“Exploring options for strengthening pensions for everybody”
Eroding participation in mandatory pension plans and the reduced scope of intergenerational risk sharing are two problems for which a non-financial defined contribution (NDC) system, also known as a notional DC scheme, can provide a solution. This paper explores the possible implementation of several variants of NDC’s. It also discusses other alternative solutions.
Key Takeaways for the Industry
- NDC offers a comprehensive solution for greater pension coverage and more indexation.
- Ensuring a neutral impact across generations in implementing NDC will require long, gradual implementation.
- A combination of measures therefore seems the obvious choice in finding a workable solution.