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Pension Issues around the World

-Archives 2007-

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Africa 

Kenya: State to Stop Free Pension Plans for all Civil Servants (December 13, 2007)
The Kenyan government adopted a new contributory pension scheme: Kenyan civil servants will have to pay for their own pensions beginning in the next financial year. The permanent secretary in the finance ministry, Joseph Kinnyuas, announced that state employees will have to participate in the fund. Rural civil servants fear this new scheme as they have only little knowledge of private investments.  Will the new program help or harm government retirees in Kenya?

South Africa: Pension Funds Time Bomb (November 18, 2007)
The recent Fidentia scandal has prompted the South African government to introduce measures to curb mismanagement in fund pensions. Pension fund expert Henry Dul says that about R75-billion in annual pension contributions by 9.2 million members is effectively placed in the hands of a few thousand people who lack expertise and training in this area.. According to Dul, South Africa’s 13,000 pension funds are managed by ‘busy or ignorant’ people who are jeopardizing the income of current and future retired South Africans.

Kenya: Kenya’s Civil Service Pension Needs Review (August 6, 2007)
Policymakers in Kenya are not sufficiently noting the problems in funding civil servants’ pensions. At present, civil servants participate in the Civil Service Pension Scheme established under the Pensions Act of the Laws of Kenya with guaranteed pension increases. It is a non-contributory defined benefit scheme. In 2006 the government tried to introduce individual contributions from the civil employees but then deferred the decision. The author argues that the government is currently facing difficulties paying pensions and that it should return to the consideration of employees’ contributing.

South Africa : Legislation to Create Single Public Service (July 30, 2007)
President Thabo Mbeki announced the creation of a single public service that would “spur economic growth toward Human development.” A program - whose name suits quite well - will help the government in this task: it’s the “Batho Pele (People First) programme”. The goal is to speed up the public services, and to improve the linkage between the authorities and the population. Tools to reach those objectives are nothing more than boosting the capacity of the post offices. However this new system won’t be created “at one go.” For example the Government Employees Pension Fund is very complex and still needs to be unified to integrate workers at the local and national level.

Kenya: Retirement Woes Mount as Workers Live Longer (June 26, 2007)
An extended life expectancy in Kenya creates a severe problem for the pension management industry. Official figures estimate that because of the AIDS pandemic someone born in Kenya is likely to die at age 49, but actuaries predict that many seniors will live up to age 78 by 2050 as a result of rising standards of living. Surveys by the Retirement Benefits Authority (RBA) found that many Kenyans will outlive their life savings. The Treasury is worried about a pension crisis because the pension bill will grow to Sh24 billion in this new fiscal year and rise at 15% annually.

Botswana: Pensions for All? Ideas on Extending Pension Provision to the Low Paid-Part 1 (May 8, 2007)
In Botswana, despite the fact that an increasing number of firms have established pension funds for their employees, pensions are still not a right for everybody. In the private sector, employers often do not cover less skilled and lower paid employees. This situation has produced a social problem--poverty in Botswana is particularly concentrated among older persons. This article reports on some issues raised by a five-yearly payout scheme—in short, recipients did not save the money. It also gives a glimpse into the system of a proper pension contribution and underlines problems with excessive administration costs.

Cote d’Ivoire: CNPS, 80 Percent of Retirees Receive their Pension Through Bank Transfers (April 23, 2007)
(Article in French)
The director of the CNPS (National fund for social provision) gives a positive picture of the pension fund’s activities. Thanks to changes adopted since 1999, the national fund can distribute 80 percent of pensions through a bank transfer. Officials now make monthly payments, instead of quarterly, preventing long lines of Ivorian elderly waiting to get their pensions. However, as the CNPS director points out, the objective is now to increase pension benefits. They represent 35-45 percent of the average income, much less than the 70 percent of the most prosperous Western countries. 

Cameroon: A Bird in Hand (April 4, 2007)
This article refers to the seminar organized last week by the Ministry of the Public Service in Cameroon. For once, the government talked about the situation of pensioners in the country, whether they are civil servants or working for the private sector. Indeed, the country has no efficient retirement policy and very few Cameroonians can claim to be retirees. Older workers face huge difficulties when they want to receive their pension benefits: among other examples, the administration can ask them for a “certificate of stoppage of duty,” a “certificate to attest that they are still alive,” or their most recent pay slip.

Cameroon: Retirement, Differently (February 20, 2007)
(Article in French)
Most African countries do not have a national pension system: the population is bound to save as much money as they can during their working life. Older workers are often not able to retire for lack of any sizeable pension. The Breweries of Cameroon prepare their employees to leave beginning at age 50. Meanwhile, the company proposes that they be trained in basic management and ways to look for financing. Besides providing pensions, this Brewery of Cameroon initiative helps to find new investors, which the country greatly needs.

