Nonfinancial Defined Contribution Pension Schemes in a Changing Pension World : Volume 2. Gender, Politics, and Financial Stability

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collection.link.129
https://openknowledge.worldbank.org/handle/10986/5993
collection.link.133
https://openknowledge.worldbank.org/handle/10986/5998
collection.name.129
Stand alone books
collection.name.133
Chinese PDFs Available
dc.contributor.author
Holzmann, Robert
dc.contributor.author
Palmer, Edward
dc.contributor.author
Robalino, David
dc.contributor.editor
Holzmann, Robert
dc.contributor.editor
Palmer, Palmer
dc.contributor.editor
Robalino, David
dc.date.accessioned
2013-01-29T19:53:59Z
dc.date.available
2013-01-29T19:53:59Z
dc.date.issued
2013
dc.date.lastModified
2021-04-23T14:02:59Z
dc.description.abstract
The concept of nonfinancial (notional) defined contribution (NDC) was born in the early 1990s and implemented from the mid-1990s in a number of countries. This innovative unfunded individual account scheme emerged and created high hopes at a time when the world seemed to have been locked into a stalemate between making piecemeal reforms of ailing traditional pay- as-you-go defined benefit schemes and introducing prefunded financial account schemes. Nonfinancial (notional) defined contribution (NDC) plans are designed to eliminate the work disincentives and nontransparent redistributions of defined benefit (DB) social security schemes without the transition costs and risk shifting that occurs in the context of a switch to a funded defined contribution (DC) scheme. To a large extent, they sweep away the special privileges that, intentionally or inadvertently, accrue to various groups in traditional schemes and pay everyone in accordance with his or her own contributions. However, not surprisingly, these new provisions will have different effects on diverse population subgroups, including men and women. Most of the effects do not stem from explicit gender-specific provisions in the plans, but rather from the interaction of gender-free policies with differing demographic and employment characteristics of men and women. The same policies affect the two genders differently because of the more limited labor force attachment of women as a result of their childbearing and childrearing roles, their lower earnings when they do work, their longer life expectancy, and the likelihood that they will eventually become widows and live alone in very old age. Both financial defined contribution (FDC) and NDC plans make certain design choices explicit that are implicit in DB plans. Although this feature allows for more informed decision making, it can also be politically sensitive and divisive. In some cases, the decision process is simpler for NDC plans than for FDC plans. NDC plans do not have individual investments and, therefore, do not have the problems that FDCs face and that stem from decentralized investment decisions.
en
dc.identifier
http://documents.worldbank.org/curated/en/2012/01/16988689/nonfinancial-defined-contribution-pension-schemes-changing-pension-world
dc.identifier.isbn
978-0-8213-9478-6
dc.identifier.uri
http://hdl.handle.net/10986/12212
dc.language
English
dc.language.iso
en_US
dc.publisher
Washington, DC: World Bank
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
Actuarial evaluation
dc.subject
Contribution asset
dc.subject
Gender
dc.subject
Individual accounts
dc.subject
Legacy costs
dc.subject
Liquidity
dc.subject
Longevity
dc.subject
Pay-as-you-go
dc.subject
Political economy of pension reforms
dc.subject
Solvency
dc.subject
Pension reform
dc.title
Nonfinancial Defined Contribution Pension Schemes in a Changing Pension World : Volume 2. Gender, Politics, and Financial Stability
en
okr.date.disclosure
2012-11-21
okr.doctype
Publications & Research :: Publication
okr.doctype
Publications & Research :: Publication
okr.docurl
http://documents.worldbank.org/curated/en/2012/01/16988689/nonfinancial-defined-contribution-pension-schemes-changing-pension-world
okr.globalpractice
Social Protection and Labor
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/978-0-8213-9478-6
okr.identifier.externaldocumentum
000356161_20121122044900
okr.identifier.internaldocumentum
16988689
okr.identifier.report
73821
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/11/22/000356161_20121122044900/Rendered/PDF/NonAsciiFileName0.pdf
en
okr.peerreview
Academic Peer Review
okr.topic
Social Protections and Labor :: Pensions & Retirement Systems
okr.unit
Social Protection Team (HDNSP)
okr.volume
1 of 1

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