Implementing the NDC theoretical model: a comparison of Italy and Sweden

This chapter compares two European pension reforms of the 1990s: the Italian and the Swedish. These reforms are both based on the so-called notional defined contribution (NDC) scheme, which merges pay as you go financial architecture with the award and indexation formulae typical of funded, defined contribution systems. The point of departure is a theoretical framework that highlights the implications of the different ways in which Italy and Sweden implemented the NDC model. The comparative analysis shows the incongruities and fragility of the Italian reform and the coherence and rationality of the Swedish one.