Notional Accounts : Notional Defined Contribution Plans as a Pension Reform Strategy
Notional accounts are designed to mimic a defined contribution plan, where the pension depends on contributions and investment returns. (For this reason, they are sometimes called notional, defined-contribution schemes). Pension contributions are t...
| Main Author: | |
|---|---|
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2005/01/6323988/notional-accounts-notional-defined-contribution-plans-pension-reform-strategy http://hdl.handle.net/10986/11244 |
| Summary: | Notional accounts are designed to mimic
a defined contribution plan, where the pension depends on
contributions and investment returns. (For this reason, they
are sometimes called notional, defined-contribution
schemes). Pension contributions are tracked in accounts
which earn a rate of return. However, in notional accounts,
the return that contributions earn is a notional one, set by
the government, not the product of investment returns in the markets. |
|---|