Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82570
Authors: 
Palmer, Edward
Year of Publication: 
2011
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2011:3
Abstract: 
The Non-financial (Notional) Defined Contribution (NDC) PAYGO pension scheme is a recent innovation and its generic dimensions have not previously been explored in a coherent context. This paper does this. It derives and analyzes the demographic, economic and distributional properties of NDC. The residual (systematic) longevity risk creates a special problem, solved with an NDC bond, the asset that closes the system financially, transferring residual risk to the government (taxpayers). This guarantees a fixed NDC contribution rate and, thus, intergenerational commitment, with transparent distributional policy pursued through targeted transfers from general tax revenues and taxation of overall personal income.
Subjects: 
Pensions
NDC
Notional Defined Contribution
Non-financial Defined Contribution
NDC Bond
Risk sharing
Pension Policy
Pay-as-you-go
PAYG
JEL: 
H55
I38
J14
O23
P16
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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