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| 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  [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 | |
| 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 |
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