Reference : Conceptualizing, Measuring and Financing the Legacy Costs in an NDC Reform
Scientific journals : Article
Business & economic sciences : Economic systems & public economics
http://hdl.handle.net/2268/116878
Conceptualizing, Measuring and Financing the Legacy Costs in an NDC Reform
English
Jousten, Alain mailto [Université de Liège - ULg > HEC-Ecole de gestion de l'ULg : UER > Théorie monétaire et macroéconomie >]
Holzmann, Robert [> >]
Oct-2012
Journal of Pension Economics & Finance
Cambridge
11
4
606 - 630
Yes (verified by ORBi)
International
1474-7472
[en] pensions ; pay-as-you-go ; notional defined contribution
[en] The paper provides a framework for the conceptualization, definition and measurement of the legacy
costs that needs to be addressed in a reform that transforms an unfunded (or non‐financial) defined
benefit (NDB) scheme into an equally unfunded notional (or non‐financial) defined contribution (NDC)
scheme. During a transition from NDB to NDC a financing gap typically arises due to accrued to date
liabilities from the old system in excess of the NDC scheme’s sustainable flow of benefits. This gap ‐ or
legacy cost ‐ needs to be estimated and financed. We illustrate different techniques to gauge the scope
of the cost. The paper applies the proposed approach to a hypothetical NDC reform in China.
Researchers ; Professionals
http://hdl.handle.net/2268/116878
10.1017/S1474747212000121

File(s) associated to this reference

Fulltext file(s):

FileCommentaryVersionSizeAccess
Restricted access
Conceptualizing Measuring and Financing of Legacy Costs in an NDC Reform____JPEF Accepted_Draft_20120419.pdfAuthor postprint361.89 kBRequest copy

Bookmark and Share SFX Query

All documents in ORBi are protected by a user license.