Social Security and Individual Savings Accounts Emmanuel Reynaud, ILO Round Table on Pension Reforms

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Social Security and Individual Savings Accounts
Emmanuel Reynaud, ILO Round Table on Pension
Reforms

• Geneva, 9 and 10 October 2003

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General background

• Controversial debate on pensions in 1990s
• 3 pillars, individual accounts and ageing crisis
• Potential of IA on theoretical grounds
• Practical experiences in LA and CEE
• The approach of the ILO

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The ILO approach

• Policy objectives comes first
• Choice among instruments is second
• ILS and decent work agenda
• General discussion on social security
• Tripartite consensus

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Social security for all

• ILO vision on social security
• Highest priority to extension of coverage
• Global campaign on social security and coverage
  for all
• Great variety of schemes to achieve objective
• Each society to choose within framework of basic
  principles

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Basic principles

• Priority role of the State in facilitation,
  promotion and extension of coverage
• Benefits secure and non-discriminatory
• Sound and transparent management of schemes
• Low administrative costs
• Strong role for social partners
• Gender equality

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Principles and guidelines for pensions1.
Population ageing

• Pay-as-you-go and advanced funded schemes both
  affected
• Solutions through measures to increase employment
  rates
• To achieve high levels of sustainable economic
  growth

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Principles and guidelines for pensions2. Mix of
schemes

• Statutory schemes to guarantee adequate benefit
  levels and ensure national solidarity
• Supplementary schemes
• An addition not a substitute
• An important role for social partners
• State to provide regulation and supervision
• Tax incentives for low- and medium-incomes
• IA should not weaken solidarity systems

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Principles and guidelines for pensions3.
Long-term financial viability

• To conduct regular actuarial projections
• To implement timely necessary adjustments
• A need for social dialogue
• on actuarial assumptions
• on policy options to address financial imbalance

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Individual savings accountsLessons from country
experiences

• From theoretical assumptions to actual
  experiences
• Four key points
• Coverage
• Governance, cost-efficiency and regulation
• Economic and fiscal impact
• Social adequacy, gender equality and poverty
  reduction