The Politics of NDC Pension Scheme Diffusion : Constraints and Drivers

Guardiancich, Igor ; Weaver, R. Kent ; Demarco, Gustavo ; Dorfman, Mark C.

World Bank, Washington, DC

关键词: PENSIONS;    NONFINANCIAL DEFINED CONTRIBUTIONS;    PENSION REFORM;    POLICY REVERSAL;   

RP-ID  :  136556

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Nonfinancial defined contribution (NDC)schemes offer governments desirable properties in terms ofefficiency, fairness, and financial sustainability and anopportunity to deflect the blame for pension cuts. Yetadoptions of NDC schemes largely ground to a halt andseveral countries retreated from NDC implementation afterlegislation. Lack of support from powerful internationalactors is partly to blame, as is the perceived rigidity ofNDC in reducing room for policy maneuver. Correctimplementation requires substantial administrative capacity.Less demanding automatic stabilizing mechanisms undercut theappeal of NDC in the European Union. Thus, while being animportant option for policy makers and a benchmark againstwhich to measure alternative reforms, NDC is unlikely tobecome the dominant pension design choice anytime soon.