Should Public Pensions Be Funded?

35 Pages Posted: 15 Feb 2006

See all articles by Richard Hemming

Richard Hemming

International Monetary Fund (IMF)

Date Written: March 1998

Abstract

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.

Keywords: Public pensions, funding, pay-as-you-go, aging populations

JEL Classification: H55, H60, J10

Suggested Citation

Hemming, Richard, Should Public Pensions Be Funded? (March 1998). IMF Working Paper No. 98/35, Available at SSRN: https://ssrn.com/abstract=882277

Richard Hemming (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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