02308cas a2200253 a 4500 AALejournalIMF019390 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498318525 1018-5941 BD-DhAAL BD-DhAAL Freudenberg, Christoph. Informality and the Challenge of Pension Adequacy : Outlook and Reform Options for Peru / Christoph Freudenberg, Frederik Toscani. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (47 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Past reforms have put the Peruvian pension system on a largely fiscally sustainable path, but the system faces important challenges in providing adequate pension levels for a large share of the population. Using administrative microdata at the affiliate level, we project replacement rates in the defined benefit (DB) and defined contribution (DC) pillars over the next 30 years and simulate the impact of various reform scenarios on the average level and distribution of pensions. In the DB pillar, the regressive minimum contribution period should be re-thought, while in the DC pillar a broadening of the contribution base and/or an increase in contribution rates would help increase replacement rates relative to the baseline forecast of 25-33 percent. A higher net real rate of return than assumed in the baseline would also have a significant positive impact. In the medium-term, labor market reform to tackle informality, and a broad pension reform to restructure the system and avoid competition between the DB and DC pillars should be a priority. Given low pension coverage, having a strong non-contributory pillar will remain important for the foreseeable future. Mode of access: Internet Toscani, Frederik. IMF Working Papers; Working Paper ; No. 2019/149 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/149/001.2019.issue-149-en.xml IMF e-Library