III Public Pension Plans, Their Reform, and Saving
Author: Mr. Alfredo Cuevas1, Mr. George A Mackenzie, and Mr. Philip R. Gerson
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
Language:
English
Keywords:
OP; saving rate; saving; rate; pension saving; private sector saving; voluntary saving; work history; Pensions; Pension spending; Retirement; Aging; Private savings; Eastern Europe; Baltics; Africa; PAYG plan; social security saving; PAYG scheme

Abstract

This section describes how public pension plans could be expected, on a priori grounds, to affect saving. It uses the LCH only as a starting point and acknowledges the implications of imperfect capital markets and imperfect information about the future. Three cases are presented: (1) Introduction of a PAYG plan where no plan existed previously. The literature invariably covers such cases, and the conclusions are relevant for the many countries that are contemplating a substantial expansion of an existing plan with narrow coverage. (2) Incremental reform to an established PAYG plan with universal coverage. (3) Introduction of a defined-contributions plan. Some of the main findings of this section are illustrated mathematically in Appendix I.

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Cover Pension Regimes and Saving
Pension Regimes and Saving
Author: Mr. Alfredo Cuevas, Mr. George A Mackenzie, and Mr. Philip R. Gerson
ISBN:
9781557756404
ISSN:
0251-6365
Publication Date:
10 Sep 1997
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557756404.084
Pages:
52

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