The issue of fees in the administration of Latin American pension system, with special reference to the Colombian system

Abstract

New models of pension schemes implemented by the end of the 20th century

are being revised in their fundamental elements, in order to detect the most

significant failures of their dynamics. One element that has been considered

for reform is the structure of fees to be paid by workers to the Pension Fund

Administrators. The assessment of the more efficient commission in relation

to the objectives of the pension system, mainly the generation of sufficient

and adequate pension amount and the expansion of coverage, is made from

the analysis of the most important reforms in this subject which have happened

in Latin America. Among all the commission categories, it was found

that the one based on the worker's wage has advantages over other methods,

in terms of containing costs of the Pension Fund Administrators and providing

social security system coverage