Interaction of defined benefit pension plans and social security

Pierre Pestieau and Uri Possen
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Uri Possen: Cornell University

No 2008022, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: This paper explores the shift from defined benefit to defined contribution pension plans when the payout rate from social security is set optimally. This paper shows that when employees are receiving more of their private pensions from defined contribution plans one should be raising the payout rate from traditional social security rather than trying to privatize part of it.

Keywords: social security; defined benefit; defined contribution. (search for similar items in EconPapers)
JEL-codes: H55 J26 (search for similar items in EconPapers)
Date: 2008-04-01
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2008022

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