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In classical pension design, there are essentially two kinds of pension schemes: Defined Benefit (DB) and Defined Contribution (DC) plans. Each scheme corresponds to a different philosophy of spreading risk between the stakeholders: in a DB, the main risks are taken by the organizer of the plan,...
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In this chapter, we analyse the effects of PAYG and funded pension systems on welfare. The debate on the choice between … the potential benefits of mixed systems in which a PAYG system with notional accounts is complemented by a funded pensions … system. The main findings are as follows. Firstly, the redistribution of income among individuals makes the PAYG system an …
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The aim of this chapter is to review the main instruments and indicators used to measure the sustainability of PAYG …
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In pay-as-you go pension systems, automatic balancing mechanisms (ABMs) are designed to face adverse demographic and economic changes. In this respect, ABMs can be defined as a set of pre-determined measures established by law to be applied immediately as required according to an indicator that...
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