South Africa: Social Security and Retirement Reform (February 2007)
In his State of the Nation Address on February 9, 2007, President Thabo Mbeki announced the need for social security reform based on a National Treasury paper. South Africa has already a “well-established occupational and individual retirement funding industry that provides protection to many, and a substantial social assistance grant program that provides income support to the poor.” But South Africa has no provision for social insurance.  Mbeki’s government plans on creating a mandatory, contributory and earnings-related system which will hopefully realize the government’s commitment to a caring, poverty-free society.

Africa: What Is the Best Way to Save Retirees from Misery? (January 16, 2007)
Like other parts of the world, African countries must organize their pension systems. Because of HIV/AIDS and the death of the breadwinners’ generation, older people are now looking after their grandchildren and have consumed whatever savings they had. The author identifies the Canadian experiences that could be implemented in Africa: either the Canadian Pension Plan (CPP) or the Registered Retirement Savings Plan (RSSP). One is a mandatory pension fund in which every worker over the age of 18 must contribute, as well as the employers. The other is a tax-free account in which the “individuals contribute, manage, and administrate their retirement finances as they see fit.”

Kenya: Kenyan Retirees Doomed to Poverty as Pensions Eat Up 25pc of GDP (January 8, 2007)
Some 1,352 pension schemes operate currently in Kenya. It is a reason why the country cannot pay a secure and reliable source of retirement income. A World Bank report has pointed out many of the problems facing the National Social Security Fund. It doesn’t compel high wage workers to make sufficiently high enough monthly contributions. The Fund has large administrative costs reducing the benefits that the NSSF can pay. The World Bank recommends that the country should create a fully-funded pension scheme where both employers and employees would contribute and in which benefits would be clearly defined. Alas, the article’s writer dismisses the notion of a social pension on the basis of age.

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Americas & Caribbean

Reports | Articles

Reports

Peru: Intergenerational Transfers and Demographic Transition in Peru: Remittances, Old-Age pensions, and Future Challenges (October 2007)
Family solidarity remains a traditional value in Peru. Families live together in the same house and share incomes to help children and the vulnerable elderly. But, this model faces changes due to the demographic transition and the effects of increasing migration of the young. 

Peru: Peru Starts Allowing Movement from Private to State Pensions (August 28, 2007)
After long debate among different political parties, Peru’s government finally announced that it will allow the transfer of funds from private pension funds to the state pension system. The administration of the previous president did not favor the bill, claiming it would be costly for the state. However, the current president favors the bill as he promised the pension holders back in 2006 to allow them to change plans. "I think that of the hundreds of thousands of retirees, at least 200,000 will be able to change pensions over the course of time," said the President of the nation's office of Superintendent of Banking, Insurance and Private Pensions.

Jamaica: Building a Viable Pension Sector for Jamaica (August 5, 2007)
Jamaica, a country with a population of 2.7 million, confronts the challenge of an increasing senior population. The author says that the State pension system is weak. Private pension funds, in existence since the 1940s, cover around 70, 000 private-sector workers in a 1 million total workforce. In 1966, a National Insurance Scheme (NIS) went into effect ensuring basic pension benefits to Jamaicans. Despite that scheme, only one third of older persons meet the qualifying criteria to receive the NIS pensions. The article examines some hurdles that the government must address in to secure income support for its older persons—increased longevity, informal workforce, the self-employed, regulated fund management, discipline to avoid early withdrawals, and inadequate payouts.

Chile: Report: Social Security: The Chilean Approach to Retirement (May 17, 2007)
Aging population, rising longevity, and relatively low fertility rates pose long-range financial challenges to the U.S. Social Security system. Arguing for reform, US policy-makers often refer to the example of Chile, which initiated sweeping retirement reforms in 1981 that replaced a state-run, pay-as-you-go defined benefit retirement system with a private, mandatory system of individual retirement accounts where benefits are dependent on the account balance. This Congressional Research Service report points out that while the Chilean reform has contributed to the rapid growth in the economy over the past two decades and returns on pension fund investments have been greater than expected, the administrative costs have been high and participation rates have been modest at best. There is concern that the system does not cover the entire labor force and provides inadequate benefits to low income workers.

Latin America: Pension Systems in Latin America: Concepts and Measurements of Coverage (November 2006)
Evaluators of pension systems often look at three dimensions: The first involves the extent of coverage, that is, the proportion of protected older persons. The second one focuses on adequacy or how well do the benefits meet the consumption level or needs of pensioners. Finally, the third spotlights the sustainability of the system. This report on Latin America focuses on coverage and offers helpful informational to understand pen in both the public and private sectors.

