The Greek Pension Reforms : Crises and NDC Attempts Awaiting Completion
Greece’s current pension system relies almost exclusively on the state and remains staunchly pay-as-you-go (PAYG) and defined benefit (DB). This paper offers a radical proposal for change: (i) a new multi-pillar notional and financial defined contr...
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| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/572351556878896140/The-Greek-Pension-Reforms-Crises-and-NDC-Attempts-Awaiting-Completion http://hdl.handle.net/10986/31630 |
| Summary: | Greece’s current pension system relies
almost exclusively on the state and remains staunchly
pay-as-you-go (PAYG) and defined benefit (DB). This paper
offers a radical proposal for change: (i) a new multi-pillar
notional and financial defined contribution (NDC and FDC)
pension system for all generations first insured after 1993,
with contribution rates for primary pensions reduced by 50
percent; and (ii) a transitional system for those first
insured before 1993. The proposal’s robustness is tested
actuarially for the period up to 2060. Though financing the
legacy cost would be challenging, the quantitative exercise
indicates that a radical pension reform, especially if
implemented as a part of an overall recovery package, could
set the country on a more favorable growth trajectory. |
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