Publication: The ABCs of NDCs
Date
2019-04
ISSN
Published
2019-04
Author(s)
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.
Citation
“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.”