Articles

Bolivia: Bolivians Pass Dignity Pension (November 28, 2007)
On November 28, the Bolivian government adopted the Universal Old Age Law providing pensions for the elderly. Bolivian Congress Speaker Alvaro Garcia publicly announced the approval of the measure that provides 200 Bolivian pesos (about 25 dollars) per month for people over 60 years of age. After many protests and marches in support of the law, Bolivians cheered news about its adoption.

Mexico: An Embargo Will be Placed on People Owing Money to Pensions (October 25, 2007)
(Article in Spanish)
This embargo will put a tough burden on the backs of workers due to the fact that there is a debt of 15 million pesos to the pension fund. The State assured that all pensioners will receive the pensions despite of the debt. Measures are underway to prevent such a debt of this size to accumulate again. 

Argentina: The Argentinean President Forces Pension Funds to Be Used in Argentina (October 19, 2007)
(Article in Spanish)
The Argentine President is forcing the administrators of elder and other pensioners’ funds to reduce their foreign investments from 10 to 2 percent. Right now most of the funds are invested in Brazil, estimated at 2.515,7 million dollars. The president believes the new policy will boost the local Argentine economy. 

Bolivia: A New System of Pensions Might Substitute the Old “Bonosol”( October 14, 2007)
(Article in Spanish)
The Executive Branch will present a project to the National Congress to benefit people older than 60 years old. The beneficiaries could receive 200 Bolivarianos monthly (US$26.65). The program, if enacted, would replace the “Bonosol.” 

Colombia: $543.198 Million for the 2008 Budget of the Meta Region Waiting for Assembly's Approval (October 8, 2007)
(Article in Spanish)
The pensioners’ fund in the region of “Meta” is scheduled to receive 12,500 million pesos (6,119,951 US Dollars) depending on the decision of the Assembly on November 15, 2007. This decision will also mean that 34,986 million pesos would be allocated to the health sector. 

Paraguay: Pensioners from the Interior Will Claim (their pensions) at ATM Machines Starting this Month (October 3, 2007)
(Article in Spanish)
Beginning in October 2007, pensioners in Paraguay will be able to retrieve their pensions through the “Infonet” network of ATM machines. The improved accessibility of pensions will help people, especially those living in remote areas of the country. 

Argentina: It’s the Time to Receive for Grandparents (September 27, 2007)
(Article in Spanish)
All elderly people from Buenos Aires province will finally receive a pension as of September 28, 2007. This change will start with those who already receive social pensions and will continue forward to benefit all elderly people.

Peru: ITF Waived for Food Pension Payments (September 22, 2007) 
(Article in Spanish)
The Executive Branch in Peru waived the “Financial Transaction Tax” (ITF) for food pension payments deposited into savings accounts. Those institutions depositing the payments had to also sign a sworn statement affirming that food pension funds only would be deposited in such accounts.

Ecuador: Beneficiaries of Farmer’s Insurance Give Last Ultimatum to IESS (September 12, 2007) 
(Article in Spanish)
Representatives and beneficiaries of the Farmer’s Insurance are demanding key reforms to the EISS (Ecuadorian Institute of Social Security). Most important, they want a pension increase from $3 to $21. Also, they want the EISS to pay off the debt incurred for pensioners’ medical insurance. Beneficiaries of the Farmer’s Insurance have mobilized before and are threatening to do the same again if their demands are not met.

Bolivia: Miners Armed with Dynamite Accuse Perez of Lying to Them (September 11, 2007) 
(Article in Spanish)
Retired miners in Bolivia are still entrenched in a hunger strike and threatening to blow themselves up with dynamite at the office of the Vice-ministry of Pensions. They accuse the Minister of Pensions, Perez, of lying to retired miners saying that he went back on his promise to increase pensions from $60 dollars a month to $180 dollars a month. The minister now says that giving a pension increase to retired miners would “put in risk the economy of the country” and set off an inflationary spiral. The retired miners say that they are not terrorists but rather they are citizens and forced to take extreme measures to claim what has been promised them in old age.

Paraguay: No Studies of Grace Pensions in the Parliament (September 6, 2007) 
(Article in Spanish)
The Paraguay Budget Commission archived seventy-five pension petitions because they were considered out of date. The cases will be submitted to another court where they are most likely to be cancelled, some for lacking documentation. Who suffers?

Chile: Pensioners Protest at “La Moneda” (August 28, 2007) 
(Article in Spanish) 
Directors from the “Federación Gremial de Asociaciones de Jubilados y Montepiadas” (Gremial Federation of Retirees Associations) and other retirees traveled from Valparaiso to Santiago to protest decreases in pensions. The retiree association denounced government deductions that discriminate against women who get a 40 to 50% reduction in their pensions when their husbands die. Retirees are want a readjustment of 10.6% on retroactive payments and the obligatory extension of their healthcare.

