By Carolin A. Crabbe
The social safety equation is worsening world wide with the elderly inhabitants transforming into swifter than the hard work strength. within the final twenty years of the 20th century, the Latin American and the Caribbean zone used to be confronted with what appeared insurmountable problems during this regard. Social safeguard expenditures had grown with the inflation and upward alterations of wages and frequent tax evasion. inside this framework, a number of international locations within the area undertook a profound overhaul in their social safeguard structures, changing them totally or partly with a privately controlled and invested method. those far-reaching reforms have replaced the way in which social protection is seen and, in this case, policymakers all over the world are the event of the quarter. 1 / 4 Century of Pension Reform in Latin the US and the Caribbean presents an research of those reforms, what labored good, what didn't, what are the teachings realized and what are the subsequent steps.
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Extra resources for A Quarter Century of Pension Reform in Latin America and the Caribbean: Lessons Learned and Next Steps
Parametric Reforms Structural reforms fundamentally transform the public system, replacing it in whole or part with a private one. Nonstructural or parametric reforms attempt to provide long-term ﬁnancial strengthening to a public 44 Copyright © by the Inter-American Development Bank. All rights reserved. org/pub A Quarter Century of Pension Reform in Latin America and the Caribbean system by increasing the retirement age and/or contributions, or by tightening the calculation formula (for more on reform policies, see Madrid 2003; Mesa-Lago and Müller 2004).
Asociación Internacional de Organismos de Supervisión de Fondos de Pensiones (AIOS). 2004. 12 (December). Buenos Aires, Argentina. Bronton, P. D. and P. Masci. 2005. Workable Pension Systems: Reform in the English-speaking Caribbean. : Inter-American Development Bank. Bustamante Jeraldo, Julio. 2004. El sistema de pensiones en Chile. C. Collins, Joseph and John Lear. 1995. Chile’s Free-Market Miracle: A Second Look. : Institute for Food and Development Policy. Domeniconi, Hector, Julia Domeniconi, Bruno Domeniconi, Andrea Perrotto and Hugo Bertin.
Since many workers are retirement savings. However, they have come under scrutiny because not reported as part of the payroll, this many corporations, including car single tax is more effective in insuring manufacturers, airlines, oil comthat the employer contribution is made panies, and technology ﬁrms, have under-funded or terminated their for all employees (IDB 1998). Chile has plans. The costs to the government also begun to introduce a preferential have been signiﬁcant; it must make up some of the beneﬁts through the tax treatment of retirement savings, but Pension Beneﬁt Guarantee Corporanot for the private pension funds (Gill, tion, which insures the participant’s Packard, and Yermo 2005).