The Greek Pension Reforms : Crises and NDC Attempts Awaiting Completion

Nektarios, Milton ; Tinios, Platon

World Bank, Washington, DC

关键词: PENSION REFORM;    PAY-AS-YOU-GO;    DEFINED BENEFIT;    NOTIONALLY DEFINED CONTRIBUTION;    FINANCIAL DEFINED CONTRIBUTION;   

RP-ID  :  136547

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Greece’s current pension system reliesalmost exclusively on the state and remains staunchlypay-as-you-go (PAYG) and defined benefit (DB). This paperoffers a radical proposal for change: (i) a new multi-pillarnotional and financial defined contribution (NDC and FDC)pension system for all generations first insured after 1993,with contribution rates for primary pensions reduced by 50percent; and (ii) a transitional system for those firstinsured before 1993. The proposal’s robustness is testedactuarially for the period up to 2060. Though financing thelegacy cost would be challenging, the quantitative exerciseindicates that a radical pension reform, especially ifimplemented as a part of an overall recovery package, couldset the country on a more favorable growth trajectory.