2006 5 3 15 25 1 25 80 1 19 1924 1 1 1979 32 Cajas) 95% SSS(Social Security Service ) 65% EMPART(Private Employees Social Security Fund ) 18%CANAEMPU(the National Fund of Public Employees and Journalists) 12% 2 (2) Collective Capitalization Funds 1952 (3) 1 2 AFP 2001 2 Rodrigo Acuña R.Augusto Iglesias P., Chile s Pensi on Reform after 20 Years,World Bank Social Protection Discussion Papers No. 0129, December 2001.
61.9% 22.8%1 3 (4)1960 1980 60-79% 73 80 64% 4 1 ( %) SSS EMPART CANAEMPU 1968-73 7.25 14.25 21.5 9 17 26 11 5 16 1974-77 7.25 15.95 23.2 9 17 26 11 5 16 1978 7.25 15.95 23.2 10.16 15 25.16 11 5 16 1979-80 7.25 15.7 22.95 10.16 14.75 24.91 11 4.75 15.75 SAFP http://www.safp.cl 50 80 1 1955 1979 12.2 1 2.5 1 25 4 1975 1980 6 40% GDP 3% 5 2 15 24 30 35 65 1965 70% 10% 1/4 6 3 7 2 1981 20 50 3 Rodrigo Acuña R.Augusto Iglesias P., Chile s Pension Reform after 20 Years,World Bank Social Protection Discussion Papers No. 0129, December 2001. 4 Supnerintendency of Pension Fund Aministrators: The Chilean Pension System (Fourth Edition),2003,p.31. 5 Supnerintendency of Pension Fund Aministrators:The Chilean Pension System (Fourth Edition),2003,p.35. 6 AFP http://www.afp-ag.cl/ingles/02_05.asp. 7 Supnerintendency of Pension Fund Aministrators: The Chilean Pension System (Fourth Edition),2003,p.39. 2
70 1980 11 4 3500 (Decree Law 3500) 8 1980 11 6 9 1981 5 1 2 AFPs 3 AFPs 4 SAFP AFPs 1983 1 1 1983 65 3 32 INP MPG 1980 20 1975 65 50% 10 80 1980 2 2 (1924-1981 ) 81 DB 81 1 ( ) 8 3500 SAFP http://www.safp.cl 9 Sebastian Edwards, The Chilean Pension Reform: A Pioneering Program, NBER Working Paper No.5811, November 1996. 10 3
2 ( ) DC 4 1978 6 30 1979 7 30 80% /35 11 4% 1980 11 5 12 80% 80% 35 12 5 80 (1) 1980 GDP 5.5% 13 1974 1975 11 Supnerintendency of Pension Fund Aministrators: The Chilean Pension System (Fourth Edition),2003,p.48. 12 Rodrigo Acuña R.Augusto Iglesias P., Chile s Pension Reform after 20 Years,World Bank Social Protection Discussion Papers No. 0129, December 2001. 13 Klaus Schmidt-Hebbel Chile s Pension Revolution Coming of Age,Paper prepared for the DIA Project,1999, http://schmidt-hebbel.com/pdf/sh99pr.pdf. 4
14 (2) 15 (3) 1974 1976 1977 1981 GDP 8% 11% 16 1 10% AFPs 10% 60UF 17 EET 10% AFPs (Commission) AFPs 2 AFP 3500 AFP 1 AFPs AFPs 14 1995 4 15 2004 1 56 16 1995 4 17 UF CPI UF ( ) 2001 1UF 24.3 60UF 1455 ;2006 4 15 1UF 17,931.90 (peos) 34.9 60UF 2090 UF UF t =UF t-1 (1+Π) 1/d UF t UF t-1 Π d Robert J.Shiller, Indexed Unit of Account:Theory and Assessmentof Historical Experience, http://www.bcentral.cl/eng/stdpub/studies/workingpaper/pdf/dtbc308.pdf 5
2 AFPs AFP 36 (2002 12 ) 2 50%( ) AFP 1% 3 AFPs AFP 3 Edition), 2003,p.91. 3 AFPs AFP Supnerintendency of Pension Fund Aministrators: The Chilean Pension System (Fourth 4 4 AFPs AFP AFP SAFP AFP 2000 2002 A B C D E 4 1981 2004 % 1981 1985 1990 1995 2002 A 2004 B C D E 100 50 45 50 50 40 40 50 70 80 50 40 50 50 50 40 40 50 70 80 80 80 80 50 50 40 40 50 60 70 60 40 50 45 45 30 30 40 50 60 6
- 30 30 37 40 60 50 30 15 - - - 10 10 25 40 30 20 10 - - - - - 5 5 5 5 5 - - 1-10 10 10 10 10 10 20 30 - - - 9 16 - - - 4.5 10 - - - 9 20 A B C D E 30% - - - - - 15 10 5 5 5 1 1 1 (>1 ) 5 5 5 5 5 Chile AFP Association, Limit on Investment Abroad Prejudicial for Pensions, AFP Research Series No 45, November 2004. NN 3 65 60 50% 1.1 (PW) (Life AnnuityLA) 18 ( UF ) AFP 4 18 2004 2004 7
1980 19 1 20 AFPs AFPs 2 AFPs SAFP 6 AFPs SAFP 25 1 1 25 10% UF 1991 29.7% 1995 2.5% 2004 9.3% 1981 2004 608 19.66 UF GDP 67% 24 28.3% 21 2 25 AFP 20 AFP 19 AFP 2001 55 20 SAFP http://www.safp.cl 21 FIAP,18th Bi Annual Report International Federation of Pension Fund Administrators, June 2005; SAFP http://www.safp.cl/sist_previsional/index.html. 8
