The future of Private and Public pension provision in the next five Essay

The future of Private and Public bounty provision in the next five years in Mauritius - Essay ExamplePension clay is Mauritius was established in the early 1950s, non-contributory pensions are now received by the majority of the residents aged over 60 (Willmore, 2003, Vittas, 2003). Since 1974 pension coverage in the country has been universal, i.e. there is a fixed division into quartet age groups (60-74 years old 75-85 86-99 and 100+, due to overall longevity in the state). The average basic universal pension is about 57 USD (Bailey, 2004, Gopee, 2006).In Mauritius, non-occupational pension consists of several components, such as radical Retirement Pension, the National Pensions Fund and the Civil Service Pension Scheme and is regulated by dependable legal solid ground (Philip, 1995). Non-occupational pension schemes include basic retirement pension, financed from general taxes, and its current ratio constitutes 3 per cent of annual GDP, but an estimated ratio for 2020 is 6 per cent (GAD, 2001a), due to the ageing trends in race structure. National Pensions Fund is also a part of non-occupational pension provision, as the NPF is an obligatory model which takes into card all private sector organizations employees, excepting those who gain very low wages and some workers involved into scrawl industry. Compulsory contributions constituting about 3-9 per cent of overall earnings result in the accumulation of points on the basis of the declared cost of a point for the certain period (Willmore, 2003). National Savings Fund is a third component of non-occupational pension provision and requires of participants certain contributions (2-3 per cent of income) on the mandatory basis (Mauritius Modernizing and innovative Pension System, 2004). The NSF funds are normally invested into government security, thus the resources themselves are not accumulated, but washed-out immediately after the employees contribution. The other universal social aids and assistan ces under the NPSs certificate of indebtedness include 1)