New Policies for Mandatory Defined Contribution Pensions : Industrial Organization Models and Investment Products
The recent financial crisis is challenging the reform approach to mandated pension a scheme that has emerged over recent decades across the world. This reform approach is characterized by a move toward multi-pillar pension systems and includes the...
| Main Authors: | , , |
|---|---|
| Format: | Publication |
| Language: | English |
| Published: |
World Bank
2012
|
| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20100604053737 http://hdl.handle.net/10986/2462 |
| id |
okr-10986-2462 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ADMINISTRATIVE COSTS ADMINISTRATIVE FEE ADMINISTRATIVE FEES AMOUNT OF CAPITAL ANNUAL STATEMENTS ANONYMOUS REVIEWERS ASSET ALLOCATION ASSET ALLOCATIONS ASSET BASE ASSET MANAGEMENT ASSET MANAGER ASSET MANAGERS ASSET PORTFOLIO ASSET PRICES AUCTION AUCTION MECHANISMS BANKS BARRIERS TO ENTRY BEHAVIORAL ECONOMICS BEQUEST BEQUESTS BONDS BUSINESS PLAN BUSINESS SCHOOL CALCULATIONS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL REQUIREMENTS CASH BALANCES COLLATERAL COMPETITIVE MARKETS CONFLICTS OF INTEREST CONSUMER CONSUMER BEHAVIOR CONSUMER PROTECTION CONSUMERS CONTRIBUTION CONTRIBUTION RATES CONTRIBUTION SCHEMES CONTRIBUTION SYSTEMS CORPORATE GOVERNANCE CUSTOMER BASE DEFERRED ANNUITIES DEFICITS DEFINED CONTRIBUTION PENSION DEFINED CONTRIBUTION PENSIONS DEVELOPMENT BANK DISABILITY DISABILITY INSURANCE DISPOSABLE INCOME DIVERSIFICATION EARNINGS EMERGING MARKETS ENABLING ENVIRONMENT ENTRY BARRIERS EQUITIES EQUITY INVESTMENT EXPENDITURE EXPENDITURES FEE STRUCTURES FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DECISIONS FINANCIAL ECONOMIST FINANCIAL EDUCATION FINANCIAL EDUCATION PROGRAMS FINANCIAL GROUP FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL TRANSACTIONS FISCAL POLICY FIXED COSTS FRAUD FUND MANAGER FUND MANAGERS GLOBALIZATION GOVERNMENT INTERVENTION GROSS DOMESTIC PRODUCT HOLDING HOLDINGS INCOME INDIVIDUAL ACCOUNT INDIVIDUAL ACCOUNTS INDIVIDUAL SAVINGS INHERITANCE INSURANCE INSURANCE COMPANIES INSURANCE MARKETS INTERNAL RATE OF RETURN INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT CHOICE INVESTMENT CHOICES INVESTMENT CLIMATE INVESTMENT DECISION INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT PERFORMANCE INVESTMENT PRODUCTS INVESTMENT REGULATION INVESTMENT RISK INVESTMENT RISKS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTOR PROTECTION JOB CREATION LACK OF INTEREST LEVY LIABILITY LIFETIME LONG-TERM ASSET LONG-TERM INVESTMENT LOSS AVERSION LOW FINANCIAL LITERACY LOW INCOME LOW-INCOME LOW-INCOME CONSUMERS MANDATORY PENSION FUNDS MARKET CONCENTRATION MARKET DISCIPLINE MARKET INCENTIVES MARKET RISK MARKET SHARE MARKET SHARES MARKETING MARKETING EFFORTS MARKETING STRATEGIES MASS MEDIA MONETARY FUND MUTUAL FUND NET WORTH OLIGOPOLY OPTIMAL INVESTMENT ORIGINAL INVESTMENT PENSION ACCOUNT PENSION ASSET PENSION ASSETS PENSION CONTRIBUTIONS PENSION FUND PENSION FUND ADMINISTRATOR PENSION FUND ADMINISTRATORS PENSION FUNDS PENSION INCOME PENSION MARKET PENSION MARKETS PENSION PLAN PENSION PLANS PENSION POLICY PENSION PRODUCTS PENSION REFORM PENSION REFORMS PENSION SCHEMES PENSION SYSTEM PENSION SYSTEMS POLICY RESPONSES PORTFOLIO PORTFOLIO CHOICE PORTFOLIO MANAGEMENT PORTFOLIOS PRIVATE PENSION PRIVATE PENSIONS