NDC v. FDC: Pros, Cons and Replication

Blake, David

doi:10.2139/ssrn.1964726

Cited by 2 publications

(2 citation statements)

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“…1 For the discussion of pros and cons of FDC and NDC schemes, see for example Blake (2009). Social safety nets for old-age population and pensioners are organized in different ways -mainly through basic, resource-tested and minimum pension. The level of safety nets in the OECD countries ranges from some 15 % to almost 40% of economy-wide average earnings, with the average of 27 %.…”

Section: Introductionmentioning

confidence: 99%

The minimum pension as an instrument of poverty protection in the defined contribution pension system – an example of Poland*

Chłoń-Domińczak¹,

Strzelecki²

2013

Journal of Pension Economics and Finance

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Section: Introductionmentioning

confidence: 99%

The minimum pension as an instrument of poverty protection in the defined contribution pension system – an example of Poland*

Chłoń-Domińczak¹,

Strzelecki²

2013

Journal of Pension Economics and Finance

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“…Under NDC, the state is the monopoly provider of services and benefits (Blake, 2011). To ensure a sustainable pension supply, the country must provide these benefits stably and cannot change the agreement in the long term.…”

Section: Rural-urban Dual Welfare Modelmentioning

confidence: 99%

Understanding the implementation gap of China’s urban pension scheme at the level of rural-urban migrant workers

Wang¹

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China has recently undergone extensive reforms in its basic urban old-age pension policy, which intends to benefit all urban workers, including internal rural-to-urban migrant workers. In 2011, the Social Security Law, the first comprehensive law of China attempting to remedy social inequality, came into force. China has established pension schemes for both rural and urban workers.All workers employed in urban regions are entitled to the urban pension scheme, which offers pension benefits based on the cost of living in cities. However, implementation of the system and loopholes in the legislation have resulted in very low participation by migrant workers in the basic urban old-age pension scheme. As of the end of 2013, the migrant worker coverage rate of the oldage pension scheme remained less than 20% (NBS, 2014a). This gives rise to the following question: What implementation gaps hinder migrant workers from taking up this old-age scheme?Implementation gaps may occur throughout the entire policy implementation process, in which stakeholders at all levels (including policy makers, bureaucrats and recipients) play a role in the success of the policy. This thesis examined the implementation gap in the urban pension scheme at the bottom level, where rural-urban migrant workers constitute the potential recipients.Conceptualised using Mazmanian and Sabatier's (1983) implementation theory and the theory of bounded rationality, the study focused on factors that influenced migrant workers' intentions to join the urban old-age pension scheme and their perceptions of taking up the scheme.The research adopted a mixed-method approach with quantitative survey and qualitative interview data collected and analysed sequentially.In Phase 1, over 200 migrant workers were surveyed in Shenzhen, China, on their understanding of the urban pension scheme (including their intentions to join) and on factors that might influence their intentions to join (individual, land, settlement, and employment). Bivariate analysis and multiple regression models were used to statistically examine the main factors that influenced migrant workers' intentions to join the scheme. This analysis showed that workers' settlement plans (the likelihood to settle in cities and the decision to go back to their rural iii hometown) and land expropriation experience significantly influenced the intention to participate in the urban pension system. Furthermore, approximately 85% of survey participants did not understand the basics of the urban old-age pension scheme.Phase 2 consisted of semi-structured interviews with 12 migrant workers, which were designed to explore their perceptions of joining the urban old-age pension scheme. Based on preliminary results from the quantitative study, six migrant workers with land expropriation experience and six without were selected from the survey participants. Interview transcripts were subjected to thematic analysis. The rich elaborations in these interviews provided a detailed picture of the processes by which migra...

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NDC v. FDC: Pros, Cons and Replication

Abstract: This paper examines the advantages and disadvantages of non-financial defined contribution (NDC) pension plans relative to financial defined contribution (FDC) pension plans. It also shows how an NDC outcome can be replicated in a FDC framework.

Cited by 2 publications

References 11 publications

The minimum pension as an instrument of poverty protection in the defined contribution pension system – an example of Poland*

The minimum pension as an instrument of poverty protection in the defined contribution pension system – an example of Poland*

Understanding the implementation gap of China’s urban pension scheme at the level of rural-urban migrant workers

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