Publication: Progress and Challenges of Nonfinancial Defined Contribution Pension Schemes: Volume 1. Addressing Marginalization, Polarization, and the Labor Market
Date
2020
ISSN
Published
2020
Author(s)
Abstract
This is the third publication to analyze progress, challenges, and adjustment options of this reform revolution for mandated public pension schemes. The individual account-based but
unfunded approach that promises fair and financially sustainable benefits is a reform
benchmark for all pension schemes. Nonfinancial defined contribution (NDC) schemes
originated in the 1990s independently in Italy and Sweden, were then adopted by Latvia,
Poland, and Norway, envisaged but not implemented in various other countries (such as Egypt
and Russia), and remain under discussion in many countries across the world (such as China
and France). In its complete form, the approach also comprises budget-financed basic income
provisions and mandated or voluntary funded provisions.
Volume 1 offers an assessment of early reform countries before addressing key aspects of
policy implementation and design review, including: how to best combine basic income
provisions with NDC; how to deal with heterogeneity in longevity; and how to adjust NDC
design and labor market policies to deliver on reform expectations. Volume 2 addresses a
second set of important issues, including: the gender pension gap and what family policies
can do within the NDC frame; the administrative challenges of NDCs and how countries are
coping; the role of communication in NDCs; and the complexity of cross-border pension
taxation, and much more.
Citation
“Holzmann, Robert; Palmer, Edward; Palacios, Robert; Sacchi, Stefano. 2020. Progress and Challenges of Nonfinancial Defined Contribution Pension Schemes; Progress and Challenges of Nonfinancial Defined Contribution Pension Schemes: Volume 1. Addressing Marginalization, Polarization, and the Labor Market : Volume 1. Addressing Marginalization, Polarization, and the Labor Market. © Washington, DC: World Bank. http://openknowledge.worldbank.org/handle/10986/32438?show=full License: CC BY 3.0 IGO.”