PROBABILITY PRODUCTIVITY PROVISION OF INFORMATION PRUDENTIAL REGULATION PUBLIC INFORMATION CAMPAIGNS PUBLIC PENSION PURCHASING POWER RATE OF RETURN RATES OF RETURN RATES OF RETURNS RECORD KEEPING REGULATORY BARRIER REGULATORY FRAMEWORK REMITTANCES RENTS REPLACEMENT RATES RESERVE RESERVES RESUME RETIREMENT RETIREMENT AGE RETIREMENT DATE RETIREMENT INCOME RETURNS ON EQUITY RISK DIVERSIFICATION RISK PREMIUM RISK SHARING SALARIES SALARY SALE SALES SALES AGENT SALES AGENTS SALES TACTICS SAVERS SENIOR SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SECURITY PENSION SOCIAL WELFARE START-UP COSTS SUPERANNUATION SYSTEM SUPERVISORY AGENCY TAX TAX POLICY TRUSTEE VALUABLE VALUE OF ASSETS VALUE OF PENSIONS VOLUNTARY PLANS |
| spellingShingle |
ACCOUNTING ADMINISTRATIVE COSTS ADMINISTRATIVE FEE ADMINISTRATIVE FEES AMOUNT OF CAPITAL ANNUAL STATEMENTS ANONYMOUS REVIEWERS ASSET ALLOCATION ASSET ALLOCATIONS ASSET BASE ASSET MANAGEMENT ASSET MANAGER ASSET MANAGERS ASSET PORTFOLIO ASSET PRICES AUCTION AUCTION MECHANISMS BANKS BARRIERS TO ENTRY BEHAVIORAL ECONOMICS BEQUEST BEQUESTS BONDS BUSINESS PLAN BUSINESS SCHOOL CALCULATIONS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL REQUIREMENTS CASH BALANCES COLLATERAL COMPETITIVE MARKETS CONFLICTS OF INTEREST CONSUMER CONSUMER BEHAVIOR CONSUMER PROTECTION CONSUMERS CONTRIBUTION CONTRIBUTION RATES CONTRIBUTION SCHEMES CONTRIBUTION SYSTEMS CORPORATE GOVERNANCE CUSTOMER BASE DEFERRED ANNUITIES DEFICITS DEFINED CONTRIBUTION PENSION DEFINED CONTRIBUTION PENSIONS DEVELOPMENT BANK DISABILITY DISABILITY INSURANCE DISPOSABLE INCOME DIVERSIFICATION EARNINGS EMERGING MARKETS ENABLING ENVIRONMENT ENTRY BARRIERS EQUITIES EQUITY INVESTMENT EXPENDITURE EXPENDITURES FEE STRUCTURES FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DECISIONS FINANCIAL ECONOMIST FINANCIAL EDUCATION FINANCIAL EDUCATION PROGRAMS FINANCIAL GROUP FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL TRANSACTIONS FISCAL POLICY FIXED COSTS FRAUD FUND MANAGER FUND MANAGERS GLOBALIZATION GOVERNMENT INTERVENTION GROSS DOMESTIC PRODUCT HOLDING HOLDINGS INCOME INDIVIDUAL ACCOUNT INDIVIDUAL ACCOUNTS INDIVIDUAL SAVINGS INHERITANCE INSURANCE INSURANCE COMPANIES INSURANCE MARKETS INTERNAL RATE OF RETURN INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT CHOICE INVESTMENT CHOICES INVESTMENT CLIMATE INVESTMENT DECISION INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT PERFORMANCE INVESTMENT PRODUCTS INVESTMENT REGULATION INVESTMENT RISK INVESTMENT RISKS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTOR PROTECTION JOB CREATION LACK OF INTEREST LEVY LIABILITY LIFETIME LONG-TERM ASSET LONG-TERM INVESTMENT LOSS AVERSION LOW FINANCIAL LITERACY LOW INCOME LOW-INCOME LOW-INCOME CONSUMERS MANDATORY PENSION FUNDS MARKET CONCENTRATION MARKET DISCIPLINE MARKET INCENTIVES MARKET RISK MARKET SHARE MARKET SHARES MARKETING MARKETING EFFORTS MARKETING STRATEGIES MASS MEDIA MONETARY FUND MUTUAL FUND NET WORTH OLIGOPOLY OPTIMAL INVESTMENT ORIGINAL INVESTMENT PENSION ACCOUNT PENSION ASSET PENSION ASSETS PENSION CONTRIBUTIONS PENSION FUND PENSION FUND ADMINISTRATOR PENSION FUND ADMINISTRATORS PENSION FUNDS PENSION INCOME PENSION MARKET PENSION MARKETS PENSION PLAN PENSION PLANS PENSION POLICY PENSION PRODUCTS PENSION REFORM PENSION REFORMS PENSION SCHEMES PENSION SYSTEM PENSION SYSTEMS POLICY RESPONSES