IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/60194.html
   My bibliography  Save this paper

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

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/60194/1/MPRA_paper_60194.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peter Diamond, 1998. "The Economics of Social Security Reform," NBER Working Papers 6719, National Bureau of Economic Research, Inc.
    2. 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.
    3. 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.
    4. 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.
    5. Abigail Barr & Truman G. Packard, 2005. "Seeking solutions to Vulnerability in Old Age: Preferences, constraints, and alternatives for coverage under Peru’s pension system," CSAE Working Paper Series 2005-05, Centre for the Study of African Economies, University of Oxford.
    6. 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.
    7. 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.
    8. 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.
    9. 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).
    10. 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.
    11. Bertranou, Fabio M., 2001. "Pension Reform and Gender Gaps in Latin America: What are the Policy Options?," World Development, Elsevier, vol. 29(5), pages 911-923, May.
    12. Robert C. Merton, 1983. "On the Role of Social Security as a Means for Efficient Risk Sharing in an Economy Where Human Capital Is Not Tradable," NBER Chapters, in: Financial Aspects of the United States Pension System, pages 325-358, National Bureau of Economic Research, Inc.
    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).
    14. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Petra Todd & Viviana Vélez-Grajales, 2008. "How Pension Rules Affect Work and Contribution Patterns: A Behavioral Model of the Chilean Privatized Pension System," Working Papers wp193, University of Michigan, Michigan Retirement Research Center.
    2. Javier OLIVERA, 2009. "Welfare, inequality and financial consequences of a multi-pillar pension system. A reform in Peru," Working Papers of Department of Economics, Leuven ces09.11, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    3. Marcela PARADA‐CONTZEN, 2023. "Gender, family status and health characteristics: Understanding retirement inequalities in the Chilean pension model," International Labour Review, International Labour Organization, vol. 162(2), pages 271-303, June.
    4. Estelle James & Alejandra Cox Edwards & Rebeca Wong, 2012. "The Gender Impact of Pension Reform," World Bank Publications - Reports 13046, The World Bank Group.
    5. Carla Moreno, 2020. "Mandatory savings, informality and liquidity constraints," Economics Bulletin, AccessEcon, vol. 40(4), pages 3274-3295.
    6. Eduardo Fajnzylber, 2010. "Gender Policy, the Minimum Pension Age and Non-contributory Rights for Women – the Case of Chile," Working Papers wp_003, Adolfo Ibáñez University, School of Government.
    7. Alvaro Foteza & Ignacio Apella & Eduardo Fajnzylber & Carlos Grushka & Ianina Rossi & Graciela Sanromán, 2011. "Contributions to social security in Argentina, Chile and Uruguay: Densities, transitions and duration," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0, pages 127-163, January-D.
    8. Meiram Zhandildin, 2015. "Pension System Reform in Emerging Countries," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 7(1), pages 65-88, January.
    9. Landerretche, Oscar M. & Martínez, Claudia, 2013. "Voluntary savings, financial behavior, and pension finance literacy: evidence from Chile," Journal of Pension Economics and Finance, Cambridge University Press, vol. 12(3), pages 251-297, July.
    10. Javier Olivera, 2014. "The effects of a multi-pillar pension reform: The case of Peru," Working Papers 21, Peruvian Economic Association.
    11. Casey B. Mulligan & Xavier Sala-i-Martin, 1999. "Social Security in Theory and Practice (II): Efficiency Theories, Narrative Theories, and Implications for Reform," NBER Working Papers 7119, National Bureau of Economic Research, Inc.
    12. Verschoor, Arjan & D’Exelle, Ben & Perez-Viana, Borja, 2016. "Lab and life: Does risky choice behaviour observed in experiments reflect that in the real world?," Journal of Economic Behavior & Organization, Elsevier, vol. 128(C), pages 134-148.
    13. Raddatz, Claudio & Schmukler, Sergio L., 2008. "Pension Funds And Capital Market Development:How Much Bang For The Buck?," Policy Research Working Paper Series 4787, The World Bank.
    14. Estelle James & Alejandra CoxEdwards & Augusto Iglesias, 2007. "The Impact of Private Participation on Disability Costs: Evidence from Chile," Working Papers wp161, University of Michigan, Michigan Retirement Research Center.
    15. Emma Aguila & Michael D. Hurd & Susann Rohwedder, 2008. "Pension Reform in Mexico: The Evolution of Pension Fund Management Fees and their Effect on Pension Balances," Working Papers wp196, University of Michigan, Michigan Retirement Research Center.
    16. James, Estelle & Iglesias, Augusto & Cox Edwards, Alejandra, 2008. "Disability insurance with pre-funding and private participation : the Chilean model," Social Protection Discussion Papers and Notes 42268, The World Bank.
    17. Asher, Mukul G. & Vasudevan, Deepa, 2008. "Lessons for Asian Countries from Pension Reforms in Chile," PIE/CIS Discussion Paper 381, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    18. Carmen Li & Javier Olivera, 2009. "Cobertura y afiliación al sistema privado de pensiones del Perú," Capítulos de Libros PUCP / Chapters of PUCP books, in: Efraín Gonzales de Olarte & Javier M. Iguiñiz Echeverría (ed.), Desarrollo económico y bienestar. Homenaje a Máximo Vega-Centeno, edition 1, chapter 8, pages 221-239, Fondo Editorial - Pontificia Universidad Católica del Perú.
    19. David Bravo Urrutia & Olivia S. Mitchell & Petra Todd, 2007. "Learning from the Chilean Experience: The Determinants of Pension Switching," Working Papers wp266, University of Chile, Department of Economics.
    20. Martin Feldstein & Elena Ranguelova, 1998. "Individual Risk and Intergenerational Risk Sharing in an Investment-Based Social Security Program," NBER Working Papers 6839, National Bureau of Economic Research, Inc.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:60194. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.