Nonfinancial Defined Contribution Pension Schemes in a Changing Pension World
The concept of nonfinancial (notional) defined contribution (NDC) was born in the early 1990s and implemented from the mid-1990s in a number of countries.
This innovative unfunded individual account scheme emerged and created high hopes at a time when the world seemed to have been locked into a stalemate between making piecemeal reforms of ailing traditional pay-as-you-go defined benefit schemes and introducing prefunded financial account schemes. Ten years after the first countries had implemented NDC, it had become a clear reform alternative for national pension schemes.