Juan Yermo

• Organisation for Economic Co-operation and Development (OECD)

Este artículo aborda las distintas opciones de políticas que pueden aplicarse para promover los planes de previsión complementarios y evalúa su validez basándose en la experiencia de países que las han implementado. De esta manera se percibe la obligatoriedad como la política más efectiva para asegurarse un alto grado de cobertura, unas aportacione...

Most countries have separate pension plans for public‐sector employees. The future fiscal burden of these plans can be substantial as the government usually is the largest employer, pension promises in the public sector tend to be relatively generous, and future payments have to be paid out directly from government revenues (pay‐as‐you‐go) or by fu...

Resumen La mayor parte de los países tienen planes de pensiones separados para los empleados del sector público. La carga fiscal futura de estos planes puede ser importante, ya que el gobierno es, por lo general, el mayor empleador, los compromisos de pensiones en el sector público tienden a ser relativamente generosos y los pagos futuros proceden,...

Résumé La plupart des pays disposent de plans de pension distincts pour les employés du secteur public. La charge financière qu'ils représenteront à l'avenir risque de se révéler très lourde car l'Etat est généralement le principal employeur, les promesses de pension du secteur public sont généralement relativement généreuses et les versements sero...

Auszug Die meisten Länder haben für die Angestellten des öffentlichen Sektors separate Rentenpläne. Die zukünftige Belastung des Staatshaushalts durch diese Rentenpläne kann beträchtlich sein, da der Staat gewöhnlich der größte Arbeitgeber ist, die Rentenversprechen im öffentlichen Sektor tendenziell relativ großzügig sind und zukünftige Zahlungen...

The present report focuses on the pre-campaign planning, the design, the delivery, and the monitoring and evaluation of National Pension Communication Campaigns in a range of OECD and non-OECD countries. The research identifies barriers to effective communications and highlights models of good practice in order to help organisers design campaigns t...

To adapt pension systems to demographic trends, many countries are reducing pay-as-you-go public pension levels and lifting retirement ages. In this context, funded pensions could play a major role to avoid adequacy gaps. Yet, as this paper shows, the coverage of funded private pensions, as measured by enrolment rates, is highly uneven across count...

A period of protracted low interest rates is a feasible, even if not the most likely, scenario going forward and such a scenario would adversely affect pension funds and insurance companies. Protracted low interest rates affect investment opportunities and have a potentially significant adverse effect on life insurance companies and institutions wh...

Institutional investors in OECD countries held over USD 65 trillion in assets at the end of 2009, and they are growing fast in emerging economies where Sovereign Wealth Funds still predominate as source of long-term capital. Concerns about short-termism and corporate governance have led to calls for more “responsible” and longer-term investment, es...

Most countries have separate pension plan for public sector employees. The future fiscal burden of these plans can be substantial as the government usually is the largest employer, pension promises in the public sector tend to be relatively generous, and future payments have to be paid out directly from government revenues (pay-as-you-go) or by fun...

Este trabajo describe la creciente necesidad que los Gobiernos encuentran para reformar los sistemas de pensiones, especialmente a raiz de la reciente crisis financiera y el rapido envejecimiento de la poblacion. El estudio identifica dos tipos principales de las reformas estructurales, la que vincula automaticamente los parametros del sistema publ...

This paper examines the role of guarantees in DC pension plans, in particular minimum investment return guarantees during the accumulation phase. The main goal is to assess the cost and benefits of different return guarantees. The report uses a stochastic financial market model where guarantee claims are calculated as a financial derivative in a fi...

This paper suggests avenues for strengthening the governance and management of the Japanese Government Pension Investment Fund (GPIF), the largest single pool of pension assets in the world. The GPIF earned its name in 2006 as part of a major governance reform that aimed at increasing the transparency and autonomy of the fund. While much improved,...

This paper assesses the relative performance of different investment strategies for different structures of the payout phase. In particular, it looks at whether the specific glide-path of life-cycle investment strategies and the introduction of dynamic features in the design of default investment strategies affect significantly retirement income ou...

