Notional Defined Contribution (NDC) Schemes: a pension system alternative

Gustavo da Costa Morais; Carolina Cardoso Novo; Mirian Picinini Méxas

doi:10.21919/remef.v16i2.524

Authors

Gustavo da Costa Morais Universidade Federal Fluminense, Brazil https://orcid.org/0000-0002-8693-1329
Carolina Cardoso Novo Universidade Federal Fluminense, Brazil https://orcid.org/0000-0002-3186-275X
Mirian Picinini Méxas Universidade Federal Fluminense, Brazil https://orcid.org/0000-0003-4506-7009

DOI:

https://doi.org/10.21919/remef.v16i2.524

Keywords:

notional defined contribution schemes, generic NDC scheme, pension systems

Abstract

This article aims to discuss the main concepts related to notional defined contribution (NDC) schemes and to analyze the experiences of Sweden, Italy, Latvia, Poland and Norway. The methodology is based on a literature review. The main result was that the extent of NDC as a pension system alternative depends on the degree of closeness to the generic scheme. It is recommended to analyze NDC as an alternative for pension system reforms considering its capacity to control structural deficits. As a limitation, it was not analyzed some possible social impacts of NDC introduction. This article is original because encompasses theoretical and practical aspects of NDC schemes. It is expected that this research can contribute to assist public officials in decision-making about reforms in pension systems.