Developing Coherent Pension Systems : Design Issues for Private Pension Supplements to NDC Schemes

Price, William

World Bank, Washington, DC

关键词: PENSION REFORM;    PENSIONS;    RETIREMENT INCOME;    BOND MARKET;    EQUITY MARKET;   

RP-ID  :  136538

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper reviews the design of privatepensions alongside a notional defined contribution (NDC) –or public – component. A mix of public and private pensionsis the bestway to deliver a strong combination of five coreoutcomes: coverage, adequacy,sustainability, efficiency, andsecurity. Choices for market structure, benefittype,contributions, and investment strategy can be guided bytheir impact on these outcomes.The clarity of an NDC formulaallows the joint distribution of public and private pensionstobe modeled which can be crucial for optimal investmentstrategies given, for example, thenegative correlationbetween real per capita gross domestic product growth andequity markets over long periods. NDC payout formulas havebroad applications where annuity markets are weak.