Peru : Restoring the Multiple Pillars of Old Age Income Security

World Bank

Washington, DC

关键词: INCOME SECURITY;    OLD AGE BENEFITS;    POVERTY INCIDENCE;    OLD AGE INSURANCE;    PENSION SYSTEMS;   

RP-ID  :  27618

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

In this report, the components of anational retirement security system are categorized - as"pillars", or as "tiers" according totheir objective. This is in marked contrast to otherpublications that categorize the branches of a pensionsystem in accordance with who administers them (the publicor private sector); how are benefits structured(final-salary defined benefit formula, or definedcontributions); or, their financing mechanism(pay-as-you-go, or full funding). Thus, the term "firstpillar" or "pillar one" refers to that partof a pension system intended to keep elderly out of poverty;"second pillar" or "pillar two" to thatpart intended to help individuals smooth consumption overtheir life-cycle, i.e., to prevent a dramatic fall in incomeat retirement time; and, "third pillar" or"pillar three" to the instruments, andinstitutions available on a voluntary basis for workers toincrease their income in old age. This report intends toexplore, and present policy options to extend formalprotection against old age poverty risks, at a fiscallysustainable cost, and aims as well at restoring the multiplepillars of formal old age income security. The reportreviews the current pillars of Peru's retirementsecurity system, grown weak, and by and large, has failed todiversify the risks to old-age income. The public branch ofthe "second pillar" still threatens theGovernment's fiscal stance, and constrains managementof the economy. The private branch is costly, risky andadministered by a private oligopoly. The "thirdpillar" of voluntary savings, and insurance instrumentsis weak, costly, lacks transparency and fails to complementbenefits from the mandatory pillars. The report takes acomprehensive approach in its analysis of Peru'sretirement security institutions, and, is divided into fivesections. Following this introduction, Section II presentsthe dimensions of Peru's vulnerability to poverty inold age, by examining the nature of the risks to income fromageing in Peru. The section continues with a look at howwell Government administered and/or mandated pension plansare covering these risks. Section III provides theinstitutional background, reviews reforms to formal socialsecurity institutions in the 1990's, and the progressachieved, and, examines the serious problems remaining.Section lV presents an analysis of proposals for reforms toeach branch of the retirement security system, while SectionV concludes by presenting policy options - some straightforward measures, while others, deeper, more controversialreforms - consistent with meeting the stated objective ofextending protection against poverty in old age, in afiscally, sustainable manner.