NEWS + ANALYSIS
REMBERTO LATORRE-ARTUS

NEWS + ANALYSIS

WILL CHILE END ITS PRIVATE PENSION PROGRAM?

June 10, 2014 | by Remberto Latorre-Artus

Chile’s socialist president Michelle Bachelet has named a commission to revise the country’s successful 35-year-old pension reform based on mandatory individual retirement accounts (IRAs). Bachelet declared: “Today, after more than 30 years, it is our duty to determine if the system has kept the promise made when the public system ended.”

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CHINA LOOKS INTO INDIVIDUAL RETIREMENT ACCOUNTS AMID THE GROWING NUMBER OF CLUB SEP COUNTRIES

May 30, 2014 | by Remberto Latorre-Artus

Over the past few years, Chinese experts have been concerned about the increasing financial burden of China’s aging population, which was propelled by the family-planning approach known as the “one child” policy. Yang Yansui, a pension expert from Tsinghua University, suggests that the sleeping dragon will become a “super ageing society” by 2035, with only two workers to support each retiree. The charts below illustrate the looming problem.

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THE PENSIONS ICEBERG NOBODY WANTS TO SEE

April 24, 2014 | by Remberto Latorre-Artus

On April 11 Puerto Rico’s Supreme Court knocked down an attempt to overhaul the teachers’ pension plan. The overhaul was supposed to fix the island’s growing sovereign debt, so the ruling scuttled the previous efforts to balance the budget. Three days earlier Chicago Mayor Rahm Emanuel had better luck when the state legislature approved a bill to restructure two city pension plans that have been deemed insolvent in less than a decade. However, the measure still has to be signed by Gov. Pat Quinn, who has previously hinted that he would be against a proposal that could include an implicit authorization to raise property taxes to pay down the pension debt.

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POLISH PENSIONS SETBACK – A NEW TRAGEDY OF THE ALLEGED COMMONS

April 2, 2014 | by Remberto Latorre-Artus

On February 3 Polish officials carried out a law passed by parliament last year and seized about zł153 billion (€37 billion) in private pension funds. The slick move, hardly uncommon these days, will reduce Poland’s sovereign debt by roughly 8 percent of GDP and create the illusion of fiscal stability. The policy—which aims at balancing the budget today at the expense of taxpayers tomorrow—is in fact a growing practice around the world. Sadly in Europe it has become daily fare, and herein lies the greatest threat.

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