Legitimacy and Credibility in the Pension Fund System: More than Corporate Governance

Abstract

This article discusses some of the technical solutions proposed for improving pension systems, in particular those focusing on institutional design and the participation of owners. It argues that any viable redesign of the system will need to combine economic efficiency with social legitimacy. In this context, it problematizes the proposal to grant powers to the owners of pension funds as a counterpart to the pension fund administrators. A pension system will be durable to the extent that it is recognized and accepted as lawful and genuine by all actors in our country.