Anapp: Pension contributions to jump 47% in 2005

Brazil's private pension association, the Anapp, expects contributions from private pension plans to jump 47% next year to 25bn reais (US$9.31bn) compared to this year, local financial daily Gazeta Mercantil quoted Anapp chairman Osvaldo do Nascimento as saying. The upbeat forecast is based on the Brazilian public's growing concern over the ailing pension systems run by the government. It is also due to the pension industry's efforts to educate the public and create plans that suit different groups of the population, Nascimento said. The Anapp chair also praised the Brazilian congress for approving new tax rules this month that will make private pension plans even more attractive as a long-term savings alternative next year. Pension contributions grew 31.1% during the 10 first months this year and Anapp expects to close the year with 17bn reais in contribution. Nascimento also said he forecasts total pension reserves to jump to 100bn reais in 2005 from the estimated 60bn reais for this year.