Notional defined contribution systems: theoretical aspects and implications for Spain
DOI:
https://doi.org/10.51302/rtss.2020.884Keywords:
pay as you go system, defined contribution, contributory pensionsAbstract
The work focuses on analyzing the main characteristics of notional defined contribution systems. First, we analyze the main causes that led some countries, such as Sweden, to implement a system of notional defined contribution, such as the need to create a financially sustainable system with the capacity to deal with future demographic and economic changes, which will strengthen the relationship between contributions and benefits, and that will encourage private savings. Next, the differences between the various financial-actuarial financing systems are explained, as well as a series of elements that we consider necessary for a better understanding of the general structure of the pension systems: differences between contributory and non-contributory benefits; funding sources; the nature of the contributions; and the problem of redistributivity. To continue, we focus on the discussion of the main characteristics of individual notional defined contribution systems, emphasizing the main advantages and disadvantages with respect to the current Spanish system. Finally, the quantitative results of the introduction of a system of notional defined contribution in Spain are shown using two methods, the first one is based on data provided by the Continuous Sample of Work Lives and the other is applied to theoretical individuals. The main results show that the introduction of a system of notional defined contribution in Spain would result in an initial pension between 45 % and 85 % of the pension provided by the current system, calculated under the conditions governing in 2014, although it could be somewhat higher than the one calculated after the transitional period of the 2011 reform.
Downloads
References
Betzuén Zalbidegoitia, A. y Blanco Ibarra, F. (1989). Planes y fondos de pensiones. Su cálculo y valoración. Bilbao: Deusto.
Cichon, M. (1999). Notional defined-contribution schemes: Old wine in new bottles? International Social Security Review, 4(52), 87-105.
Devesa Carpio, J. E. y Doménech Vilariño, R. (2019). Sostenibilidad y suficiencia. Las cuentas nocionales como un mecanismo de disciplina. En J. A. Herce San Miguel (Dir.), Pensiones del futuro (pp. 62-79). Madrid: Instituto santalucía.
Devesa Carpio, J. E. y Domínguez Fabián, I. (2013). Sostenibilidad, suficiencia y equidad: más allá del factor de sostenibilidad. En J. A. Herce San Miguel (Dir.), Pensiones: una reforma medular (pp. 125-139). Madrid: Fundación de Estudios Financieros y Círculo de Empresarios.
Devesa Carpio, J. E. y Vidal Meliá, C. (2008). Apuntes del curso «Técnicas de la Seguridad Social» [Documento inédito]. Universidad de Valencia.
Devesa, J. E., Devesa, M., Domínguez, I., Encinas, B. y Meneu, R. (2017a). ¿Es posible mejorar la sostenibilidad financiero-actuarial de la Seguridad Social española? Papeles de Economía, 154, 232-247.
Devesa, J. E., Devesa, M., Domínguez, I., Encinas, B. y Meneu, R. (2017b). La implantación de un sistema de cuentas nocionales en España: efectos sobre el sistema de Seguridad Social. Recuperado de https://goo.gl/yVYyAf
Enríquez de Salamanca Navarro, R. (1986). Combinación óptima de los métodos financieros de un sistema de pensiones. Investigaciones Económicas (Segunda Época), 1(10), 127-140.
Gallego Losada, R. (2014). El límite máximo de las pensiones públicas: generosidad y contributividad. Revista General de Derecho del Trabajo y de la Seguridad Social, 39.
Könberg, B., Palmer, E. y Sunden, A. (2006). The NDC reform in Sweden: The 1994 legislation to the present. En R. Holzmann y E. Palmer (Eds.), Pension reform: Issues and prospects for non-financial defined contribution (NDC) schemes (pp. 449-466). Washington D. C.: The World Bank. Recuperado de https://goo.gl/ssfkpR
Nieto de Alba, U. y Vegas Asensio, J. (1993). Matemática actuarial. Madrid: Mapfre.
Palmer, E. (2000). The Swedish pension reform model: Framework and issues. Recuperado de https://goo.gl/1rGAuH
Palmer, E. (2001). Swedish pension reform: How did it evolve and what does it mean for the future? En M. Feldstein y H. Siebert (Eds.), Social Security pension reform in Europe (pp. 171-210). Chicago: University of Chicago Press. Recuperado de https://goo.gl/uptRS7
Samuelson, P. A. (1958). An exact consumption-loan model of interest with or without the social contrivance of money. The Journal of Political Economy, 6(66), 467-482.
Vidal, C., Domínguez, I. y Devesa, J. E. (2006). Subjective economic risk to beneficiaries in notional defined contribution accounts. The Journal of Risk and Insurance, 3(73), 489-515.
