Introduction: Legitimacy and Competition in the Pension Fund Industry

Abstract

Although the analysis of the welfare and economic efficiency effects of the entry of non-profit pension fund administrators (AFPs) is clear and precise, the legitimizing effect of allowing members of a mandatory system to opt for non-profit entities to manage their retirement funds should not be underestimated. Legitimacy is not merely a political question: it also affects workers' participation and saving decisions.

Growing social and political pressure lends urgency to the need for reform of the pension system. The importance of the issue and its long-term implications nevertheless merit the benefit of an unhurried academic discussion, such as that presented by the four authors in this issue.