Publication: Notional Accounts : Notional Defined Contribution Plans as a Pension Reform Strategy
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2005-01
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2012-08-13
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Notional accounts are designed to mimic a defined contribution plan, where the pension depends on contributions and investment returns. (For this reason, they are sometimes called notional, defined-contribution schemes). Pension contributions are tracked in accounts which earn a rate of return. However, in notional accounts, the return that contributions earn is a notional one, set by the government, not the product of investment returns in the markets.
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“World Bank. 2005. Notional Accounts : Notional Defined Contribution Plans as a Pension Reform Strategy. World Bank Pension Reform Primer Series. © World Bank. http://hdl.handle.net/10986/11244 License: CC BY 3.0 IGO.”
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