Rapporti tecnici
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In questa collezione sono inclusi i Policy Brief dell’INAPP ed i Working Paper che offrono spunti di riflessione, tratti dai temi di ricerca e d’analisi realizzati dall’Istituto a supporto delle politiche pubbliche.
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Browsing Rapporti tecnici by Subject "Analisi delle politiche"
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- The ABCs of NDCs(2019-07-22) Holzmann, RobertNonfinancial defined contribution (NDC) pension schemes have been successfully implemented since the mid-1990s in a number of European countries (Sweden. Italy, Latvia, Poland, and Norway). The NDC approach features the lifelong contribution–benefit link of a financial defined contribution scheme, but is based on the pay-as-you-go format. An NDC approach implemented by the rulebook can manage the economic and demographic risks inherent to a pension scheme and by design creates financial sustainability. This paper offers a nontechnical introduction to NDC schemes, their basic elements and advantages over nonfinancial defined benefit schemes, the key technical frontiers of the approach, and the experiences of countries with NDC schemes.
- Administrative requirements and prospects for universal NDCs in emerging economies(2019-08-03) Palacios, RobertMany public policies are impossible to implement without adequate administrative systems in place. This is true for modern pension schemes and in particular, notional defined contribution (NDC) schemes. Today these systems must be digital yet most pension systems predate computerization and must find a way to bridge past and present. The shift from defined benefit (DB) to NDC brings particular challenges in recordkeeping. This paper briefly reviews the administrative requirements of NDCs and offers a simple checklist for countries considering this type of reform. The last section describes a universal NDC scheme that harnesses the modern digital infrastructure that may allow developing countries to overcome the limitations of traditional contributory systems and their reliance on payroll taxes.
- Communicating NEST pensions for “New” DC savers in the United Kingdom(2019-08-06) Sandbrook, Will; Ravi-Burslem, RanilaAll UK employers now offer a pension scheme including the use of automatic enrollment. More than 9 million people have started saving into a workplace pension as a consequence. NEST is a pension scheme that any employer can use to meet its auto enrollment obligations. It was set up to serve those traditionally poorly served by commercial pension provision. NEST is built around features tested and seen as important and motivating for potential members and employers, underpinned by extensive research with future members and analysis of feedback from existing customers. The communications approach had a major focus on providing reassurance that saving is a “good” thing and NEST will look after one’s money.
- NDC schemes and heterogeneity in longevity: proposals for redesign(2019-07-27) Holzmann, Robert; Alonso-Garcia, Jennifer; Labit-Hardy, Heloise; Villegas, Andres M.A positive relationship between lifetime income and life expectancy leads to a redistribution mechanism when the average cohort life expectancy is applied for annuity calculation. Such a distortion puts into doubt the main features of the NDC (nonfinancial defined contribution) scheme and calls for alternative designs to compensate for the heterogeneity. This paper explores five key mechanisms of compensation: individualized annuities; individualized contribution rates; a two-tier contribution structure with socialized and individual rates; and two supplementary two-tier approaches to deal with the income distribution tails. Using unique American and British data, the analysis indicates that both individualized annuities and two-tier contribution schemes are feasible and effective and thus promising policy options. A de-pooling by gender will be required, however.
- NDC schemes and the labor market: issues and options(2019-07-28) Holzmann, Robert; Robalino, David; Hernan, WinklerDefined contribution (DC) schemes – whether unfunded or funded – are often considered superior to defined benefit (DB) schemes in their ability to address labor market issues, particular in encouraging formal employment and delayed retirement. Conceptually, the assessment is based on superior incentives to work and save. Yet economic and social realities are more complex. This paper explores design and labor market conditions that potentially constrain DC schemes. The paper concludes that to achieve their conceptual potential, DC schemes require design innovations, including a better integration of basic provisions and complementary labor policies that promote job creation in the formal sector and expand job opportunities during old age.
- NDC: the generic old-age pension scheme(2019-07-21) Gora, Marek; Palmer, EdwardThis paper defines a universal public pension scheme (UPPS) as a government-mandated lifecycle longevity insurance scheme that transfers individual consumption from the working years to retirement. It discusses the differences in four UPPS designs designated as either defined contribution (DC) or defined benefit (DB), and financial or nonfinancial. With individual DC accounts, the ball is in the individual’s court. The transparent link between contributions and retirement income is the enabler of efficiency that – through marginal decisions to choose formal work over informal work or leisure and to postpone retirement marginally toward the end of the working life – supports affordability and sustainability for a chosen level of adequacy. Hence, UPPS-DC designs are found superior to UPPS-DB designs.
- Pensions in a globalizing world: how do (N)DC and (N)DB schemes fare and compare on portability and taxation?(2019-08-11) Genser, Bernd; Holzmann, RobertPensions and broader forms of retirement income do not stop at national borders. As part of globalization, individuals increasingly spend part of their working or retirement life abroad but want to keep or move their acquired rights, accumulated retirement assets, or benefits in payment freely across borders. This raises the issue of the portability and taxation of cross-border pensions in accumulation and disbursement. This paper addresses both portability and taxation issues from the angle of which type of pension scheme – defined benefits (DB) or defined contributions (DC) – is more aligned with globalization in establishing individual fairness, fiscal fairness, and bureaucratic efficiency. The paper shows that DC schemes tend to dominate DB schemes both at the level of portability and taxation.
- The politics of NDC pension scheme diffusion: constraints and drivers(2019-08-10) Guardiancich, Igor; Weaver, R. Kent; Demarco, Gustavo; Dorfman, Mark C.Nonfinancial defined contribution (NDC) schemes offer governments desirable properties in terms of efficiency, fairness, and financial sustainability and an opportunity to deflect the blame for pension cuts. Yet adoptions of NDC schemes largely ground to a halt and several countries retreated from NDC implementation after legislation. Lack of support from powerful international actors is partly to blame, as is the perceived rigidity of NDC in reducing room for policy maneuver. Correct implementation requires substantial administrative capacity. Less demanding automatic stabilizing mechanisms undercut the appeal of NDC in the European Union. Thus, while being an important option for policy makers and a benchmark against which to measure alternative reforms, NDC is unlikely to become the dominant pension design choice anytime soon.
- Sweden’s fifteen years of communication efforts(2019-08-08) Boado-Penas, Maria del Carmen; Settergren, Ole; Ekheden, Erland; Naka, PoontavikaIt is desirable that pension reforms and legislated rules have the backing of the population or at least are accepted by voters. With the objective of achieving “acceptance,” the Swedish Pensions Agency publishes an annual actuarial balance of the solvency of the whole public pension system and distributes to each participant information on his or her individual accumulated notional balance and funded accounts, movements during the year, and estimates of the projected individual future pension amount. This paper describes the Swedish pension experience in communication with pension participants over the last decade, together with the main changes in information delivered to improve individuals’ pension knowledge and help them make more informed, better decisions on work, savings, and retirement.