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NDC: The Generic Old-Age Pension Scheme

Autor: Góra, Marek; Palmer, Edward
Año: 2019
Resumen: This paper defines a universal public pension scheme (UPPS) as a government mandated lifecycle longevity insurance scheme that transfers individual consumption from the working years to retirement. It discusses the differences in four UPPS designs designated as either defined contribution (DC) or defined benefit (DB), and financial or nonfinancial. With individual DC accounts, the ball is in the individual’s court. The transparent link between contributions and retirement income is the enabler of efficiency that through marginal decisions to choose formal work over informal work or leisure and to postpone retirement marginally toward the end of the working life, supports affordability and sustainability for a chosen level of adequacy. Hence, UPPS-DC designs are found superior to UPPS-DB designs.

Fuente: Banco Mundial
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Documentos de Trabajo
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The Swedish NDC Scheme: Success on Track with Room for Reflection

Autor: Könberg, Bo; Palmer, Edward
Año: 2019
Resumen: Sweden’s reform began with a published sketch in 1992 and developed into nonfinancial defined contribution (NDC) legislation in 1994. This paper discusses the underpinnings of the Swedish NDC scheme’s financial stability, factors influencing the adequacy of benefits, and its interplay with other components of the pension system: the public financial defined contribution scheme, the minimum pension guarantee, and the occupational schemes. The paper also includes information on the December 2017 broad six-party political agreement on forthcoming legislation. It concludes with recommendations for additional improvements in the overall old-age pension system, based on the analysis of financial stability, adequacy, and differences in outcomes, and the interaction of the NDC scheme with the guarantee benefits and the occupational schemes.

Fuente: Banco Mundial
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Documentos de Trabajo
Idioma:

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Reform Options for Mature Defined Benefit Pension Plans: The Case of the Netherlands

Autor: Gerard, Marc
Año: 2019
Resumen: The Netherlands has been operating fully funded, defined benefit second pillar pension schemes that have consistently ranked high worldwide for delivering high replacement rates while featuring strong solidarity among members. Yet the long-term sustainability of the Dutch pension funds has been undermined in recent years by protracted low interest rates and unfavorable demographic developments, exacerbating controversies over intergenerational transfer mechanisms within the plans. This has prompted a national debate over ways to move toward more individualization while preserving financial security at retirement for all. This paper draws on this experience, illustrated by stress testing simulations and assessed vis-à-vis solutions implemented in peer countries, to discuss the main policy trade-offs associated with the reform of mature pension systems in advanced economies.

Fuente: Fondo Monetario Internacional (FMI)
Clasificación: Estadísticas de Pensiones
Tipo de Publicación: Documentos de Trabajo
Idioma:

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The Impact of Rapid Aging and Pension Reform on Savings and the Labor Supply: The Case of China

Autor: He, Hui; Ning, Lei; Zhu, Dongming
Año: 2019
Resumen: We study, both empirically and quantitatively, the role of savings and the labor supply in self-insurance channels over the life cycle when one faces not only idiosyncratic income risks, but also changes in longevity risk and pension benefits. We pick China as a case study since China has undergone a dramatic process of rapid aging and a tremendous reduction in social security benefits for the period 1995-2009. We find that both savings and the labor supply are quantitatively important self-insurance channels in responding to changes in longevity risk and pension benefits, and the responses via adjustment to savings and labor supply have significant macroeconomic implications. Applying the model to China, we find that the pension reform and rapid aging together contribute 55 percent of the increase in the household saving rate from 1995 to 2009, and they jointly capture about 64 percent of the drastic increase in the labor supply for the same period.

Fuente: Fondo Monetario Internacional (FMI)
Clasificación: Ahorro Previsional
Tipo de Publicación: Documentos de Trabajo
Idioma:

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The Polish NDC Scheme: Success in the Face of Adversity

Autor: Buchholtz, Sonia; Chłon-Domincza, Agnieszka; Góra, Marek
Año: 2019
Resumen: Poland’s pension system faces multiple challenges, including accelerating population aging. Early retirement policy aimed at mitigating mass exit from the labor market led to the rise of pension system economic dependency. Transition to a nonfinancial and financial defined contribution (NDC plus FDC) system in 1999 mitigated the fiscal risk and an unfair balance of interest between the working and retired generations. The new system separated the income allocation and redistribution. The retirement age was raised. However, the implementation of the new system is a case study of misuse for current political goals, ad hoc tweaks, and unfinished topics. Yet the 1999 pension reform met its goals.

Fuente: Banco Mundial
Clasificación: Seguridad Social y Sistemas de Pensiones
Tipo de Publicación: Documentos de Trabajo
Idioma:

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