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Recuperando la Solidaridad en el Sistema Peruano de Pensiones. Una Propuesta de Reforma
[Recovering the Principle of Solidarity in the Peruvian Pension System. A reform proposal]

Author

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  • Olivera, Javier

Abstract

We propose to create a multi-pillar system by merging the public and private pension systems. In this system, part of the worker’s contribution goes to a “solidarity fund” and the remaining is accrued in his individual capitalization account. This fund will finance a targeted minimum pension scheme. Then, the first pillar is this minimum pension, the second one is a pension financed by the own compulsory contributions to the pension fund and the third one is a pension financed by contributions to a voluntary scheme. We use unique samples of workers’ administrative data to estimate the actuarial liability, inequality on pensions and welfare. Overall, our results show that preserving the current welfare level, the actuarial liability and the inequality can be substantially reduced. Thus, the proposed multi-pillar system allows recovering the principle of solidarity and save fiscal resources.

Suggested Citation

  • Olivera, Javier, 2010. "Recuperando la Solidaridad en el Sistema Peruano de Pensiones. Una Propuesta de Reforma [Recovering the Principle of Solidarity in the Peruvian Pension System. A reform proposal]," MPRA Paper 60194, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60194
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    References listed on IDEAS

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    1. Máximo Vega-Centeno & M.A. Remenyi, 1996. "El Sistema Previsional en el Perú: Sistema Nacional de Pensiones VS. Sistema Privado de Pensiones," Revista Economía, Fondo Editorial - Pontificia Universidad Católica del Perú, issue 37-38, pages 291-404.
    2. Solange Berstein & Andrea Tokman, 2005. "Brechas de ingreso entre géneros: ¿Perpetuadas o exacerbadas en la vejez?," Working Papers 8, Superintendencia de Pensiones, revised Jul 2005.
    3. Elaine FULTZ & Silke STEINHILBER, 2004. "Social security reform and gender equality: Recent experience in central Europe," International Labour Review, International Labour Organization, vol. 143(3), pages 249-273, September.
    4. Alberto Arenas de Mesa & Jere Behrman & David Bravo, 2001. "Characteristics of and determinants of the density of contributions in a Private Social Security System," Working Papers wp077, University of Michigan, Michigan Retirement Research Center.
    5. Alberto Arenas de Mesa & Carmelo Mesa-Lago, 2006. "The Structural Pension Reform in Chile: Effects, Comparisons with Other Latin American Reforms, and Lessons," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(1), pages 149-167, Spring.
    6. Peter Diamond, 1998. "The Economics of Social Security Reform," NBER Working Papers 6719, National Bureau of Economic Research, Inc.
    7. Alberto Arenas de Mesa & David Bravo & Jere R. Behrman & Olivia S. Mitchell & Petra E. Todd, 2006. "The Chilean Pension Reform Turns 25: Lessons From the Social Protection Survey," NBER Working Papers 12401, National Bureau of Economic Research, Inc.
    8. Brown, Jeffrey R., 2001. "Private pensions, mortality risk, and the decision to annuitize," Journal of Public Economics, Elsevier, vol. 82(1), pages 29-62, October.
    9. Robert Holzmann & Richard Hinz, 2005. "Old Age Income Support in the 21st century: An International Perspective on Pension Systems and Reform," World Bank Publications - Books, The World Bank Group, number 7336, December.
    10. Titelman Kardonsky, Daniel & Uthoff, Andras, 2003. "Incertidumbre económica, seguros sociales, solidaridad y responsabilidad fiscal," Financiamiento para el Desarrollo 5116, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    13. Arenas de Mesa, Alberto & Llanes, María Claudia & Miranda Bravo, Fidel, 2006. "Protección social efectiva, calidad de la cobertura, equidad y efectos distributivos del sistema de pensiones en Chile," Financiamiento para el Desarrollo 5148, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    Cited by:

    1. Alonso, Javier & Sánchez, Rosario & Tuesta, David, 2014. "Un modelo para el sistema de pensiones en el Perú: Diagnóstico y recomendaciones," Revista Estudios Económicos, Banco Central de Reserva del Perú, issue 27, pages 81-98.
    2. Javier Olivera, 2015. "Efectos fiscales y distributivos de un sistema de pensiones multi-pilar en Perú," Working Papers 56, Peruvian Economic Association.

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    More about this item

    Keywords

    Pesions; Inequality; Peru; Social Security;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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