Descriptive and explanatory study of the replacement rate of remuneration applied to workers of a state university in the V Region.

Abstract

The following article has two aims; the first one is to explain the relationship between the replacement rate and the retirement pensions, taking into account the quality of them in different pension arrangements of the old and new retirement systems. It explains the concept of replacement rate and the factors which influence on it, and it also describes the concept of quality of a pension according to international recommendations. The second objective is to analyze the replacement rates of the pensions obtained by the retirees considered in this study; by examining the amounts received by them in the old retirement system and the AFP and in that way contrast both amounts. The result of the analysis indicates that the replacement rates of remuneration which come from the individual capitalization system are notoriously lower when comparing them with their initial projection, and to those given by the pay go pension system.