Argentina: “Increase in the Budget for Pension Payments” (August 27, 2007)
(Article in Spanish) 
The population of retired and pensioned Argentineans increased by 12.5% this year. Argentinean officials decided to increase the budget for pension payments by 44.8%. People over 75 years and anyone who can prove that they or anyone in their family has a critical illness will receive these pensions. The budget increased from 560 million pesos (177 million US dollars) to 811 million pesos (256 million dollars).

Colombia: There Are Three Million Poor Elderly Living in Colombia, and Only 2 out of 10 Who Are Sixty or Older Have Pensions (August 22, 2007)
(Article in Spanish)
There are three million elderly poor living in Colombia, and only two out of ten aged sixty or older have pensions. Although upper-class senior citizens may have some form of social security, like the poor, they also consider themselves a burden to their family and are often lonely as a result. The director of the Ministry of Economic Security and Pensions, Diane Arenas, states that a national political movement on aging and old age needs to be encouraged in order to remedy these problems. 

Bolivia: “FFAA Improves Retirement Plan Though Salary Contributions of 2% (August 3, 2007)
(Article in Spanish) 
Any military official or sub official retiring next year will receive an additional pay per year as part of a military social security reform. Officials who retire after 35 years of service will receive this benefit. The reform is part of the broader restructuring of Cossmil (Military Social Security Corporation), which will also create new modern hospitals. This reform also allowed for the identification of excessive bureaucracy, unqualified personnel, low salaries, and for the new structural organization of Cossmil. 

Canada: Younger Generation Getting Retirement Message (July 23, 2007)
A survey by Decima Research shows that the younger generation of Canadians is much better prepared for retirement saving than their predecessors. The findings show that 70% of Canadians between the ages of 25 and 34 have started their savings plan. "It is encouraging to hear that younger Canadians are getting serious about retirement planning," says Mary Chan, Principal, Mutual Fund Marketing and Managed Account Program. The surveys conducted in US and UK show almost identical results.

Canada: Addressing the Aging Workforce Issue (June 18, 2007)
The Montreal Economic Institute suggests that an aging population risks lowering economic growth and wealth creation in Quebec. The Province is known for the lowest labor force participation among older persons in North America. In response, the institute suggests postponing normal retirement age to 67 and encouraging the participation of older persons in the job market. Moreover, it recommends increasing the pension plan payments by 0.7 % monthly rather than by the current 0.5 % for retirements after age of 65. This implies a reduction of payments for the retirees before the age of 65 by a similar percentage.

Canada: Research Reveals Few Employers Taking Action to Retain Older Workers (June 8, 2007)
Manpower Canada’s survey involving more than 1,300 Canadian employers found that 67% of the Canadian employers have no strategies to recruit older workers or to retain them in the workforce. Conversely, a global survey conducted in 25 countries found that employers in Japan and Singapore are more advanced in retaining older employees. In 19 of the surveyed countries, retention strategies were more common than recruiting strategies. Considering the OECD findings claiming that between 2025-2030, 12 million people a year will leave the workforce, industry must adopt measures to assure long term productivity.

Argentina: Elderly Persons Can Choose Their Retirement Plan (April 9, 2007)
(Article in Spanish)
Starting on April 9 and for the next 180 days, retirees have the option to choose to have a pension from a private company or a State pension. The Argentine government says that although each system has different rules and procedures, the main difference is not State versus private operation. This article explains the differences. If you are eligible for an Argentine pension, please click here to read a guideline about deciding which retirement system is best for you. 

Argentina: New Workers Will Contribute 11% to Pension Fund (April 4, 2007)
(Article in Spanish)
All Argentine workers who start on or after May 28, 2007, will be required to contribute 11% of their salary for their retirement fund, unlike current workers who contribute 7% of their salary towards retirement. This policy will reduce a potential financial crisis of funding pensions of current workers as they retire.

Argentina: Supreme Court Must Define Retirement Income (April 2, 2007)
(Article in Spanish)
The Argentine Supreme Court must resolve the issue of the value of the retirement benefit. While an existing law requires a 13%-increase on retirees’ pension, it does not dictate when the increase must take effect. The Government said it will increase the pension by 13% for all of the retirees and pensioners. The defense team, however, argues that the system has no automatic mechanism to ensure that the retirement income remains proportional to the cost of living. The defense team argues that it should not be up to the Executive Branch to decide when it is time to increase the benefits.