PORTFOLIO PORTFOLIO CHOICE PORTFOLIO MANAGEMENT PORTFOLIOS PRIVATE PENSION PRIVATE PENSIONS PROBABILITY PRODUCTIVITY PROVISION OF INFORMATION PRUDENTIAL REGULATION PUBLIC INFORMATION CAMPAIGNS PUBLIC PENSION PURCHASING POWER RATE OF RETURN RATES OF RETURN RATES OF RETURNS RECORD KEEPING REGULATORY BARRIER REGULATORY FRAMEWORK REMITTANCES RENTS REPLACEMENT RATES RESERVE RESERVES RESUME RETIREMENT RETIREMENT AGE RETIREMENT DATE RETIREMENT INCOME RETURNS ON EQUITY RISK DIVERSIFICATION RISK PREMIUM RISK SHARING SALARIES SALARY SALE SALES SALES AGENT SALES AGENTS SALES TACTICS SAVERS SENIOR SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SECURITY PENSION SOCIAL WELFARE START-UP COSTS SUPERANNUATION SYSTEM SUPERVISORY AGENCY TAX TAX POLICY TRUSTEE VALUABLE VALUE OF ASSETS VALUE OF PENSIONS VOLUNTARY PLANS Impavido, Gregorio Lasagabaster, Esperanza Garcia-Huitron, Manuel New Policies for Mandatory Defined Contribution Pensions : Industrial Organization Models and Investment Products |
| description |
The recent financial crisis is
challenging the reform approach to mandated pension a scheme
that has emerged over recent decades across the world. This
reform approach is characterized by a move toward
multi-pillar pension systems and includes the creation or
extension of a mandatory funded pillar with defined
contribution design. The rationale and viability of such a
pillar is contingent on an enabling environment and the
delivery of high risk-adjusted net rates of return that beat
the natural benchmark, which is the internal rate of return
that an unfunded mandated scheme is able to achieve. Two key
aspects of mandated and funded defined contribution schemes
have been under discussion and investigation since dedicated
pension funds were created: (a) the high fees levied by
privately organized pension funds and the consequence for
the net rate of return; and (b) the investment products of
these funds and their capability to address the investment
risks and to deliver the expected retirement income in a
life-cycle context. To this end, country policies have
experimented with a variety of approaches to improve
outcomes with some important leads but overall modest
results. This book proposes to take a fresh and highly
innovative look at both policy issues. It suggests stepping
back and looking at the underlying causes of the issues at
stake instead of merely trying to address their symptoms. In
addressing the high fees of pension funds, it focuses on the
less-than-ideal conditions inert consumers facing firms with
market powers and proposes to apply solutions derived from
industrial organization models and pricing methods that
better reflect the cost structure of the supply of pension
services. In addressing the investment risks, it asks how to
improve fund managers' risk-adjusted investment
performance when participants are inert. |
| format |
Publications & Research :: Publication |
| author |
Impavido, Gregorio Lasagabaster, Esperanza Garcia-Huitron, Manuel |
| author_facet |
Impavido, Gregorio Lasagabaster, Esperanza Garcia-Huitron, Manuel |
| author_sort |
Impavido, Gregorio |
| title |
New Policies for Mandatory Defined
Contribution Pensions : Industrial Organization Models and
Investment Products |
| title_short |
New Policies for Mandatory Defined
Contribution Pensions : Industrial Organization Models and
