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Pension Reforms in Mauritius: Fair and Fast—Balancing Social Protection and Fiscal Sustainability
Author:
Mauricio Soto
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Mr. Vimal V Thakoor
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Mr. Martin Petri
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Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 126
Language:
English
Publication Date:
19 Jun 2015
DOI:
https://doi.org/10.5089/9781513568331.001
ISBN:
9781513568331
ISSN:
1018-5941
Pages:
24
Keywords:
WP; BRP expenditure; present discounted value; NPF contribution; BRP benefit; BRP spending; Mauritius; ageing; pensions; pension reform; fiscal policy; investment strategy; BRP beneficiary; CSDB pension expenditure; Pension spending; Aging; Retirement; Civil service
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2015: Issue 126