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FIAP > Boletín – Recientes > Progress of the Pension Systems N° 2 2023 / July 2023
17 August, 2023

Progress of the Pension Systems N° 2 2023 / July 2023

In this edition of the report, we highlight the following news:

  • Crises in public PAYGO systems and/or state-managed systems. The government of Costa Rica owes the Costa Rican Social Security Fund (CCSS) ¢102.808 million (USD 189 million) for invoices corresponding to the payment of government contribution to the pensions of the Disability, Old Age and Death (IVM). In the United States, A survey conducted for Newsweek shows that 60% of people are “very worried” that Social Security pension amounts (PAYGO) may be reduced before they retire. In Ecuador, The Commission entrusted with reforming the pension system of the Ecuadorian Social Security Institute (IESS) will present key proposals for reducing the system’s current deficit, namely: (i) gradually increase the number of years of contributions for accessing a pension (ii) adjust the minimum age and the number of years of contributions required for retirement, and (iii) modify the pension calculation table. Furthermore, in Paraguay, The Social Security Institute (IPS) supports the reform of the pension system to contain the multimillion-dollar deficit of the PAYGO system.
  • Chile: A survey by Universidad San Sebastián shows that 80% of people want to be able to choose their fund manager. Also, the Cadem Public Survey shows that 51% believe that the additional 6% contribution should be fully assigned to workers’ individual accounts.
  • Kenia: The government introduced new rules governing contributions in the National Social Security Fund (NSSF), the country’s individual accounts program, after an appeal court deemed them to be legal. The new rules specifically increase employer and employee contributions, increase the maximum covered income, and introduce new contribution levels.
  • Netherlands: The Senate passed the Future of Pensions Law, which requires the Defined Benefit (DB) plans in the country’s quasi-mandatory occupational pension system to switch to Defined Contribution (DC) plans by January 1, 2028.

Relevant reports:

  • Pinbox published the book Pensions for all: proposals for inclusive pension in Latin America. Some of the topics covered by the book are: (i) Pensions for all: Innovating Pensions in Latin America and (ii) How to design a pension system that addresses the labor informality challenge? among others.
  • The United Kingdom’s Department for Work & Pensions published statistics revealing the gap between the median private pension amounts of men and women.
  • The OECD published the document Joining forces for gender equality: What is holding us back?, which analyses the advances and policies in favor of gender equality, such as the incorporation of the gender perspective and the drawing up of budgets and reforms for increasing participation in parental leave and childcare, among others.




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