TY - BOOK ID - 136325560 TI - The Latvian NDC Scheme : Success Under a Decreasing Labor Force PY - 2019 PB - Washington, D.C. : The World Bank, DB - UniCat KW - Pension Reform KW - Pensions and Retirement Systems KW - Social Protections and Labor UR - https://www.unicat.be/uniCat?func=search&query=sysid:136325560 AB - Latvia introduced a nonfinancial defined contribution (NDC) scheme in 1996 as it transitioned to a market economy. Despite a 20 percent decline in the working-age population from 1994-2016, the ratio of contributors to old-age pensioners rose from 1.6 to 2.1 given a steady increase in formal labor force participation and 5-6 percent real per capita wage growth. Projections show that long-term financial balance will be maintained through 2070, despite the threat of a projected 50 percent decline in the working-age population. Budgeted reserves will cushion the continued transition into a two-pillar public pension scheme. Latvia's most important long-term policy challenge is to create the domestic investments and economic growth to reward younger workers for remaining in the country. ER -