By World Bank

"Early retirement and lax eligibility for incapacity are undesirable for the economic climate simply because they lessen exertions productiveness and the provision of skilled employees, and they're undesirable for the process simply because they impose a heavy monetary burden that makes it nonsustainable." Costa Rica is at a turning aspect with admire to its social safeguard method. whereas part the workforce is roofed and beneficiaries have fared good some time past, the pay-as-you-go (PAYG) pension process is unsustainable for the longer term. This book describes the current pension method, its shortcomings, and defends the necessity for pressing reform. It additionally makes tips about the way to reform the method, what will be replaced first, and precisely what components of the pension method can be transformed.

Show description

Read or Download Costa Rica, a pension reform strategy PDF

Similar strategy books

The Small Army Strategy

We've entered a fierce conflict for awareness. You won't be the following Tim Ferriss, Seth Godin or Chris Brogan. the area doesn't desire extra copycats. It wishes you to be you. the one method you've bought a shot at successful this struggle for realization is to offer all yours to the few that topic. an important humans on this planet are those who appear for you.

The Worlds of Herman Kahn: The Intuitive Science of Thermonuclear War

Herman Kahn used to be the single nuclear strategist in the United States who may have made a dwelling as a standup comic. certainly, galumphing round levels around the nation, joking his approach via one ugly thermonuclear state of affairs after one other, he got here frighteningly shut. In telling the tale of Herman Kahn, whose 1960 publication On Thermonuclear battle catapulted him into famous person, Sharon Ghamari-Tabrizi captures an period that remains greatly with us--a time whose innocence, ugly nuclear humor, and outrageous yet lethal severe visions of annihilation have their echoes within the "known unknowns and unknown unknowns" that advisor policymakers in our personal embattled international.

The last warrior : Andrew Marshall and the shaping of modern American defense strategy

Andrew Marshall is a Pentagon legend. For greater than 4 a long time he has served as Director of the workplace of web evaluation, the Pentagon’s inner imagine tank, below twelve protection secretaries and 8 administrations. but Marshall has been at the leading edge of strategic pondering even longer than that.

Hostage-Taking Terrorism: Incident-Response Strategy

Examines the issues governments face or tend to face in dealing with a hostage scenario. The booklet seeks to deal with the really expert topic of trouble administration whilst utilized to hostage/siege incidents and concentrates, particularly, at the recommendations utilized in siege negotiations.

Extra resources for Costa Rica, a pension reform strategy

Example text

The total pension for the full career worker does not fall much either, because the build-up of the second pillar largely offsets the drop in replacement rate from the public pillar. Young workers lose relative to the status quo, but this is not sustainable so it is not a feasible option. They gain relative to the continuation of a PAYG system, because of the more secure pension system as well as the reduction in intergenerational transfers and future contribution rates. Major losers are workers who do not contribute for a full career, those who retire early and high earnerson grounds of equity and efficiency.

1% Assumptions: 2% economy-wide wage growth Men retire at age 62 with 18 years' future life expectancy Women retire at age 60 with 23 years' future life expectancy Source: World Bank staff estimates Low Investment Returns. Despite these financial problems, the IVM system has accumulated a pension reserve, because it is still in an immature phase with few beneficiaries relative to contributors. The higher the investment returns, the longer this reserve will last. However, the IVM reserves have been invested mainly in non-tradable government bonds, and have earned low, sometimes negative real rates of return (see Figure 6).

All rights reserved Manufactured in the United States of America First printing January 2000 World Bank Country Studies are among the many reports originally prepared for internal use as part of the continuing analysis by the Bank of the economic and related conditions of its developing member countries and of its dialogues with the governments. Some of the reports are published in this series with the least possible delay for the use of governments and the academic, business and financial, and development communities.

Download PDF sample

Rated 4.75 of 5 – based on 48 votes