Designing Retirement-Income-Security Arrangements: Theory Issues and Applications to Sri Lanka




The IPS Publication is available for sale from the IPS premises at No. 100/20, Independence Avenue, Colombo 07 (Tel: +94-11-2143107, +94-11-2143100), and bookshops island-wide. For more details, contact the IPS Publications Unit.



Published Year

February 2000


US$ 15

This paper is intended as a manual for policy makers on the theoretical framework and design of formal retirement-income-security arrangements. It looks at the purposes and methods of providing income security for the elderly through formal arrangements. It explains the elements of designing an income security arrangement and examines the implications of different rules and methods of collecting contributions, making payments and managing retirement income security arrangements.

Several issues have arisen in the current international debate with regard to the “reform” of income security arrangements, especially (but not only) because of demographic ageing. These issues (on the methods of funding, benefit calculations and management) are described and discussed in both their practical and theoretical contexts. The paper also develops a matrix for categorising the functional impacts of income-security arrangements and evaluates different forms of income security design in terms of their functional strengths and weaknesses.

The last section derives applications to the income security arrangements in Sri Lanka. It related the theoretical understanding with historical developments and political realities in identifying specific policy options to improve the adequacy, coverage, efficiency and sustainability of retirement income arrangements in the Sri Lankan context.

Table of Contents:

•    Introduction
•    Theoretical Framework
•    Issues of Transition and Reform
•    Applications to Sri Lanka
•    Conclusion
•    References


by Nishan C. De Mel