Public Provision of Pensions: The Doug Purvis Memorial Lecture

Peter Diamond

Canadian Public Policy, 1996, vol. 22, issue 1, 1-6

Abstract: Public provision of pensions to the general population comes in a variety of forms. Systems designed around a benefit formula and systems designed around a contribution rate differ in their economic implications and differ in their political settings. Canada has a defined benefit system with fallback automatic adjustment of tax rates. This paper contrasts the Canadian system with the Chilean (privatized) defined contribution system which has received a great deal of attention worldwide. The paper discusses three approaches to cutting benefits if the currently anticipated tax increase is larger than is desired.

Date: 1996
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