reforms options. The findings suggest that unifying the retirement age and indexing it to life expectancy would contribute most significantly to secure and sustainable pensions. The poverty reducing objective of the universal pension can be improved by better targeting. The old age protection objective of the National Pension Fund could be strengthened by increasing contribution and replacement rates. Implementing changes faster should result in less drastic future changes and fairer outcomes.

Series:

Working Paper No. 15/126

Subject:

English

Publication Date:

June 19, 2015

ISBN/ISSN:

9781513568331/1018-5941

Stock No:

WPIEA2015126

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

24

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