Argentina: Now People who under-contributed can receive a pension. (April 1, 2007)
(Article in Spanish)
The Government created a new system to reach people who didn’t pay sufficiently into the social insurance system over 30 working years. Nowadays, people who are 70 years old, and have at least 10 years of contributions, can retire. But also the people who paid less than 10 years of contributions into the system can retire as well. In the case of the latter, the government deducts a portion of the pension payment to be used as a “delayed” contribution toward completing their obligation. A lot of unemployed and others who worked “off the books” in the informal sector will have a chance to receive a pension payment in old age.

Peru: Peru Passes Controversial Law on Free Disaffiliation of the AFP (March 28, 2007)
(Article in Spanish)
Alan García Pérez, the president of Peru, promulgated a controversial law to permit Peruvians to return to the national pension system (SNP) if they think it will benefit them more than their private pension. The government will send out details of the SNP to all workers within 90 days so they can decide which pension system would be better for them.

Argentina: Half of the Households Depend on State Income (March 28, 2007)
(Article in Spanish)
A private study reveals how the government’s income distribution is disproportional. Among the poorest 20% of the population, 1 out of every 20 households receive pensions. Among the richest 20% of the population, however, 1 out of every 3 households receives the state compensation. Because more than half of the population depends on this kind of pension to survive on a daily basis, the poor will remain poor, which means a large number of elderly persons will suffer.

Mexico: Mexico's Lower House Passes State Pension Reform Bill Amid Protests (March 22, 2007)
The Mexican Senate may resist approving the lower house’s vote to change the state workers’ pension system, if the Senators pay attention to their state workers. This pension bill would compel government workers to switch from the current defined-benefits pay-as-you-go system to individual accounts with defined-contributions. Many state workers, along with legislators from the Democratic Revolution Party, demonstrated against this privatization plan. Investors, on the other hand, welcomed the possible chance to make money on public pensions.

Canada: Workers Allowed to Semi-Retire and Still Contribute to Pension (March 20, 2007)
The Harper government intends to help seniors achieve semi-retirement, at the same time helping Canadian companies that need to keep their experienced workers. This will be accomplished through a new decision allowing “employers to pay a partial pension to an employee while that same worker is also contributing to the pension plan.” Another measure will complement it: the working age limit will be raised to 71. Those changes will encourage seniors to work longer, and thus pay more taxes.

Argentina: Pension Contribution Will Increase in 2008 (March 5, 2007)
(Article in Spanish)
The Argentine government plans to change its pension contribution and collection systems. First, employees will have to contribute 11% of their salaries towards the pension instead of contributing the usual 7% of their salaries. Second, employees will have a choice of which retirement plan works best for them.

Chile: Is It Possible to a Receive Pension from Abroad? (March 5, 2007)
(Article in Spanish)
Many Chileans live abroad and wonder if they can receive their Chilean pensions in their host countries. Unfortunately, with very, very few exceptions, it is not possible for expatriate Chileans to receive a pension even if they have met the requirements to be eligible for pension. However, if they return to Chile, they can apply for a pension.

Chile: The Post Office Lost My Check (February 27, 2007)
(Article in Spanish)
All pensioners receive their pension check by mail. However, some checks never arrive for pensioners because the postal service is unreliable. An elderly woman went to the pension office (ING) and she was not able to recover the pension that was lost in the mail unless she writes to the ING and request them to send another check. She asked to have her check put into a direct deposit account to avoid the risk of losing yet another pension check in the mail. Sadly, the ING told her that it was not possible.

Canada: Court Set To Rule on Massive Gay Class Action Suit (February 27, 2007)
Canadian courts have denied gay and lesbians the right to collect pensions that their partners paid during their working years up to the year 2000 when the government passed legislation allowing same-sex surviving partners to collect partners' pensions. However, this legislation is effective only if the same-sex partners had died after January 1998. This law provoked more than 1,000 gay men and lesbians whose same-sex partners died in the period between April 17, 1985 and January 1, 1998 to file a class action suit. George Hislop, a longtime activist who initiated the lawsuit, accused the government of discrimination by not setting the cut-off point at 1985, the year Canada extended legal rights to equality to gay and lesbian people.

Chile: No Benefits for Not Having Pension (February 25, 2007)
(Article in Spanish)
The Chilean pension system failed this older woman and affected many other aspects of her life. Francisca Boetto Vargas tells a Catch-22 story about her elderly grandmother. The 73-year-old woman went to a public transportation office to obtain a half-fare smartcard. After being forced to go to four different places because no one knew how to assist her, officials told her that she had to show her pension stub to receive the half-fare smartcard. Unfortunately, the grandmother does not receive any kind of pension or financial support from the government. Therefore she is denied the half-fare smartcard and had to pay the full fare.

