The Swedish pension reform from the mid-90s was an unusually bold move. The financially unsustainable DB state pension was replaced by the Notional DC system which was designed to be neutral across generations. In addition, the individual DC system, known as PPM or Premium Pension System, was introduced as a second leg of the state pension.
This bold reform created a lot of interest internationally and Sweden is often seen as the role model that others could learn from. How does a Notional DC system work? What are the lessons after two decades? What are the challenges going forward?
To talk us through these questions we have invited Ole Settergren, director of R&D at Swedish Pension Authority. Ole is uniquely positioned to do that since he is one of the engineers who built the system. Since then he has been responsible for maintaining it.
Join our conversation for the first half hour. The second half of the session will be dedicated to your questions.
About Ole Settergren
As the long standing director of R&D at the Swedish Pension Authority, Ole is a renowned authority in the area of public pensions and he has written several academic papers on this topic.