Administrative Requirements and Prospects for Universal NDCs in Emerging Economies
Many 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...
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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/295681557816113742/Administrative-Requirements-and-Prospects-for-Universal-NDCs-in-Emerging-Economies http://hdl.handle.net/10986/31704 |
| Summary: | Many 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. |
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