This article addresses the question of improving the financial sustainability of and access to pensions and health care in ageing societies. It focuses on the opportunities presented by ageing societies and identifies 11 strategic options (actions and programs) that offer the most promise for multi-stakeholder collaboration, often combining pension...

Resumen La reciente crisis financiera ha tenido una repercusión sin precedentes en los fondos de pensiones y de la seguridad social. Estos últimos han registrado importantes pérdidas no realizadas en sus inversiones y se han impugnado sus mecanismos de administración, lo que ha puesto en peligro su solidez financiera y cuestionado su capacidad de p...

Auszug Reservefonds der sozialen Sicherheit und Pensionskassen wurden in beispielloser Art von der jüngsten Finanzkrise getroffen. Sie verzeichneten massive nicht realisierte Anlageverluste. Ihre Governance‐Mechanismen wurden infrage gestellt, was ihre finanzielle Solidität und ihre Fähigkeit zur Bereitstellung angemessener Leistungen gefährdete. D...

Social security and pension funds were affected on an unparalleled scale by the recent financial crisis. They reported massive unrealized investment losses and their governance mechanisms have been challenged, therefore endangering their financial soundness and questioning their capacity to deliver adequate benefits. The year 2009 ended with financ...

Résumé Les fonds des régimes de sécurité sociale et les fonds de pension ont été touchés de plein fouet par la récente crise financière qui fut d'une brutalité sans précédent. Ils ont subi des moins‐values latentes considérables et leurs mécanismes de gouvernance ont été remis en cause au risque de compromettre leur stabilité financière et de remet...

Three essential goals of pension plan funding are the long-term viability, stability and security of member benefits. Reform of funding regulations for defined benefit (DB) pension schemes to make them more counter-cyclical in nature can help achieve these goals as well as make DB schemes more attractive to plan sponsors that are increasingly movin...

This article analyzes the tradeoffs between uncertainties in contributions and benefits embedded in different pension arrangements. The two key criteria for evaluating the risk-sharing characteristics of a private pension plan from the perspective of the plan member are the funding ratio (ratio of assets to liabilities) and the replacement rate (ra...

The principal purpose of this article is to analyse the trade-off between the (un)certainty in contributions on the one hand and benefits on the other that is embedded in different pension arrangements. The article employs the funding ratio (ratio of assets to liabilities) and the replacement rate (ratio of benefits to salaries) as key criteria for...

Reassembling Social Security: A Survey of Pensions and Health Care Reforms in Latin America. Mesa-LagoCarmelo. Oxford University Press, 2008, ISBN 978-0-19-923377-9, 480 pages. - Volume 8 Issue 3 - Juan Yermo

This paper discusses why the development of pension systems is important for the African region. It also looks at the current pension arrangements in selected African countries. The paper was designed as an overview/background document to provide context and assist discussion at the OECD/IOPS Global Forum on Private Pensions, which was held in Momb...

The principal purpose of this paper is to analyse the trade-off between the uncertainty in contributions on the one hand and benefits on the other that is embedded in different pension arrangements. The paper employs the funding ratio (ratio of assets to liabilities) and the replacement rate (ratio of benefits to salaries) as key criteria for evalu...

This paper assesses the impact of different quantitative approaches to regulate investment risk on the retirement income stemming from defined contribution (DC) pension plans. It looks at how such regulations affect the spectrum of investment policies available and, through this channel, how they affect the retirement income that an individual may...

Good governance is increasingly recognized as an important aspect of an efficient private pension system, enhancing investment performance and benefit security. Yet, despite regulatory and industry initiatives, governance weaknesses persist across OECD and non-OECD countries. This paper highlights the main governance challenges faced by policymaker...

Sovereign Wealth Funds (SWFs) are pools of assets owned and managed directly or indirectly by governments to achieve national objectives. These funds have raised concerns about: i) financial stability; ii) corporate governance and iii) political interference and protectionism. At the same time governments have formed other large pools of capital to...

This paper provides a description of the risk-sharing features of pension plan design in selected OECD and non-OECD countries and how they correspond with the funding rules applied to pension funds. In addition to leading to a better understanding of differences in funding rules across countries with developed pension fund systems, the study consid...

