Original scientific paper
https://doi.org/10.1080/1331677X.2020.1782246
Does the pension system’s income statement really matter? A proposal for an NDC scheme with disability and minimum pension benefits
Anne M. Garvey
Manuel Ventura-Marco
Carlos Vidal-Meliá
Abstract
This paper develops an accounting model for monitoring the
solvency of a notional defined contribution (NDC) pension
scheme with disability and minimum pension benefits. Using the
annual report of the Swedish pension system as a benchmark,
the “Swedish” actuarial balance is extended by adding an income
statement fully explaining the reasons behind the changes in the
system’s solvency by type of benefit. In line with the reference
model, assets and liabilities are measured at present value at
each reporting date, and in each period, included as income or
expenses on the Income statement. This accounting framework
integrates both contributory and social aspects of public pensions
and discloses the real cost of the disability contingency and the
redistribution through minimum pensions. Apart from Sweden,
this proposal could be especially interesting for improving the
reporting of public pensions in countries such as Poland, Italy,
Latvia and Norway.
Keywords
Disability insurance; minimum pensions; notional defined contribution; pension accounting; Sweden; true and fair view
Hrčak ID:
301165
URI
Publication date:
31.12.2021.
Visits: 503 *