Mark Dorfman - Academia.edu (original) (raw)
Papers by Mark Dorfman
Nonfinancial defined contribution (NDC) schemes offer governments desirable properties in terms o... more Nonfinancial defined contribution (NDC) schemes offer governments desirable properties in terms of efficiency, fairness, and financial sustainability and an opportunity to deflect the blame for pension cuts. Yet adoptions of NDC schemes largely ground to a halt and several countries retreated from NDC implementation after legislation. Lack of support from powerful international actors is partly to blame, as is the perceived rigidity of NDC in reducing room for policy maneuver. Correct implementation requires substantial administrative capacity. Less demanding automatic stabilizing mechanisms undercut the appeal of NDC in the European Union. Thus, while being an important option for policy makers and a benchmark against which to measure alternative reforms, NDC is unlikely to become the dominant pension design choice anytime soon.
The impact of the financial crisis extends beyond immediate losses to pension fund assets. Abrupt... more The impact of the financial crisis extends beyond immediate losses to pension fund assets. Abrupt policy changes in response to the immediate circumstances should be avoided. Pension systems are designed to function over very long time periods. Short term responses to relatively rare circumstances can potentially have negative long term consequences on the capacity of pension systems to reliably provide
This work is a product of the staff of The World Bank with external contributions. Note that The ... more This work is a product of the staff of The World Bank with external contributions. Note that The World Bank does not necessarily own each component of the content included in the work. The World Bank therefore does not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringement rests solely with you. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.
Pension and social insurance programs that prevent a substantial loss in consumption resulting fr... more Pension and social insurance programs that prevent a substantial loss in consumption resulting from old age, disability, or death are an integral part of any social protection system. The dual objectives of such programs are to allow for the prevention of a sharp decline in income when these life-cycle events take place and protection against poverty in old age. This background paper reviews the World Bank's conceptual framework for the analysis of pension programs and defines the major challenges facing low and middle income countries, namely, coverage, adequacy and sustainability. The paper proposes a broad, forward-looking strategy to help address these challenges.
The World Bank's conceptual framework to assess pension systems and reform options evaluates ... more The World Bank's conceptual framework to assess pension systems and reform options evaluates initial conditions and the capacity to improve the enabling environment, and then focuses on how best to work within these to achieve the core objectives of pension systems - protection against the risk of poverty in old age and smoothing consumption from one's work life into retirement. The Bank applies a multi-pillared approach towards pension system modalities to address the needs of target populations including: (i) a non-contributory 'zero pillar' extending some level of old-age income security to all of the elderly; (ii) an appropriately sized mandatory 'first pillar' with the objective of replacing some portion of lifetime pre-retirement income through contributions linked to earnings; (iii) a funded mandatory defined-contribution 'second pillar' that typically provides privately-managed individual savings accounts; (iv) a funded voluntary 'third-pi...
Pension and social insurance programs that prevent a substantial loss in consumption resulting fr... more Pension and social insurance programs that prevent a substantial loss in consumption resulting from old age, disability, or death are an integral part of any social protection system. The dual objectives of such programs are to allow for the prevention of a sharp decline in income when these life-cycle events take place and protection against poverty in old age. This
The World Bank's conceptual framework to assess pension systems and reform options evaluates init... more The World Bank's conceptual framework to assess pension systems and reform options evaluates initial conditions and the capacity to improve the enabling environment, then focuses on how best to work within these to achieve the core objectives of pension systems-protection against the risk of poverty in old age and smoothing consumption from one's work life into retirement. The Bank applies a multi-pillared approach towards pension system modalities to address the needs of target populations including: (i) a non-contributory "zero pillar" extending some level of old-age income security to all of the elderly; (ii) an appropriately sized mandatory "first pillar" with the objective of replacing some portion of lifetime pre-retirement income through contributions linked to earnings; (iii) a funded mandatory defined-contribution "second pillar" that typically provides privately-managed individual savings accounts; (iv) a funded voluntary "third-pillar;" and (v) a non-financial "fourth pillar." The primary evaluation criteria are the ability of the system to maintain adequacy, affordability, sustainability, equity, predictability and robustness. The secondary evaluation criteria are the system's capacity to: minimize labor market distortions; contribute to savings mobilization; and contribute to financial market development. Because pension benefits are claims against future economic output, it is essential that over time pension systems contribute to growth and output to support the promised benefits. Going forward, the Bank is focusing on strengthening its support in: (a) establishing a clearer results framework to assess pension systems and reforms; (b) enhancing knowledge management, including research and learning; and (c) improving implementation capacity.
