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FIAP > Boletín – Otras Publicaciones > “Non-contributory pension systems in Latin America and the Caribbean: towards solidarity with sustainability”- ECLAC – June 2024
23 August, 2024

“Non-contributory pension systems in Latin America and the Caribbean: towards solidarity with sustainability”- ECLAC – June 2024

The book addresses the need to strengthen non-contributory pension systems in Latin America and the Caribbean, but emphasizing that these do not generate distortions or disincentives in contributory systems. The publication emphasizes that the expansion of non-contributory pension systems in the region constitutes one of the main milestones in the construction of social protection architectures in a context marked by high labor informality, accelerated aging, and wide gaps and inequalities, including those of gender. The book points out that it is key that non-contributory pension systems are created in countries where they do not yet exist and that they are strengthened and expanded in those where their coverage or levels of sufficiency are still limited, taking into account elements such as their target population, the constituent elements of their institutionality and design, and their financial sustainability. The report also notes that it is essential to calibrate the design of non-contributory systems so that they do not create distortions or disincentives in contributory systems and, on the contrary, can be articulated synergistically with them, promoting the expansion of contributory coverage, which is essential to guarantee the sustainability of the pension system. Non-contributory pension systems have a universal orientation to guarantee the rights of older persons, but they must do so by complementing, and not replacing, contributory pension systems.

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