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

This paper reviews the design of private pensions alongside a notional defined contribution (NDC) – or public – component. A mix of public and private pensions is the bestway to deliver a strong combination of five core outcomes: coverage, adequacy...

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Main Author: Price, William
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/148951556875885451/Developing-Coherent-Pension-Systems-Design-Issues-for-Private-Pension-Supplements-to-NDC-Schemes
http://hdl.handle.net/10986/31644
id okr-10986-31644
recordtype oai_dc
spelling okr-10986-316442021-05-25T09:23:20Z Developing Coherent Pension Systems : Design Issues for Private Pension Supplements to NDC Schemes Price, William PENSION REFORM PENSIONS RETIREMENT INCOME BOND MARKET EQUITY MARKET NOTIONALLY DEFINED CONTRIBUTION PUBLIC PENSIONS ANNUITY MARKET This paper reviews the design of private pensions alongside a notional defined contribution (NDC) – or public – component. A mix of public and private pensions is the bestway to deliver a strong combination of five core outcomes: coverage, adequacy,sustainability, efficiency, and security. Choices for market structure, benefit type,contributions, and investment strategy can be guided by their impact on these outcomes.The clarity of an NDC formula allows the joint distribution of public and private pensions tobe modeled which can be crucial for optimal investment strategies given, for example, thenegative correlation between real per capita gross domestic product growth and equity markets over long periods. NDC payout formulas have broad applications where annuity markets are weak. 2019-05-07T15:30:36Z 2019-05-07T15:30:36Z 2019-04 Working Paper http://documents.worldbank.org/curated/en/148951556875885451/Developing-Coherent-Pension-Systems-Design-Issues-for-Private-Pension-Supplements-to-NDC-Schemes http://hdl.handle.net/10986/31644 English Social Protection and Jobs Discussion Paper,no. 1929; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic PENSION REFORM
PENSIONS
RETIREMENT INCOME
BOND MARKET
EQUITY MARKET
NOTIONALLY DEFINED CONTRIBUTION
PUBLIC PENSIONS
ANNUITY MARKET
spellingShingle PENSION REFORM
PENSIONS
RETIREMENT INCOME
BOND MARKET
EQUITY MARKET
NOTIONALLY DEFINED CONTRIBUTION
PUBLIC PENSIONS
ANNUITY MARKET
Price, William
Developing Coherent Pension Systems : Design Issues for Private Pension Supplements to NDC Schemes
relation Social Protection and Jobs Discussion Paper,no. 1929;
description This paper reviews the design of private pensions alongside a notional defined contribution (NDC) – or public – component. A mix of public and private pensions is the bestway to deliver a strong combination of five core outcomes: coverage, adequacy,sustainability, efficiency, and security. Choices for market structure, benefit type,contributions, and investment strategy can be guided by their impact on these outcomes.The clarity of an NDC formula allows the joint distribution of public and private pensions tobe modeled which can be crucial for optimal investment strategies given, for example, thenegative correlation between real per capita gross domestic product growth and equity markets over long periods. NDC payout formulas have broad applications where annuity markets are weak.
format Working Paper
author Price, William
author_facet Price, William
author_sort Price, William
title Developing Coherent Pension Systems : Design Issues for Private Pension Supplements to NDC Schemes
title_short Developing Coherent Pension Systems : Design Issues for Private Pension Supplements to NDC Schemes
title_full Developing Coherent Pension Systems : Design Issues for Private Pension Supplements to NDC Schemes
title_fullStr Developing Coherent Pension Systems : Design Issues for Private Pension Supplements to NDC Schemes
title_full_unstemmed Developing Coherent Pension Systems : Design Issues for Private Pension Supplements to NDC Schemes
title_sort developing coherent pension systems : design issues for private pension supplements to ndc schemes
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/148951556875885451/Developing-Coherent-Pension-Systems-Design-Issues-for-Private-Pension-Supplements-to-NDC-Schemes
http://hdl.handle.net/10986/31644
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