By Craig Thorburn, Roberto Rocha, Hela Cheikhrouhou, Heinz Rudolph
This paper presents an evaluation of the funded pension procedure and the standard of the regulatory framework for either accumulation and payout part. It means that the shortcoming of portfolio diversification might give a contribution sooner or later to low returns and negative pensions and offers a few strategies to extend the possibilities of investments to pension money. The paper additionally reveals that pension fund directors aren't exploiting the size economies in definite components of the enterprise reminiscent of number of sales and account administration, and proposes mechanisms to minimize charges and raise potency via larger festival. The paper examines the goods and techniques provided at retirement age and unearths a bias towards the cost of pensions within the type of lump sums and indicates choices for making improvements to the supply of alternative tools. improvements to the regulatory framework of insurance firms also are proposed.
Read or Download Financial Sector Dimensions of the Colombian Pension System (World Bank Working Papers) PDF
Similar caribbean & latin american books
'Tertiary schooling in Colombia: Paving the way in which for Reform' discusses the ways that Colombia may deal with the most concerns confronting its tertiary schooling method. the 1st part of the schooling zone paintings information the present tertiary procedure in Colombia. the second one part deals an monetary viewpoint and argues that the rustic faces major hindrances to enlargement: rationed variety of to be had locations and stifled call for in inner most greater schooling.
Eugenio Cambaceres was once the 1st to introduce the naturalist demeanour of Emile Zola to Argentinean literature within the overdue 19th century. The paintings of Cambaceres, a precursor to the modern Argentinean novel, is essential for an figuring out of the interval of consolidation of Argentina, the formation of a countrywide id, and particularly for the position of the highbrow in the course of that transition.
"A major contribution to the heritage of the Caribbean and to the comparative learn of slavery and transitions to unfastened hard work platforms" (Nigel O. Bolland, Colgate University), this booklet "shifts the focal point of curiosity from the islands' elites to the typical humans. .. with detailed connection with the black populations" (Richard Sheridan, collage of Kansas at Lawrence).
“Paul Farmer, health practitioner and relief employee, deals an inspiring insider's view of the comfort attempt. ”—Financial occasions “The book's maximum power lies in its depiction of the post-quake chaos… within the book's extra analytical sections the author's analysis of the problems of reconstruction is sharp. ” —Economist “A gripping, profoundly relocating ebook, an pressing dispatch from front by way of one among our best warriors for social justice.
Additional resources for Financial Sector Dimensions of the Colombian Pension System (World Bank Working Papers)
The mortality table is not considered to be reﬂective of current mortality levels and does not include allowance for future mortality improvement. The mortality table is a period table rather than a cohort table. Subject to the minimum salary obligation, this formula provides a minimum PW payment level in the ﬁrst year. It is open to afﬁliates with balances above that to provide the minimum salary beneﬁt to accept a ﬁgure that is at least the minimum, thus providing some form of ﬂexibility and potential deferral of income.
The stock of listed equity that is ﬂoated amounts to only 9 percent of GDP, and the market is very concentrated, with the ﬁve most important stocks accounting for 51 percent of market capitalization. There are very few private equity funds and these are very small. Pension funds already hold a signiﬁcant share of the stocks of most privately-issued instruments, particularly corporate bonds. Moreover, the ceiling on Government bonds has been binding, artiﬁcially increasing pension fund demand for corporate bonds and Figure 9.
100% 100% 100% 100% Financial Sector Dimensions of the Colombian Pension System AFP 27 28 World Bank Working Paper Table 21. 3% Source: SFC, Word Bank/IMF. Table 22. 0 Colombia 2005 data from AIOS. Source: AIOS and SFC. 6 ROEs of AFPs in Colombia are in line with those in other Latin American countries. As shown in Table 22, the AFP industry has been highly profitable in most countries, and has been able to recover its initial costs within relatively few years of operation. 14 Colombia has used caps on commissions as one of the mechanisms to reduce the fees charged on members.