Cheerful senior man at home looking at his mail

The Notional Defined Contribution Model: An Assessment of the Strengths and Limitations of a New Approach to Provision of Old Age Security

Working Paper by John B. Williamson and Matthew Williams

October 1, 2003

Abstract Most public old-age pension schemes around the world are based at least in part on the pay-as-you-go defined benefit (PAYGO DB) model. As these schemes have matured and the limitations of this approach have become more salient, pension experts have begun considering alternative models. The Notional Defined Contribution (NDC) model, which is also financed…

Simulating the Distributional Consequences of Personal Accounts: Sensitivity to Annuitization Option

Working Paper by Cori E. Uccello, Melissa M. Favreault, Karen E. Smith, and Lawrence H. Thompson

October 1, 2003

Abstract Recent Social Security reform efforts focus predominantly on the establishment of personal retirement accounts either to supplement or partially replace the current Social Security program. An important issue related to these personal accounts is whether they will redistribute income and how any redistribution compares to that under the current Social Security system. The answer…

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