With a commitment to strengthen women’s participation, promote the employability of older adults Y generate incentives so that the population over 65 years of age can contribute longer and at the same time be equally employable, concluded the XIX international seminar of the International Federation of Pension Fund Administrators (FIAP).
The event with relevant reflections on pension systems around the world, organized together with the Dominican Association of Pension Fund Administrators (ADAFP) called “Challenges and solutions for pensions today and tomorrow” It ended with important proposals and reflections with the participation of 20 countries. It was held in Barceló Bávaro hotels.
During the final session, which took place last weekend, prominent international experts spoke, including Pablo Antolín, head of the OECD’s private pension unit, who stated that “the majority of OECD countries in the last two decades have introduced and strengthened capitalization, it is one of the essential components to finance individual pensions, especially in the future”.
Bernardo González, president of the Mexican Association of Retirement Fund Administrators (AC, AMAFORE), highlighted that “with the pension reform, from 2021, there are better pensions for more workers in Mexico. The weeks required to have access to a severance pension in advanced age and old age were reduced.
The purpose of the meeting was to analyze the challenges facing pension systems due to the increasing longevity of the population, the informality of labor markets and the particular situation of women.
Waldo Tapia, a leading labor market specialist and pension coordinator at the IDB, pointed out that “just as we must strengthen the participation of women We must also favor the employability of older adults. Incentives must be generated so that the population over 65 years of age can contribute for longer and, at the same time, be equally employable”.
Regarding the gaps between men and women in terms of pensions, he argued that “the gap in the labor market generates the gap in the pension system. In terms of coverage, only 36% of women have access to a contributory pension, which is equivalent to a gap of between 8 and 10 percentage points with respect to men”.
During the opening day, they also spoke; Guillermo Arthur, president of the International Federation of Pension Fund Administrators (FIAP) and Kirsis Jáquez, executive president of the Dominican Association of Pension Fund Administrators (ADAFP).
Arthur highlighted that “one of the main merits of individual capitalization was to provide sustainability to pension systemsthat, for demographic reasons, pay-as-you-go mechanisms had been lost” and added that by 2022, the 46 countries that previously had pay-as-you-go systems have incorporated individual capitalization mechanisms into pension systems, while in 1997 the figure was just 17.
While the executive president of the ADAFP, Kirsis Jáquez, stated that, looking to the future, the first step taken by the pension fund management sector is to analyze in depth the challenges of the pension systems because only then can we focus on what matters most, which are the solutions so that workers have more and better pensions.
The best
In the second and third blocks of this session, the balance and improvements required by the Dominican pension system were analyzed in light of its 21 years of operation, and the role of pension funds in the Dominican stock market, respectively.
Guillermo Arthur, president of FIAP, pointed out that one of the challenges that individual capitalization systems will face will be “adjusting the contribution rate, bringing it closer to the OECD countries as Mexico did; update the retirement age according to life expectancies, hopefully automatically; develop more incentives for voluntary pension savings, such as tax incentives, greater liquidity and automatic enrollment”.
In his closing remarks, he reflected on the importance that pension funds have had in obtaining palpable social benefits for all workers, in a virtuous circle, an example of which is the experience of the Dominican Republic.
It should be noted that the second day included the participation of prominent personalities, including the economist Xavier Sala i Martín, professor at Columbia University, who opened the day with a private presentation on “The great challenges of pension systems” .
the vice president
At the start of the event, the Vice President of the Republic Raquel Peña defended the need for a pension system that ensures that every worker has a decent pension and guaranteed at the time of his retirement by ensuring that the government, on the instructions of President Luís Abinader, pursues that purpose.
He indicated that the main objective of the pension systems in our countries is the protection of citizens, based on worker’s compensation, which in turn improves the economy of our countries.
He stated that a pension reform so that the worker can have better results in his working life is a priority and where the policies of our countries should be directed.
He stressed that: “in the case of the Dominican Republic, President Luis Abinader has raised the need for our pension system to seek a dignified and guaranteed way of living.”
The Vice President of the Republic stated that she advocates for an individual training system that ensures that every worker has a pension that takes into account the improvements in wages during his life, so that the time of his retirement.
He referred to the importance of a pension reform in order to achieve improvements for the worker and be able to have better results.
“The main objective of pension systems is the protection of our citizens, a decent pension and that these in turn achieve improvements in the economy of our countries,” he stated.
Dominican system
During her speech at the opening of the seminar, Vice President Raquel Cuevas referred to the fact that an important segment of the population is unaware of the subject, so we have an information challenge, what are the AFPs?, the need for more affiliates and more Allies, precisely now that the establishment of the Pension System in our country is 21 years old.
“This pension system must give us security in the face of vulnerability in our lives, given that Law 8701 that creates the Dominican social security system, we must invest it properly, so that it can represent true protection for those who contributed in their years of retirement. worked.
The Vice President of the Republic said that at this time, in which our countries have experienced a series of changes, events such as this seminar where these challenges and solutions for today and tomorrow are analyzed, are beneficial since the AFP Administrators themselves based in the interest of the United Nations analyze the statistics that highlight the rapid aging in our region, which will soon become the oldest population in the world.
The plans
Peña cited the FIAP report, indicating that we should sit down for pay-as-you-go pensions and that the contribution rates be those necessary to be able to pay sufficient pensions to workers.
He congratulated FIAP and ADAFP, for analyzing new and better reforms to serve the people, and the opportunity to embrace each other and be together, after the peak of the pandemic, predicting the greatest success in this two-day event, from which he said he expected solutions, and social mechanisms, to achieve greater dignity for working and enterprising people.
the seminar
The XIX International Seminar (FIAP), organized jointly by the Dominican Association of Pension Fund Administrators (ADAFP) and the International Federation of Pension Fund Administrators (FIAP) addressed important aspects related to the pension systems of our countries .
The ADAFP and FIAP are based on analyzes of the challenges faced by pension systems due to the increasing longevity of women’s situation, as well as on the investment of these resources, return-risk management, impact on savings and investment economic profitability and social profitability.
The topics are in charge of national and foreign experts with the assistance of representatives of Dominican entities related to the pension regime and the Dominican Social Security System, and there is much expectation in the effects on inflation levels that are around 9 Annual %, similar to what happened in 200.