1 / 10

Pension Funds and Infrastructure Development

Pension Funds and Infrastructure Development. USAID Pension Reform Project Bulgaria. Latin America: Multipillar Pension System. Multipillar Pension Systems. Mandatory Private Pension Funds. Voluntary Private Pension. Pay as you go. Individual accounts. AFFILIATES/ ADMINISTERED FUNDS.

major
Download Presentation

Pension Funds and Infrastructure Development

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Pension Funds and Infrastructure Development USAID Pension Reform ProjectBulgaria

  2. Latin America: Multipillar Pension System

  3. Multipillar Pension Systems Mandatory Private Pension Funds Voluntary Private Pension Pay as you go Individual accounts

  4. AFFILIATES/ ADMINISTERED FUNDS

  5. Regulations for Pension Fund Investments • OBJECTIVE: That pension funds be invested in instruments capable of providing an adequate PROFITABILITY AND SECURITY to social security resources. • Must provide an adequate legal and tax framework. Social security savings must not pay taxes. • Must provide long-term flexibility. • Must provide development incentives to securities’ market. • Must allow domestic and international investments. • Must only establish maximum investment limits.

  6. Latin America: Annual Need of Investment in Infrastructure

  7. Growth of Pension Assets in Chile(1999-2010) ASSUMPTIONS:Investment return 6% real, 2% annual increase contributions, real annual increase in salaries 2%, amounts in dollars at the exchange rate of March 31, 2000. Source: FIAP, August 2000

  8. Chile: Pension Funds and Infrastructure

  9. - HOUSING AND REAL ESTATE DEVELOPMENT • Mortgage bonds $5.250 bln. • Investment funds $500 bln. (real estate) - INVESTMENT FUNDS $235 (Airport) - INFRASTRUCTURE BONDS $2,178 (High ways) - INFRASTRUCTURE BONDS $995 (Secondary roads) - WATER SUPPLY Privatized companies • Equities $1.823 bln. SOURCE: FIAP, December 1998

  10. Conclusions and Challenges • There is a great need to develop infrastructure in developing countries. • Pension Funds may constitute a source of financing infrastructure. • There is a need to develop the legal framework to allow pension funds to invest in infrastructure. • There is a need to create new financial instruments to channel pension assets in infrastructure.

More Related