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Welfare Reform on the Web (June 2000): Pensions - Overseas

BANK RETHINK URGED ON PENSION FUNDS

S. Fidler

Financial Times, Apr. 6th 2000, p. 10

Private pension funds in developing countries are argued to have suffered from four main problems: heavy transaction costs; volatility; regulatory problems; and a lack of insurance. Because of these the World Bank's former chief economist has called on it to rethink its promotion of private pension funds in the Third World.

HOW TO REFORM TWO PILLARS OF THE GERMAN SYSTEM

P. Koenig

Pensions International, no. 17, 2000, p. 16-17

In Germany statutory pensions are based on a pay-as-you-go system while occupational pensions are capital funded. Purposes reforms to compensate for deterioration expected in the pay-as-you-go scheme. These include simplification of the occupational pension system, portability of rights and products, higher employee contributions, and recognition of pension savings as tax-deductible.

RUSSIA'S UNIQUELY ENORMOUS AND COMPLEX PROBLEM

T. J. Healey

Pensions International, Issue 18, 2000, p. 18-19

The overall goal of pension reform is to create a transparent system linking pension benefits received at retirement to contributions individuals make during their working lives. Concludes that the best way for Russia to achieve this would be through a pension system that would allow individuals to develop their own investment accounts to supplement what they would receive from the State Pension Fund.

TOKYO PASSES BILL TO CUT BENEFITS PAID IN PENSIONS

G. Tett

Financial Times, Mar. 29th 2000, p. 12

The Japanese Parliament has passed reforms that will reduce the pension for new retirees by 5% from this year. The retirement age will also be raised in stages from 60 to 65 by 2013. The government also decided to raise the portion of the pension burden that it shoulders from one-third to one-half from 2004.

(See also Daily Telegraph, Mar. 29th 2000, p. 18)

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