The paper inquires into Notional Defined Contribution pension schemes, which retain the pay-as-you-go financing method while adopting the award and indexation formulas typical of funded, defined-contribution systems. It inquires the properties of the new arrangement and compares its theoretical...

In order to spread notional capital accrued at retirement by members of a cohort over life expectancy, pay-as-you-go notional-defined-contribution (payg-ndc) scheme uses multipliers (different by retirement age) called conversion coefficients. These are backward-looking (b.l.) in that they relay...