Tag: national defined contribution pensions

Cheerful senior man at home looking at his mail

Abstract Over the past decade, a number of countries have adopted a new form of pension system known as “notional defined contribution” (NDC) pensions. Like traditional defined benefit (DB) pensions, NDC pensions operate largely on a pay-as-you-go basis, but base benefits on total lifetime contributions rather than those in a specified number of peak earnings…

Senior woman doing finances at home

Introduction In 1998, the Swedish Parliament passed pension legislation that transformed Sweden’s Social Security system to a Notional Defined Contribution (NDC) plan ¾ that is, a defined contribution plan financed on a pay-as-you-go basis. In addition, the legislature established a second tier of funded benefits. This Issue in Brief describes the evolution of the new…