Colombia: University of Antioch Retirees Do Not Want to Leave (February 22, 2007)
(Article in Spanish)
Older persons in Colombia found that neither demonstrations nor human rights claims could defend their right to choose where they want to go for healthcare. The Minister of Social Protection decided to deny pensioners who retired from the University of Antioche the right to continue receiving healthcare from there where they pay a small amount for healthcare. These pensioners are required to look elsewhere for healthcare services, that will cost more for services that are less adequate than those from the University.

Chile: In Order to Retire, It Is Necessary to Pay Intermediation Commissions
(February 16, 2007)
(Article in Spanish)
In Chile, selecting a retirement plan that is perfect for you can be both daunting and confusing. However, it is necessary to pay intermediation commissions, that cost up to 2.5% of the premium or the pension balance of the individual. The Superintendent of the AFP, Solange Berstein, explained that it is important to keep certain things in mind when selecting the ideal retirement plan. Some items include the intermediation cost, the reference commission and insurance agents. This article explains these and other issues and how such commissions may impact each retirement plan option.

Chile: Reform Brings Drastic Flexibility to Receive Pension Earlier (February 14, 2007)
(Article in Spanish)
A new reform and the creation of the common basic pension will open a window of three years so that Chileans can retire early. This radically lowers the present savings requirements for pension eligibility. This law is expected to be in effect in the year 2008 and during the first year of the law, pensioners will be required to have savings of at least $60,000, which is less than half of the present requirement of $132,000. This article explains the legal reasons behind this drastic reform and how it will impact workers and pensioners.

Mexico: Bulletin Number 0598: Closing of the Meeting on the Update in Social Security (January 2007)
(Article in Spanish)
This report sums up the social security meeting at the Mexican House of Representatives. The president of the commission, Miguel Navarro Ángel Quintero, said that changes must be made to the social security system by increasing the amount of pensions and extending what they cover, following the European models. He argues that the increase would promote economic growth. However, the president of the Federal Commission of Competition, Eduardo Perez Motta, stated that it would cost more in Latin America than it does in England and Sweden. Perez Motta made some recommendations on how to promote retirement savings, which are detailed in the report. The Secretary General of the National Union of Workers of the Social Insurance, Valdemar Gutiérrez Fragoso, pointed out that it is the government’s responsibility to protect the Mexicans’ pension and health rights.

Dominican Republic: Police Pensioners Blocked J. F. Kennedy Avenue in Response to Delayed Pension Payment (January 30, 2007)
(Article in Spanish)
In Santo Domingo, police pensioners blocked the J. F. Kennedy Avenue, an important street, for not receiving their pension. They protested that the government is spending their pension money on the construction of a new metro system. Burning tires, trunks, and even a human umbilical cord, marked this chaotic street scene.

Argentina: Argentina Gives a Strong Turn with Pension System (January 25, 2007)
(Article in Spanish)
Following the Chilean model, Argentina privatized its pension system in the mid-1990s. People were able to choose between a private pension system and a state pension system. However, if they chose to be part of a private pension, they could not go back to the state pension system. This year Argentina decided to experiment with some reforms to their pension system: Argentina will allow people to switch back to the state pension system in 180 days. From then on, the government will give people that choice every five years.

Chile: The Retirement Fund Administration and Social Security: Chile’s Reform Project 2006-2007 (January 16-17, 2007)
(Article in Spanish)
This report contains an array of information regarding pensions in Chile. It explores the importance of an established pension system, why the Chilean privatized pension system needs to be changed and how. Mr. Uthoff used statistics to back up his data and he uses different graphs and statistics to show how the pension system could be reformed.

Mexico: The Fight for Oaxaca is my Legislative Terrain: Gabino (January 22, 2007)
(Article in Spanish)
Politician Cué Monteagudo assures Oaxacans that his legislative priorities are those concerning education, social justice, social security, respect of human rights, protection of natural resources, refunding national institutions, and regaining Mexico ’s integrity  in  international political matters. Monteagudo plans to lead initiatives to pass a State law  that guarantees pension support for older adults.  This is the starting point in his campaign that attempts to work toward peace, justice, and the development of Oaxaca and Mexico.

Colombia: The ABC of the Social Security Situation (January 18, 2007)
(Article in Spanish)
The Colombian government assured they will respect the workers’ right to social security. Workers were concerned because the Colombian government was making reforms that would affect social security and healthcare. The government assured that those who are on pension will continue to receive pension and that under the new system, current workers will have a pension as well. This article explains the ABCs of the social security situation, who this will impact and in what ways.