AFP AFP 2003 Inverlink 22 3 20 1980 GDP 65% 2003 217% GDP OECD 23 5 2003 ( ) 5 2003 ( %) 30 48 12 5 95 8 43 30 6 87 4 29 37 1 72 0 8 1 2 11 6 24 4 15 50 Juan Yermo, The Contribution of Pension Funds to Capital Market Development in Chile,Oxford University and OECD, September 2005. 4 1 80 80 GDP 5% 2000 20% 1981 2002 GDP 2.3% 47% GDP 1.2% 57% 24 2 22 Inverlink 2003 5 Magister 1 11.3 Inverlink Magister Chile AFP Association, The Inverlink Case Will Not Affect the Pension Funds, Research Series No.31, April 2003. 23 Juan Yermo, The Contribution of Pension Funds to Capital Market Development in Chile,Oxford University and OECD, September 2005. 24 Klaus Schmidt-Hebbel,Vittorio Corbo, Macroeconomic Effects of Pension Reform In Chile, http://www.fiap.cl/p4_fiap_eng/antialone.html?page=/p4_fiap_eng/site/edic/base/port/articles.html. 9
DC 3 GDP 1981 2001 GDP 0.49 20 (4.63) 1/10 25 25 1 1 1 80 2004 30% 55% 26 ( 3%) 58% 80 60% 1: 1986 2004 % Alberto Arenas de Mesa,Jere Behrman,David Bravo, Characteristics of and Determinants of the Density of Contributions in a Private Social Security System, Retirement Research Center of Michigan University, February 2004. 2 25 25 26 Solange Berstein, Guillermo Larrain, Francisco Pino, Chilean Pension Reform:Coverage Facts and Prospects,Superintendence of AFP,2005. 10
1986 2003 63.3% 76.3% 12.2% 6.5% 88 158 2003 20% 27 1981 2003 6% 2000 (CASEN) 2 1 1982 4.8% 2004 2.4% 1.4% 1/8 2004 23.82% 1/5 28 2 AFPs AFPs AFP 20 AFP 20 6 AFP 5 AFP 50% 29 3 ( ) 1% 9% 1/3 IMF 0.2 ( ) 30 27 Alberto Arenas de Mesa Fiscal and Institutional Considerations of Pension Reform:Lessons Learned from Chile in A Quarter Century of Pension Reform in Latin America and the Caribbean: Lessons Learned and Next Steps,Edited by Carolin A, Crabbe Editor, Inter-American Development Bank 2005,p219. 28 Mauricio Soto, Chilean Pension Reform: the Good, the Bad, and the in Between, Boston College Retirement Research Center, June 2005. 29 Larry Rohter, Chile's Candidates Agree to Agree on Pension Woes,New York Times,January 10, 2006. 30 Valdés-Prieto, Salvador, A Chilean economist's comment on Larry Rohter's reporting on Chilean Pensions, New York Times,January 27, 2005. 11
3 25 200 97 31 ( ) 2005 6 70% 32 4 1 1981 ( 2) 33 Berstein Larraín Ríos Pino 2005 24000 30 40-50% 10% 34 2 31 Solange Berstein, The Chilean Pension System:Facts and Challenges,March 2006,http://www.iopsweb.org/document/28/0,2340,en_35030657_35030420_35970908_1_1_1_1,00.html. 32 SAFP http://www.safp.cl 33 Gonzalo Reyes and Francisco Pino, Income inequality in an Individual Capitalization Pension System: the Case of Chile,April 2005, http://wwwtest.aup.edu/lacea2005/system/step2_php/papers/reyes_grey.pdf. 34 Solange Berstein, Guillermo Larrain, Francisco Pino, Chilean Pension Reform: Coverage Facts and Prospects, Superintendence of AFP, 2005. 12
Gonzalo Reyes and Francisco Pino, Income inequality in an Individual Capitalization Pension System: the Case of Chile,April 2005, http://wwwtest.aup.edu/lacea2005/system/step2_php/papers/reyes_grey.pdf 2 2000 80 9.4% 90 7% 80 90 35% 35 Contribution Density 36 52% 37 5 6 2010 GDP 4% 2010 2030 20 6 GDP %) 1981-99 2004 2005-09 2010-19 2020-30 35 Indermit S. Gill, Truman Packard and Juan Yermo,Keeping the Promise of Social Security in Latin America,World Bank,2004,p.139. 36 37 Alberto Arenas de Mesa,Jere Behrman,David Bravo, Characteristics of and Determinants of the Density of Contributions in a Private Social Security System, Retirement Research Center of Michigan University, February 2004. 13