Investment Products |
| title_full |
New Policies for Mandatory Defined
Contribution Pensions : Industrial Organization Models and
Investment Products |
| title_fullStr |
New Policies for Mandatory Defined
Contribution Pensions : Industrial Organization Models and
Investment Products |
| title_full_unstemmed |
New Policies for Mandatory Defined
Contribution Pensions : Industrial Organization Models and
Investment Products |
| title_sort |
new policies for mandatory defined
contribution pensions : industrial organization models and
investment products |
| publisher |
World Bank |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20100604053737 http://hdl.handle.net/10986/2462 |
| _version_ |
1764385500011954176 |
| spelling |
okr-10986-24622021-04-23T14:02:02Z New Policies for Mandatory Defined Contribution Pensions : Industrial Organization Models and Investment Products Impavido, Gregorio Lasagabaster, Esperanza Garcia-Huitron, Manuel ACCOUNTING ADMINISTRATIVE COSTS ADMINISTRATIVE FEE ADMINISTRATIVE FEES AMOUNT OF CAPITAL ANNUAL STATEMENTS ANONYMOUS REVIEWERS ASSET ALLOCATION ASSET ALLOCATIONS ASSET BASE ASSET MANAGEMENT ASSET MANAGER ASSET MANAGERS ASSET PORTFOLIO ASSET PRICES AUCTION AUCTION MECHANISMS BANKS BARRIERS TO ENTRY BEHAVIORAL ECONOMICS BEQUEST BEQUESTS BONDS BUSINESS PLAN BUSINESS SCHOOL CALCULATIONS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKETS CAPITAL REQUIREMENTS CASH BALANCES COLLATERAL COMPETITIVE MARKETS CONFLICTS OF INTEREST CONSUMER CONSUMER BEHAVIOR CONSUMER PROTECTION CONSUMERS CONTRIBUTION CONTRIBUTION RATES CONTRIBUTION SCHEMES CONTRIBUTION SYSTEMS CORPORATE GOVERNANCE CUSTOMER BASE DEFERRED ANNUITIES DEFICITS DEFINED CONTRIBUTION PENSION DEFINED CONTRIBUTION PENSIONS DEVELOPMENT BANK DISABILITY DISABILITY INSURANCE DISPOSABLE INCOME DIVERSIFICATION EARNINGS EMERGING MARKETS ENABLING ENVIRONMENT ENTRY BARRIERS EQUITIES EQUITY INVESTMENT EXPENDITURE EXPENDITURES FEE STRUCTURES FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DECISIONS FINANCIAL ECONOMIST FINANCIAL EDUCATION FINANCIAL EDUCATION PROGRAMS FINANCIAL GROUP FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKET DEVELOPMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SERVICE FINANCIAL SERVICE PROVIDERS FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL TRANSACTIONS FISCAL POLICY FIXED COSTS FRAUD FUND MANAGER FUND MANAGERS GLOBALIZATION GOVERNMENT INTERVENTION GROSS DOMESTIC PRODUCT HOLDING HOLDINGS INCOME INDIVIDUAL ACCOUNT INDIVIDUAL ACCOUNTS INDIVIDUAL SAVINGS INHERITANCE INSURANCE INSURANCE COMPANIES INSURANCE MARKETS INTERNAL RATE OF RETURN INTERNATIONAL BANK INTERNATIONAL FINANCE INVESTMENT CHOICE INVESTMENT CHOICES INVESTMENT CLIMATE INVESTMENT DECISION INVESTMENT DECISIONS INVESTMENT FUNDS INVESTMENT PERFORMANCE INVESTMENT PRODUCTS INVESTMENT REGULATION INVESTMENT RISK INVESTMENT RISKS INVESTMENT STRATEGIES INVESTMENT STRATEGY INVESTOR PROTECTION JOB CREATION LACK OF INTEREST LEVY LIABILITY LIFETIME LONG-TERM ASSET LONG-TERM INVESTMENT LOSS AVERSION LOW FINANCIAL LITERACY LOW INCOME LOW-INCOME LOW-INCOME CONSUMERS MANDATORY PENSION FUNDS MARKET CONCENTRATION MARKET DISCIPLINE MARKET INCENTIVES MARKET RISK MARKET SHARE MARKET SHARES MARKETING MARKETING EFFORTS MARKETING STRATEGIES MASS MEDIA MONETARY FUND MUTUAL FUND NET WORTH OLIGOPOLY OPTIMAL INVESTMENT