No abstract is available for this item.
The World Bank's conceptual framework to assess pension systems and reform options evaluates init... more The World Bank's conceptual framework to assess pension systems and reform options evaluates initial conditions and the capacity to improve the enabling environment, then focuses on how best to work within these to achieve the core objectives of pension systems--protection against the risk of poverty in old age and smoothing consumption from one's work life into retirement. The Bank applies a multi-pillared approach towards pension system modalities to address the needs of target populations including: (i) a non-contributory "zero pillar" extending some level of old-age income security to all of the elderly; (ii) an appropriately sized mandatory "first pillar" with the objective of replacing some portion of lifetime pre-retirement income through contributions linked to earnings; (iii) a funded mandatory defined-contribution "second pillar" that typically provides privately-managed individual savings accounts; (iv) a funded voluntary "third-pillar;" and (v) a non-financial "fourth pillar." The primary evaluation criteria are the ability of the system to maintain adequacy, affordability, sustainability, equity, predictability and robustness. The secondary evaluation criteria are the system's capacity to: minimize labor market distortions; contribute to savings mobilization; and contribute to financial market development. Because pension benefits are claims against future economic output, it is essential that over time pension systems contribute to growth and output to support the promised benefits. Going forward, the Bank is focusing on strengthening its support in: (a) establishing a clearer results framework to assess pension systems and reforms; (b) enhancing knowledge management, including research and learning; and (c) improving implementation capacity. JEL Classification: H55, J14, J26
Nonfinancial defined contribution (NDC) schemes offer governments desirable properties in terms o... more Nonfinancial defined contribution (NDC) schemes offer governments desirable properties in terms of efficiency, fairness, and financial sustainability and an opportunity to deflect the blame for pension cuts. Yet adoptions of NDC schemes largely ground to a halt and several countries retreated from NDC implementation after legislation. Lack of support from powerful international actors is partly to blame, as is the perceived rigidity of NDC in reducing room for policy maneuver. Correct implementation requires substantial administrative capacity. Less demanding automatic stabilizing mechanisms undercut the appeal of NDC in the European Union. Thus, while being an important option for policy makers and a benchmark against which to measure alternative reforms, NDC is unlikely to become the dominant pension design choice anytime soon.
The impact of the financial crisis extends beyond immediate losses to pension fund assets. Abrupt... more The impact of the financial crisis extends beyond immediate losses to pension fund assets. Abrupt policy changes in response to the immediate circumstances should be avoided. Pension systems are designed to function over very long time periods. Short term responses to relatively rare circumstances can potentially have negative long term consequences on the capacity of pension systems to reliably provide
This work is a product of the staff of The World Bank with external contributions. Note that The ... more This work is a product of the staff of The World Bank with external contributions. Note that The World Bank does not necessarily own each component of the content included in the work. The World Bank therefore does not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringement rests solely with you. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Nothing herein shall constitute or be considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved.
Pension and social insurance programs that prevent a substantial loss in consumption resulting fr... more Pension and social insurance programs that prevent a substantial loss in consumption resulting from old age, disability, or death are an integral part of any social protection system. The dual objectives of such programs are to allow for the prevention of a sharp decline in income when these life-cycle events take place and protection against poverty in old age. This background paper reviews the World Bank's conceptual framework for the analysis of pension programs and defines the major challenges facing low and middle income countries, namely, coverage, adequacy and sustainability. The paper proposes a broad, forward-looking strategy to help address these challenges.