Canada: Canada’s Pension Predicament (January 2007)
This report from the Canadian Federation of Independent Business emphasizes the widening gap between public and private sector retirement pension plans. While the private sector has been moving toward defined contribution plans, the public sector has stayed with defined benefit plans that are generally considered more generous for employees. This report studies specific points that it suggests need change: early retirement, incentives to retire, pension coverage, employed-sponsored pension plans. However, as it states, “the overall objective of any policy reform would be to level the playing field between the treatment of retirement savings for public and private sector individuals,” so as to avoid subsidizing retirement lifestyles. Or do the “reformers” want to encourage a race to the bottom? 

Canada: Canadian Workers Most Worried about Permanence of Pension Plans (January 22, 2007)
The “AXA Retirement Scope” report surveyed active workers and retirees in 16 countries. It appears that Canadians worry about the future of their government pension plans. Although Canadian retirees have a high standard of living, especially thanks to an efficient health care system, they fear not having invested enough in savings. Among the already retired, some felt that their quality of life has diminished.

Dominican Republic: Pension Rejected by the Last Management (January 4, 2007)
(Article in Spanish)
Senator Reinaldo Wall Perez, who is President of the Senate in the Dominican Republic, opposed the Congress’ approved privileged pension, a package given to all members of Congress upon retirement. Senator Wall Perez insisted that the Government must analyze each case carefully because there are Congressional members who do not merit the privileged pension package.

Dominican Republic: Pensioned Teachers Live with Many Calamities (January 4, 2007)
(Article in Spanish)
Teachers who have spent their entire working career in the educational system retire with an income that is equivalent to between US$67 and US$200 a month. Most receive pensions closer to US$67. However, a Dominican cannot live a healthy life on that amount.

Chile: Pension Alternatives (January 3, 2007)
(Article in Spanish)
Ideally, someone works for 30 to 35 years and then upon retirement, receives a stable and comfortable pension. But government pensions, particularly in poor countries, are not always reliable, so it is best to have an alternative way to save money for retirement. This article explores the two types of savings including, Programmed Retirement and Immediate Life Rent. It also shares the pros and cons of such plans and how to determine which of the two savings—or a little of both—is appropriate.

Dominican Republic: The Senate Defends Miolán’s Pension (January 3, 2007)
(Article in Spanish)
The elderly former delegate of the Dominican Revolutionary Party, Ángel Miolán, receives a pension of RD$52,000 a month. Some citizens object to the amount of his pension and cited nepotism and favoritism in determining the pension’s high level. It seems such high pensions for politicans are a common practice. However, the Senate defended Mr. Miolán’s pension. Carmen Miolán, Mr. Miolán’s daughter, defended her father and stated that he deserved the pension for all the work and effort he dedicated for the government.

Uruguay: A New Law in Uruguay for Persons over 70 Years (December 27, 2006)
(Article in Spanish)
A new law took effect in December 2006 for persons older than 70 years who receive a pension of less than $4.400 (USD183.26) per month. Around 50,000 of these retired people will receive an additional $120 (USD5) per month for the next five years. Some deputies complained that this very small payment only helps some retired people. They urged that all retirement pensions be increased rather than giving this small amount to only a few older persons. 

Australia: Government Reaps Millions from Elderly (June 11, 2007)
According to Aged Support, hundreds of Australians who work beyond retirement age in return for a pension bonus worth up to $32,000 die before they get the benefit. The work-till-you-drop policy has saved the Federal Government tens of millions of dollars in pension payments, but left it severely embarrassed. The Community Services Minister now promises to change the law that prevents spouses of elderly workers from claiming the bonus owed to their dead husband or wife.

Singapore: Elder Workers in Singapore Suffer From Neglect (June 1, 2007)
(Article in Arabic)
At a recent meeting that brought together the public and private sector in Singapore, a senior official for a Singapore company said that the state must rethink the ways in which it goes about hiring elder persons. The current law on employment in Singapore will be renewed in 2012. Officials expect it will offer provisions for the employment of elder citizens, should they wish to leave retirement and re-enter the work force.  In the meantime, the Singapore government hopes to partner with the private sector on the rights of elder persons in the workplace.

Japan: Japan Worried about its Elderly Population; Resorts to Women and Older Persons to Fill the Gap (May 17, 2007)
(Article in Arabic)
Japan is worried about its aging population; many have said that it might not be able to maintain its production levels if younger persons do not enter the workforce. In an effort to circumvent a drop in production levels, more and more Japanese companies are hiring older workers, or retaining them for longer periods of time. Older workers say they are happy to work as long as they can, and managers say that older workers are actually more productive than their younger counterparts. The government has also increased the age of retirement from 60 to 65. “There are four solutions to our lack of workers in Japan,” said one company president. “We can hire elder persons, women, or foreigners. After that, the only solution we have available to us is robots.”

Taiwan: The Government Wishes to Pass its New Law on Pensions Quickly (April 24, 2007)
(Article in French)
A Chinese newspaper revealed a plan to change the Taiwan pension system. The project specifies that “persons over 65 years old, who have paid contributions for at least 40 years, will entitled to a monthly pension of NT$ 7603 (about US$ 265).” The law would also help people that are not covered with private insurance. The government would pay a portion while private funds would finance the remainder. The government spokesperson, Mrs. Chen, announced that the government will not increase the social funds as long as the new pension system is not implemented.

Philippines: Arroyo Asks SSS to Hike Pensions By 10% (April 19, 2007)
Filipino President Macapagal-Arroyo proposed to raise the pension of SSS (Social Security System) by 10 percent, only few months after already increasing it. To finance such a proposal, she called for the generosity of employers’ confederations. She’s also planning to activate some 200,000 SSS accounts in order to receive more contributions; among others the President asked the SSS to increase the coverage of overseas workers, especially those living in the US.

India: Micro-Pension Efforts (March 26, 2007)
Members of a Self-Employed Women Association launched a micro-pension initiative one year ago. Other cooperative banks followed this example and created pension funds that will take contributions from self-employed and especially women. Micro-pension funds invest their contributions and give back their benefits beginning at the age of 58 years. Particularly efficient in rural areas, the micro-pension system encourages women, who are marginalized, to “start entrepreneurial projects.” 

China: Provide Income Security to the Chinese Elderly (March 16, 2007)
(Article in Chinese)
As China has become an aging society, it faces the challenges of ensuring every Chinese elder person with a happy life in retirement. During the sessions of National People’s Congress (NPC) and Chinese People’s Political Consultative Conference (CPPCC), many representatives expressed their concerns over the elderly income security problem. The representatives proposed expanding the pension coverage to the rural areas as well as supporting many channels to give income support to urban older persons.

China: Establish a Pension System that Fits the Needs of Migrant Farmers (March 8, 2007)
(Article in Chinese)
As more and more farmers migrate into cities and become the “rural workers,” they need some pension coverage, an issue that has caught the attention of policymakers. During the Chinese People’s Political Consultative Conference (CPPCC), Li Zhenya, a CPPCC committee member, proposed establishing a pension system that fits the needs of the migrant farmers. Meanwhile, Sun Jie, a professor at Economic and Trade University submitted a similar proposal titled “Suggestions to Establish a Pension System for Migrant Farmers”. Both proposals suggest a pension system with individual accounts instead of pooled accounts. In order to benefit fully the migrant farmers, the pension system should attempt to use a low tax rate, to have wide coverage, and to be easy to transfer among different regions.

China: China Needs to Establish a Survivor’s Pension Insurance System (March 7, 2007)
(Article in Chinese)
According to Pei Xiaomei, Professor of Sociology at Tsinghua University, China should establish a survivor’s pension insurance system soon in order to provide old age income security to the elderly who are not covered by the current pension system due to their insufficient working years and contribution to the pension system. In China, the older persons constitute a large proportion of the population living in under poverty. And among the impoverished elderly, elderly widowed women with no income need the most attention. The current social security system does not provide effective protection for the widowed elderly with sufficient income security.

China: Fair Pension (March 7, 2007)
(Article in Chinese)
The National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) accepted the proposal titled “Fair Pension” for discussion proposal for the first time in history. “Unfair pension” as a social problem refers to two issues. First, it comments on the huge difference in pension levels between retirees from government agencies and retirees of enterprises. Second, it also refers to the fact that a large part of Chinese citizens have no coverage in the national pension system. For instance, 900 million farmers are still not included in the pension system. The Chinese government must resolve how it will deal with the disparity in pension coverage for all its citizens.

China: Pension Can Differ by Eight Times (February 28, 2007)
(Article in Chinese)
China’s pension system lacks equity due to the huge difference in pension levels depending on which region the retirees have worked and whether s/he worked for government agencies or enterprises. Therefore, the National People’s Congress (NPC) is going to discuss the proposal of a pension system managed at the national level. This proposal suggests resolving the disparities in the pension system with structural adjustments in the system. The proposal suggests managing the pension system at the national level, increasing the pension of enterprise retirees, and adjusting pension levels to reflect a fair system.

India: Government Likely to Create Pension Fund for Unorganized Sector (February 22, 2007)
Prime Minister Manmohan Singh announced last month “the need for a comprehensive pension system for workers in the unorganized sector” because, until now, only government workers benefit from old-age coverage. The parliament will present a bill on “Unorganized Workers’ Social Security,” setting up a national pension fund for unorganized workers, i.e., 93% of the Indian labor force. However, details about contributors, implementation and modalities of payment still have to be determined.