| Phased out. |
Reformed. |
Reformed |
| Current pensioners: unaltered entitlements. Transition pensioners: retain option to retire under old terms. New workers: new plan |
Those older than 40 can switch to FF. Younger than 40 are compulsorily covered by the FF system |
| Fully funded, individual capitalization. Privately managed Administradoras de Fondos de Ahorro para el Retiro (AFOREs) but publicly regulated and supervised. |
Dual system. Choice between the public, partially funded public PAYG (scaled premium) and the fully funded privately administered (AFP), publicly supervised, individual capitalization. |
Mixed. Public PAYG system offers basic pension (BP). Fully funded, privately managed (AFAP), individual capitalization system offers a complementary pension (CP) |
| 65 for both males and females |
65 for both males and females |
60, for both males and females advanced age ret. at 70 |
| 1250 weeks for minimum pension |
20 years |
35 years |
| 15 years for the advanced age pension |
| No, all workers entering labour force after 1 Jan 97 are covered by the new system, |
Yes, fishermen, stevedores and employees not covered under the national pension system. |
Yes, bank employees, notaries, university graduates, armed forces and police. |
| 6.5%, employee |
Public system: 11 % by employee FF system: 11.6%, by employee |
12.5% by employer (finances the public system) |
| Government pays Mex $l .00 a day (social quota) |
15% by the employee, split between the public and the FF. |
| No |
Yes, if employees switch to FF system |
No |
| New system: AFORE balances (including INFONAVIT sub account). Transition workers also get back their 1993-96 SAR accounts. Phased withdrawals or buy a annuity from insurance company. |
Public system: basic pension: 50% reference salary (average wage final previous 3 years), plus 4% per year beyond a minimum of 20 years. FF system: balances at the AFP, phased withdrawals or annuity (bought from insurance company) |
Public system: BP is 50% of average earnings previous 10 years, Increases with longer working life. FF: contributions made and interests accrued. |
| Minimum pension equals to 1 MW, as of 1 Jan. 1997, indexed to the CPI, Requires a minimum contribution of 1 , 250 weeks. No guaranteed minimum rate of return |
Public system: Yes? FF system: The original decree did not foresee a minimum guaranteed pension. Later changed by the July 95 legislation Any other guarantee? (CHECK). |
Minimum pension under the public system equals to 1 MW No minimum pension guarantee in the private system. |
| No, Transition workers can choose benefits. |
Yes, “bonos de reconocimiento”. Price indexed but no interest. Requires 4 years of contribution during the period 1982-92. |
Those who shift get 75% of the pension they would have been entitled under the PAYG system (check, ML did not mention any). |
| No investment in foreign securities is allowed. Early retirement at 60 if unemployed |
|
The state pays a social assistance pension for the old poor aged 70 and over. AFAPs can be operated by public agencies. |
