FIAP’s President, Guillermo Arthur, traveled to Ukraine to participate as a speaker in the KIEV INTERNATIONAL ECONOMIC FORUM 2016, which was held on October 6 and 7, 2016.

He participated in the panel “Pension funds as an important source of economic growth.” On the occasion, he highlighted the contributions of the individually funded programs to improving pensions and the economic development of countries. He especially emphasized the case of Chile, as an example of the pension reforms required in Ukraine for meeting the challenges of population aging and ensuring sustainable pensions.

Among the most relevant conclusions, he emphasized that in order to improve the contribution of the pension funds to the improvement of pensions, economic development, corporate governance and financial stability, it is necessary to:

1. Maintain high levels of returns and adequate diversification of investments (alternative investments).

2. Encourage mandatory and voluntary contributions that enable increasing contribution densities, thereby improving replacement rates.

3. Introduce automatic adjustments of the relevant parameters (e.g., contribution rate, retirement age).

4. Respect the fiduciary role of the fund managers.

5. Improve formality in the labor market.

6. Monitor the behavior of the public PAYGO systems that are still operating.

To view the presentation, please download it here