Pensions in a Globalizing World : How Do (N)DC and (N)DB Schemes Fare and Compare on Portability and Taxation?
Pensions 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 re...
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| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/567371556882321266/Pensions-in-a-Globalizing-World-How-Do-N-DC-and-N-DB-Schemes-Fare-and-Compare-on-Portability-and-Taxation http://hdl.handle.net/10986/31639 |
| Summary: | Pensions 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. |
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