These are contributory pension schemes, administered by the state, which provide earnings-related benefits for formal sector workers (contributors). These systems may involve some type of intra-generational redistribution (for instance, when they include progressive replacement rates or minimum benefits) but their main purpose is consumption smoothing (section 4). Defined contribution systems are also aimed at consumption smoothing, but with stronger links between contributions and benefits. These systems by definition exclude redistributive elements (which can instead be incorporated in other'piliars’in multipillar systems) and make entitlements closely reflect work, earnings and retirement patterns.