Publication: The ABCs of NDCs

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2019-04
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2019-04
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Abstract
Nonfinancial defined contribution (NDC) pension schemes have been successfully implemented since the mid-1990s in a number of European countries. The NDC approach features the lifelong contribution–benefit link of a financial defined contribution scheme, but is based on the pay-as-you-go format. An NDC approach implemented by the rulebook can manage the economic and demographic risks inherent to a pension scheme and by design creates financial sustainability. This paper offers a nontechnical introduction to NDC schemes, their basic elements and advantages over nonfinancial defined benefit schemes, the key technical frontiers of the approach, and the experiences of countries with NDC schemes.
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Holzmann, Robert. 2019. The ABCs of NDCs; The ABCs of NDCs. Social Protection and Jobs Discussion Paper,no. 1908;. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/31627 License: CC BY 3.0 IGO.
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