NAGIOS: RODERIC FUNCIONANDO

Notional defined contribution pension schemes: Why does only Sweden distribute the survivor dividend?

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	Vidal Meliá, Carlos; Boado Penas, Mª del Carmen; Navarro Cabo, Francisco
	This document is a artículoDate2015
	Este documento está disponible también en : http://hdl.handle.net/10550/53569
	The aim of this paper is to analyse the role of the survivor dividend in notional defined contribution (NDC) pension schemes. At present, this feature can only be found in the Swedish defined contribution scheme. We develop a model that endorses the idea that the survivor dividend has a strong basis for enabling the NDC scheme to achieve financial equilibrium and that not including the dividend is a non-transparent way of compensating for increases in longevity and/or legacy costs from old pension systems. We also find that the average effect of the dividend remains unchanged for any constant annual rate of population growth, that contribu-tors who reach retirement age always get a higher return than the scheme does, and that population growth enables cohorts with more years of contributions to benefit to a greater extent from the dividend effect.
	Vidal Meliá, Carlos Boado Penas, Mª del Carmen Navarro Cabo, Francisco 2015 Notional defined contribution pension schemes: Why does only Sweden distribute the survivor dividend? Journal Of Economic Policy Reform