3.3 4.0 3.7 2.4 0.9 0 1 2.8 2.7 2.4 1.6 0.8 0 2 0.5 1.3 1.3 0.8 0.1 0 0 0 0.1 0.1 0.3 1.6 0.4 0.4 0.4 0.4 0.6 1.1 3.7 4.4 4.2 2.9 1.8 2.7 IMF, Chile: Selected Issues, Country Report No. 05/316, September 2005. 1 1 2005 21 38 20 38 21 2006 6 14
30-50 80 2 1981 DB 20 1973 1981 DC 90 DC 15 90 DB 39 2 25 1 80 39 2006 6 15
2 2002 3 80 70 80 3 16
AFP 2001 1995 4 2004 21 2006 6 2006 6 Alberto Arenas de Mesa,Jere Behrman,David Bravo, Characteristics of and Determinants of the Density of Contributions in a Private Social Security System, Retirement Research Center of Michigan University, February 2004. Chile AFP Association, The Inverlink Case Will Not Affect the Pension Funds, Research Series No.31, April 2003. Chile AFP Association, Limit on Investment Abroad Prejudicial for Pensions, AFP Research Series No 45, November 2004. FIAP,18th Bi Annual Report International Federation of Pension Fund Administrators, June 2005 Gonzalo Reyes and Francisco Pino, Income inequality in an Individual Capitalization Pension System: the Case of Chile, April 2005, http://wwwtest.aup.edu/lacea2005/system/step2_php/papers/reyes_grey.pdf Indermit S. Gill, Truman Packard and Juan Yermo,Keeping the Promise of Social Security in Latin America,World Bank,2004,p.139. Juan Yermo, The Contribution of Pension Funds to Capital Market Development in Chile,Oxford University and OECD, September 2005. Klaus Schmidt-Hebbel Chile s Pension Revolution Coming of Age,Paper prepared for the DIA Project,1999, http://schmidt-hebbel.com/pdf/sh99pr.pdf. Klaus Schmidt-Hebbel,Vittorio Corbo, Macroeconomic Effects of Pension Reform In Chile, http://www.fiap.cl/p4_fiap_eng/antialone.html?page=/p4_fiap_eng/site/edic/base/port/articles.html. Larry Rohter, Chile's Candidates Agree to Agree on Pension Woes,New York Times,January 10, 2006. Mauricio Soto, Chilean Pension Reform: the Good, the Bad, and the in Between, Boston 17
College Retirement Research Center, June 2005. Rodrigo Acuña R.Augusto Iglesias P., Chile s Pension Reform after 20 Years,World Bank Social Protection Discussion Papers No. 0129, December 2001. Sebastian Edwards, The Chilean Pension Reform: A Pioneering Program, NBER Working Paper No.5811, November 1996. Solange Berstein, Guillermo Larrain, Francisco Pino, Chilean Pension Reform:Coverage Facts and Prospects,Superintendence of AFP,2005. Solange Berstein, The Chilean Pension System:Facts and Challenges,March 2006,http://www.iopsweb.org/document/28/0,2340,en_35030657_35030420_35970908_1_1_1_1,00. html. Supnerintendency of Pension Fund Aministrators: The Chilean Pension System (Fourth Edition),2003 Valdés-Prieto, Salvador, A Chilean economist's comment on Larry Rohter's reporting on Chilean Pensions, New York Times,January 27, 2005. Review on the 25 Years History of the Chilean Model Social Security Reform [Abstract] Along the history of modern social security system, one of the most radical and important reform was the privatization of the Chilean pension system in 1981. It was the first privatization in the world that completely substituted the old public PAYGO collective pension scheme with a new private fully-funded individual pension system. Chilean Model has attracted world-wide attention, and triggered a drastic debate on social security privatization. This paper looks back at the reform process and development history of Chilean private pension system in the past 25 years, then summarizes and comments on Chilean Model Key Words: Social Security; Chilean Model; Private Pension Fund Author:Zheng Bingwen Institute of Latin American Studies,CASS Fang Lianquan Institute of Latin American Studies,CASS 18