IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Assessing Administration Charges For The Affiliate In Individual Account Systems

Listed author(s):
  • Carlos Vidal- Meliá

    (Universitat de València)

  • José E. Devesa- Carpio

    (Universitat de València)

  • Rosa Rodríguez- Barrera

    (Universitat de València)

In any pension system based on capitalization, affiliates have to cover certain explicit costs which in a pay-as-you-go system would be implicit. In this paper we set out a model based on Whitehouse (2000) and Diamond (1999) to enable the explicit costs borne by the affiliate both during his working life and his retirement period to be assessed. It also shows the relationships between the different ways of measuring the costs that make up the total price finally paid by the contributors. Included in the model is the notable effect that some factors -such as gaps in contribution profiles, account transfers and changes in salary profiles- have on projecting the costs borne by the affiliates. Finally we carry out an international comparison of administration costs from the point of view of the affiliate, focusing special attention on the countries of Latin America and Spain. This has a double objective: 1.- To test the validity of criticisms made by some researchers as to whether the new capitalization systems introduced in Latin America are too expensive to run for the affiliates. 2.- To serve as a reference for the individual pension scheme system in Spain. En un sistema de pensiones basado en la capitalización los afiliados deben hacer frentea unos costes explícitos que en el sistema de reparto son implícitos. En este trabajo sedesarrolla un modelo, basado en Whitehouse (2000) y Diamond (1999), que permite evaluarlas comisiones explícitas que soporta el afiliado, tanto durante la vida laboral como durante laetapa de jubilación y que, además, muestra la relación entre las diferentes medidas de loscostes que integran el precio total que finalmente pagan los cotizantes. En el modelo seintroduce el efecto de algunos aspectos que tienen una repercusión muy importante en laproyección de los costes que soportan los afiliados: ¿vacíos¿ en los perfiles de aportación,efecto de los traspasos de fondos y cambio en los perfiles de salarios. Por último, se realizauna comparación internacional de los costes de administración desde la óptica de los afiliadoscon un doble objetivo:1.-Contrastar la validez de la crítica realizada por algunos investigadores a los nuevossistemas de capitalización individual implantados en América Latina, en el sentido de que sonexcesivamente caros de gestionar para los afiliados.2.-Servir de referencia para el sistema de planes de pensiones individuales en España.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
File Function: Fisrt version / Primera version, 2002
Download Restriction: no

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2002-09.

in new window

Length: 58 pages
Date of creation: May 2002
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2002-09
Contact details of provider: Postal:
C/ Guardia Civil, 22, Esc 2a, 1o, E-46020 VALENCIA

Phone: +34 96 319 00 50
Fax: +34 96 319 00 55
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ivi:wpasec:2002-09. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.