No abstract

In the 1990s, following the earlier example of Chile, pension system reforms were implemented in a number of Latin American and other countries. These reforms focused on introducing models of pension provision that were fullyfunded and privately managed. Although aspects of these reforms have been positive, for many persons covered by these systems retirement income is not adequate. The development of occupational pension plans may offer an alternative, complementary mechanism to help improve pension adequacy. This article discusses different complementary pension plan models and examines the case of the Dominican Republic. It argues that complementary occupational pension plans may be a viable policy option for this developing country.i ssr_1393 65..89

The paper studies the effects that individually funded pension schemes have on inclusive growth. For this, the reform introduced in 2001 in the Dominican Republic is analysed, one of the last to join the wave of reforms in the style of the “Chilean model” started in the eighties. Thus, it is found that the introduction of the individual savings system has led the Dominican Republic to grow more than one additional percentage point each year between the 2003-2019 period in its average estimates, which implies that for each point of growth it has experienced the Dominican GDP, 22% is explained by the operation of the private pension system. It has also been found that the annual impact on the saving-investment ratio has been 0.89% per year, which has resulted in the country's financial development index improving at an additional 0.21% per year and that the rate differential interest has been reduced by an average of 3.15% during the study period. As part of the virtuous circle fostered by the private pension system since its introduction, thanks to the operation of the private pension system, today the poverty rate is almost 4 points lower than in a scenario in which this reform had not been introduced. Keywords: private pensions, social security, economic growth, Latin America.

Resumen En el decenio de 1990, siguiendo el ejemplo anterior de Chile, se llevaron a cabo reformas de los regímenes de pensiones en varios países de América Latina y de otras regiones. El objetivo de estas reformas era introducir modelos de regímenes de pensiones de capitalización total y gestión privada. Si bien determinados aspectos de estas reformas han sido positivos, muchas de las personas que reciben protección de estos sistemas consideran que los ingresos de jubilación no son adecuados. Puede que el desarrollo de regímenes complementarios profesionales ofrezca una solución alternativa, como mecanismo complementario que permita mejorar las pensiones. En el presente artículo se analizan diferentes modelos de regímenes complementarios de pensiones y se examina el caso de la República Dominicana. También se señala que los regímenes complementarios profesionales pueden ser una opción de política viable en el caso de este país en desarrollo.