The World Bank's conceptual framework to assess pension systems and reform options evaluates ... more The World Bank's conceptual framework to assess pension systems and reform options evaluates initial conditions and the capacity to improve the enabling environment, and then focuses on how best to work within these to achieve the core objectives of pension systems - protection against the risk of poverty in old age and smoothing consumption from one's work life into retirement. The Bank applies a multi-pillared approach towards pension system modalities to address the needs of target populations including: (i) a non-contributory 'zero pillar' extending some level of old-age income security to all of the elderly; (ii) an appropriately sized mandatory 'first pillar' with the objective of replacing some portion of lifetime pre-retirement income through contributions linked to earnings; (iii) a funded mandatory defined-contribution 'second pillar' that typically provides privately-managed individual savings accounts; (iv) a funded voluntary 'third-pi...
Pension and social insurance programs that prevent a substantial loss in consumption resulting fr... more Pension and social insurance programs that prevent a substantial loss in consumption resulting from old age, disability, or death are an integral part of any social protection system. The dual objectives of such programs are to allow for the prevention of a sharp decline in income when these life-cycle events take place and protection against poverty in old age. This
The World Bank's conceptual framework to assess pension systems and reform options evaluates init... more The World Bank's conceptual framework to assess pension systems and reform options evaluates initial conditions and the capacity to improve the enabling environment, then focuses on how best to work within these to achieve the core objectives of pension systems-protection against the risk of poverty in old age and smoothing consumption from one's work life into retirement. The Bank applies a multi-pillared approach towards pension system modalities to address the needs of target populations including: (i) a non-contributory "zero pillar" extending some level of old-age income security to all of the elderly; (ii) an appropriately sized mandatory "first pillar" with the objective of replacing some portion of lifetime pre-retirement income through contributions linked to earnings; (iii) a funded mandatory defined-contribution "second pillar" that typically provides privately-managed individual savings accounts; (iv) a funded voluntary "third-pillar;" and (v) a non-financial "fourth pillar." The primary evaluation criteria are the ability of the system to maintain adequacy, affordability, sustainability, equity, predictability and robustness. The secondary evaluation criteria are the system's capacity to: minimize labor market distortions; contribute to savings mobilization; and contribute to financial market development. Because pension benefits are claims against future economic output, it is essential that over time pension systems contribute to growth and output to support the promised benefits. Going forward, the Bank is focusing on strengthening its support in: (a) establishing a clearer results framework to assess pension systems and reforms; (b) enhancing knowledge management, including research and learning; and (c) improving implementation capacity.
No abstract is available for this item.
The World Bank's conceptual framework to assess pension systems and reform options evaluates init... more The World Bank's conceptual framework to assess pension systems and reform options evaluates initial conditions and the capacity to improve the enabling environment, then focuses on how best to work within these to achieve the core objectives of pension systems--protection against the risk of poverty in old age and smoothing consumption from one's work life into retirement. The Bank applies a multi-pillared approach towards pension system modalities to address the needs of target populations including: (i) a non-contributory "zero pillar" extending some level of old-age income security to all of the elderly; (ii) an appropriately sized mandatory "first pillar" with the objective of replacing some portion of lifetime pre-retirement income through contributions linked to earnings; (iii) a funded mandatory defined-contribution "second pillar" that typically provides privately-managed individual savings accounts; (iv) a funded voluntary "third-pillar;" and (v) a non-financial "fourth pillar." The primary evaluation criteria are the ability of the system to maintain adequacy, affordability, sustainability, equity, predictability and robustness. The secondary evaluation criteria are the system's capacity to: minimize labor market distortions; contribute to savings mobilization; and contribute to financial market development. Because pension benefits are claims against future economic output, it is essential that over time pension systems contribute to growth and output to support the promised benefits. Going forward, the Bank is focusing on strengthening its support in: (a) establishing a clearer results framework to assess pension systems and reforms; (b) enhancing knowledge management, including research and learning; and (c) improving implementation capacity. JEL Classification: H55, J14, J26