ORIGINAL INVESTMENT PENSION ACCOUNT PENSION ASSET PENSION ASSETS PENSION CONTRIBUTIONS PENSION FUND PENSION FUND ADMINISTRATOR PENSION FUND ADMINISTRATORS PENSION FUNDS PENSION INCOME PENSION MARKET PENSION MARKETS PENSION PLAN PENSION PLANS PENSION POLICY PENSION PRODUCTS PENSION REFORM PENSION REFORMS PENSION SCHEMES PENSION SYSTEM PENSION SYSTEMS POLICY RESPONSES PORTFOLIO PORTFOLIO CHOICE PORTFOLIO MANAGEMENT PORTFOLIOS PRIVATE PENSION PRIVATE PENSIONS PROBABILITY PRODUCTIVITY PROVISION OF INFORMATION PRUDENTIAL REGULATION PUBLIC INFORMATION CAMPAIGNS PUBLIC PENSION PURCHASING POWER RATE OF RETURN RATES OF RETURN RATES OF RETURNS RECORD KEEPING REGULATORY BARRIER REGULATORY FRAMEWORK REMITTANCES RENTS REPLACEMENT RATES RESERVE RESERVES RESUME RETIREMENT RETIREMENT AGE RETIREMENT DATE RETIREMENT INCOME RETURNS ON EQUITY RISK DIVERSIFICATION RISK PREMIUM RISK SHARING SALARIES SALARY SALE SALES SALES AGENT SALES AGENTS SALES TACTICS SAVERS SENIOR SOCIAL PROTECTION SOCIAL SECURITY SOCIAL SECURITY PENSION SOCIAL WELFARE START-UP COSTS SUPERANNUATION SYSTEM SUPERVISORY AGENCY TAX TAX POLICY TRUSTEE VALUABLE VALUE OF ASSETS VALUE OF PENSIONS VOLUNTARY PLANS The recent financial crisis is challenging the reform approach to mandated pension a scheme that has emerged over recent decades across the world. This reform approach is characterized by a move toward multi-pillar pension systems and includes the creation or extension of a mandatory funded pillar with defined contribution design. The rationale and viability of such a pillar is contingent on an enabling environment and the delivery of high risk-adjusted net rates of return that beat the natural benchmark, which is the internal rate of return that an unfunded mandated scheme is able to achieve. Two key aspects of mandated and funded defined contribution schemes have been under discussion and investigation since dedicated pension funds were created: (a) the high fees levied by privately organized pension funds and the consequence for the net rate of return; and (b) the investment products of these funds and their capability to address the investment risks and to deliver the expected retirement income in a life-cycle context. To this end, country policies have experimented with a variety of approaches to improve outcomes with some important leads but overall modest results. This book proposes to take a fresh and highly innovative look at both policy issues. It suggests stepping back and looking at the underlying causes of the issues at stake instead of merely trying to address their symptoms. In addressing the high fees of pension funds, it focuses on the less-than-ideal conditions inert consumers facing firms with market powers and proposes to apply solutions derived from industrial organization models and pricing methods that better reflect the cost structure of the supply of pension services. In addressing the investment risks, it asks how to improve fund managers' risk-adjusted investment performance when participants are inert. 2012-03-19T09:34:12Z 2012-03-19T09:34:12Z 2010 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000334955_20100604053737 978-0-8213-8276-9 http://hdl.handle.net/10986/2462 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank Publications & Research :: Publication Publications & Research :: Publication |