Should Public Pensions be Funded?

Author/Editor:

Richard Hemming

Publication Date:

March 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper outlines some of the arguments for and against the funding of public pensions, with a view to establishing whether there is an economic basis for judging funding to be superior to pay-as-you-go (PAYG). It is argued that funding does not have a clear advantage, and the case for a shift from PAYG to funding is thus an uneasy one. There is nonetheless growing advocacy of funded public pensions as part of an ideal pension system, which raises more general issues about the role of the public sector in pension provision.

Series:

Working Paper No. 1998/035

Subject:

Aging Economic sectors Expenditure Labor Pension reform Pension spending Pensions Population and demographics Public sector

English

Publication Date:

March 1, 1998

ISBN/ISSN:

9781451845327/1018-5941

Stock No:

WPIEA0351998

Pages:

35

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