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For one thing, they've chosen a bothersome capitalization scheme.
20 In the benchmark calibration, I consider the replacement rate in the case of an individual capitalization scheme; here, I consider the replacement rate of PAYG.
The second pillar was financed by employees' contributions (11% of gross taxable income), which financed the PAYG or individual capitalization scheme (Rofman 2000).
The peronist administration implemented a large set of structural reforms including deregulation, liberalization of trade and of capital markets, privatization of large state-owned enterprises, the demise of a pay-as-you-go pension system in favor of an individual capitalization scheme, and several other market-oriented reforms.
So is the weird capitalization scheme.
Similar(55)
Note that we substantially cleaned up some of the posts, editing out odd capitalization schemes, iffy grammar and plain incoherence.
Argentina and Chile have reformed their pension schemes from a pay-as- you-go system to a capitalization system, meaning the unfunded liability is made an explicit part of the national debt.
Hence it is argued that the pay-as-you-go method of pension contribution should be replaced by the capitalization method used in early pension schemes and in the private sector.
The first scheme in Germany, enacted in 1889 and based on capitalization, covered most employed persons with earnings up to a specified level.
Random capitalization?
The capitalization: $10 million.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com