Source: http://www.imf.org.
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 to thus an ubeasy one. There is nonetheless growing advocacy of funded public pensions as part of an ideal pension system, whoch raises more general issues aboute the role of public sector in pension provision.