English, Article, Journal or magazine article edition: Swiss Chilanpore : the way forward for pension reform? Vittas, Dimitri

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/116762
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Swiss Chilanpore : the way forward for pension reform?
Author
  • Vittas, Dimitri
Physical Description
  • preprint
Notes
  • Many countries are considering far-reaching pension reform. This is happening in response to growing demographic pressures in some countries (especially in Western and Eastern Europe), to unsustainably generous benefits in others (especially in Latin America), or to failure to ensure the profitable investment of accumulated funds (as seems to be true with national provident funds in African countries). Given the worldwide interest in reform, one could ask: Is there a blueprint for pension reform? Can lessons learned in different countries be combined in a best-practice structure usable in different countries'pension systems? The author reviews the experience of Switzerland, Chile and Singapore, countries with relatively successful economies and pension systems. He suggests a multipillar pension system - which he dubs Swiss Chilanpore - that would blend the hard-headed softness of the Swiss, the expensive yields of the Chilean scheme, and the ruthless efficiency of Singapore. He emphasizes that: there is no perfect pension system - all systems suffer from the problems of moral hazard, adverse selection agency costs, and free riders; and all well-functioning pension systems require good government and good management. All pension systems have to cope with the problems of long-term uncertainty. For these reasons, the author favors a multipillar approach that diversifies across different providers. Swiss Chilanpore would have two compulsory and two voluntary pillars: a first pillar (drawn from the Swiss model) consisting of two parts, a flat-rate pension proportional to the length of a person's career and an earnings-related pension based on annual actualized lifetime earnings; a second pillar consisting of a central agency, which could be public or private, for record-keeping and other centralized functions, and private fund management companies for investing funds, the point being to keep operating costs down and achieve high investment returns; and third and fourth pillars based on occupational pension schemes and personal savings. The proposed structure would aim to combine the strengths and avoid the weaknesses of the three countries'systems, but the author cautions that no reform proposal would apply equally well in all countries, regardless of local circumstances and conditions.
  • Environmental Economics&​Policies,Economic Theory&​Research,Banks&​Banking Reform,Information Technology,Pensions&​Retirement Systems
  • RePEc:wbk:wbrwps:1093
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment