Suggestions for Pension Re-Reform in Peru

Authors

  • Carmelo Mesa-Lago

DOI:

https://doi.org/10.21678/apuntes.78.834

Keywords:

Peru, old-age pensions, re-reform, social dialogue, coverage, benefit sufficiency, administrative costs, financial-actuarial sustainability, AFP.

Abstract

This essay proposes the need for an integral re-reform of the Peru pensionsystem, preceded by broad social dialogue, in order to overcome this system’smajor flaws. As well as a comprehensive model of re-reform, it recommendsspecific measures that: extend the low level of coverage of the labor forceand the elderly, expand Pensión 65, guarantee the minimum pension, improvebenefits, unify the national and private pension systems, increase competitionand reduce the high administrative costs and profits of private pension funds(AFP), create a public AFP, strengthen financial and actuarial sustainability, raisecapital returns, and shift the disability-survivors premium to employers. Thisproposal also favors mandatory rather than voluntary affiliation to the AFP.

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Published

2016-05-27

Issue

Apuntes 78: Pensions Systems in Latin America

Section

Articles

License

Apuntes publishes all its articles and reviews under a Creative Commons Attribution (CC BY 4.0) license with the objective of promoting academic exchange worldwide. Therefore, articles and book reviews can be distributed, edited, amended, etc., as the author sees fit. The only condition is that the name of the author(s) and Apuntes. Revista de Ciencias Sociales (as the publisher) be cited.

How to Cite

Mesa-Lago, C. (2016). Suggestions for Pension Re-Reform in Peru. Apuntes. Social Sciences Journal, 43(78), 41-60. https://doi.org/10.21678/apuntes.78.834