The Greek Pension Reforms: Crises and NDC Attempts Awaiting Completion

Milton Nektarios and Platon Tinios

No 136547, Social Protection Discussion Papers and Notes from The World Bank

Abstract: Greece?s current pension system relies almost exclusively on the state and remains staunchly pay-as-you-go (PAYG) and defined benefit (DB). This paper offers a radical proposal for change: (i) a new multi-pillar notional and financial defined contribution (NDC and FDC) pension system for all generations first insured after 1993, with contribution rates for primary pensions reduced by 50 percent; and (ii) a transitional system for those first insured before 1993. The proposal?s robustness is tested actuarially for the period up to 2060. Though financing the legacy cost would be challenging, the quantitative exercise indicates that a radical pension reform, especially if implemented as a part of an overall recovery package, could set the country on a more favorable growth trajectory.

Keywords: Social Development&Poverty; Labor Markets; Pensions&Retirement Systems; Adolescent Health; Social Analysis; Government Policies; Quality of Life&Leisure; National Governance; Youth and Governance (search for similar items in EconPapers)
Date: 2019-04-01
New Economics Papers: this item is included in nep-age
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:wbk:hdnspu:136547

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