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The Role of Private Sector Annuities Markets in an Individual Accounts Reform of a Public Pension Plan

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  • Mr. George A Mackenzie

Abstract

Pension reforms that establish individual accounts will diminish the relative importance of the traditional state pension while creating a significant role for individual accounts in providing income for retirement. This paper surveys the policy issues this new role entails. It offers general advice to countries considering such issues as the restrictions to be placed on the timing, extent, and form of withdrawals from individual accounts and the need for mandatory annuitization (conversion into annuities) of accumulated account balances. The paper also considers the role that private annuity markets should play and related regulatory, social safety net, tax, and administrative questions.

Suggested Citation

  • Mr. George A Mackenzie, 2002. "The Role of Private Sector Annuities Markets in an Individual Accounts Reform of a Public Pension Plan," IMF Working Papers 2002/161, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/161
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    References listed on IDEAS

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    1. David Blake, 1999. "Annuity Markets: Problems and Solutions," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 24(3), pages 358-375, July.
    2. Jeffrey R. Brown, 2003. "Redistribution and Insurance: Mandatory Annuitization With Mortality Heterogeneity," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 70(1), pages 17-41, March.
    3. ,, 1999. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 15(3), pages 427-432, June.
    4. ,, 1999. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 15(4), pages 629-637, August.
    5. ,, 1999. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 15(5), pages 777-788, October.
    6. ,, 1999. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 15(1), pages 151-160, February.
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    Cited by:

    1. Bravo, Jorge Miguel & El Mekkaoui de Freitas, Najat, 2018. "Valuation of longevity-linked life annuities," Insurance: Mathematics and Economics, Elsevier, vol. 78(C), pages 212-229.
    2. Ms. Janet Kong & Mr. Manmohan Singh, 2005. "Insurance Companies in Emerging Markets," IMF Working Papers 2005/088, International Monetary Fund.
    3. Ferro, Gustavo, 2008. "Un impulso al mercado de rentas vitalicias en España [Promoting the annuities market in Spain]," MPRA Paper 20211, University Library of Munich, Germany, revised Jul 2008.
    4. Ferro, Gustavo, 2008. "On annuities: an overview of the issues," MPRA Paper 20209, University Library of Munich, Germany, revised Oct 2009.
    5. Sluchynsky, Oleksiy, 2015. "Defining, measuring, and benchmarking administrative expenditures of mandatory social security programs," Social Protection Discussion Papers and Notes 95198, The World Bank.

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