Pension Reforms in Mauritius: Fair and Fast—Balancing Social Protection and Fiscal Sustainability

By Mauricio Soto, Vimal V Thakoor, Martin Petri

June 19, 2015

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Mauricio Soto, Vimal V Thakoor, and Martin Petri. Pension Reforms in Mauritius: Fair and Fast—Balancing Social Protection and Fiscal Sustainability, (USA: International Monetary Fund, 2015) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Despite important past reforms, the ageing population of Mauritius threatens the sustainability of its pension system. This paper examines how pension spending might increase without reforms and discusses reforms options. The findings suggest that unifying the retirement age and indexing it to life expectancy would contribute most significantly to secure and sustainable pensions. The poverty reducing objective of the universal pension can be improved by better targeting. The old age protection objective of the National Pension Fund could be strengthened by increasing contribution and replacement rates. Implementing changes faster should result in less drastic future changes and fairer outcomes.

Subject: Aging, Civil service, Expenditure, Labor, Pension spending, Pensions, Population and demographics, Retirement

Keywords: Ageing, Aging, BRP beneficiary, BRP benefit, BRP expenditure, BRP spending, Civil service, CSDB pension expenditure, Fiscal policy, Investment strategy, Mauritius, NPF contribution, Pension reform, Pension spending, Pensions, Present discounted value, Retirement, WP

Publication Details

Pages:

24
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2015/126
Stock No:

WPIEA2015126
ISBN:

9781513568331
ISSN:

1018-5941

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