Todd, Petra
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Publication The Chilean Pension Reform Turns 25: Lessons from the Social Protection Survey(2006-07-01) Behrman, Jere R; de Mesa, Alberto Arenas; Mitchell, Olivia S; Bravo, David; Todd, PetraIn 1980, Chile dramatically reformed its retirement system, replacing what was an old insolvent PAYGO program with a new structure that relies heavily on funded defined contribution individual accounts. In addition, eligibility and benefit requirements were standardized, and a safety net for old-age poverty was strengthened. Twenty-five years after this reform, the Chilean model is being re-assessed, in terms of coverage, contribution, investment, and retirement benefit outcomes. This paper introduces a recently-developed longitudinal survey of individual respondents in Chile, the Social Protection Survey (or Encuesta de Previsión Social, EPS), and illustrates some uses of this survey for microeconomic analysis of key aspects of the Chilean system.