This paper focuses on the fees that are charged to participants in mandatory, defined contribution pension systems, focusing on the experience of Latin America, Central and Eastern Europe, Australia, and Sweden. In order to compare fees across countries, this paper looks at the evolution of a simple cost measure, the ratio of annual fees to assets...

Since mid-nineties, India’s foreign exchange reserves (FER) – both nominal and real adjusted for price level – started growing considerably and reached a new peak of US$ 251985 million in 2008-09. The fact that such unprecedented accumulation of FER build-up has materialized despite India's balance of payment on its current account being mostly neg...

Many countries around the world are partly prefunding their otherwise pay-as-you-go (PAYG) financed social security systems by establishing or further developing existing public pension reserve funds (PPRFs). Most OECD countries have put in place internal and external governance mechanisms and investment controls to ensure the sound management of t...

Collective pension funds (CPFs) – occupational pension funds that cover the employees of more than one employer (enterprise) – have been operating in OECD countries for decades. Generally speaking, there are two models, i.e. closed pension funds, with membership restricted to a particular industry or group of industries, and open pension funds, ope...

This paper assesses current regulatory and accounting developments in the OECD area against their purported goals. It specifically considers the different approaches to valuing pension liabilities and questions the possibility of convergence between funding and business accountants' valuation standards for pension liabilities. It concludes that the...

In individual account pension systems, members bear the risks and consequences of their investment decisions. If participants behave as predicted by economic theory, such responsibility would be welfare-enhancing as members would invest and hold a portfolio of financial assets with a risk-return combination consistent with their investment horizon,...

This paper provides a stylised assessment of the impact of investmentrelevant pension fund regulations and accounting rules on contribution and investment strategies within the context of an asset-liability model (ALM) specifically designed for this purpose. The regulations and accounting rules considered represent, in a simplified way, the situati...

This paper provides a stylised assessment of the impact of investment-relevant pension fund regulations and accounting rules on contribution and investment strategies within the context of an asset-liability model (ALM) specifically designed for this purpose. The analysis identifies a substantial impact of regulations which, in a simplified way, re...

Collective pension funds (CPFs) - occupational pension funds that cover the employees of more than one employer (enterprise) - have been operating in OECD countries for decades. Generally speaking, there are two models, i.e. closed pension funds, with membership restricted to a particular industry or group of industries, and open pension funds open...

Private pension arrangements are being promoted around the world to play a more central role in retirement income provision. One key policy concern of this trend is how risks inherent to funded arrangements will be addressed. Regulatory efforts are most successful when tackling informational asymmetries and other operational problems that hinder ma...

In the past decade, many Latin American governments have radically restructured their old age income security systems, following the lead of Chile, which undertook its major pension reform in 1981. The defining characteristic of the reforms has been a shift in the basis of public pensions from social to individual responsibility: instead of the wid...

A number of countries have introduced individual, privately managed defined-contribution accounts, where the value of the pension benefit will depend on accumulated contributions and investment returns. These schemes expose workers’ future pension benefits to a number of different risks. To try to mitigate these risks, reforming governments have of...

The paper assesses the impact of regulatory regimes on the market performance of private pension funds in Latin American countries that have undertaken reforms of their pension systems. It focuses in particular on the effects of "draconian" regulation, a set of rules on the industry's structure, investment regime, and performance. The conclusi...

This work describes the growing need that governments face to reform their pension systems into more financially sustainable structures, especially in light of the recent financial crisis and the rapidly ageing population. The study identi!ies two main types of structural reforms: those that automatically link the public pension system’s paramete...

Obra en que se ofrece información sobre los sistemas de pensiones complementarios y privados que se ofrecen en diversos países del mundo: las políticas públicas y las leyes que los sustentan, los cambios que han sufrido, las evaluaciones y supervisiones a que están sujetos, cuotas, coberturas, beneficios, métodos de financiamiento, entre otros dato...

Thesis (M. Phil.)--University of Oxford, 1997. Includes bibliographical references (leaves 78-88).