ABSTRACT
The new individual capitalization pension schemes introduced by pension reform have successfully established themselves, and pension reform has set in place the foundations on which these will develop into the future. The early experience of pension reform in Chile has created high expectations as to the rapid growth and development of the new pension schemes. The provision of government guarantees applying to pension funds’ performance and solvency, and to pension benefits, was crucial in securing public confidence in the new pension scheme. The implementation of pension reform in Latin America has underlined some important weaknesses in the reformed pension systems, and in the new individual capitalization pension plans. A different set of problems beset countries like Argentina and Uruguay where first pillar public pension schemes must be accommodated with second pillar capitalization pension schemes. The implementation of pension reform has also thrown into relief some important weaknesses of the new pension schemes.
