This paper addresses two policy questions with respect to public defined benefit (DB) pension schemes: Firstly, does a funded DB pension scheme increase welfare? In other words: do the gains from intergenerational sharing of capital market risks outweigh the labour market distortions from...

This paper explores possible alternatives for the current Dutch first pillar pension scheme (AOW). It presents the welfare, labour market, saving and unintended bequest effects of a shift from a Beveridge towards a Bismarck system in which the pension rights depend on the labour market history....

Privatization of public pension schemes, partial or complete, is on the political agenda in many countries. In the Netherlands, the discussion focuses on second-pillar pension schemes. Although these schemes are funded, they feature intergenerational risk sharing. This paper documents the...