Argentina, Australia, Bolivia, Colombia, El Salvador, Hungary, Kazakhstan, Mexico, Peru, Poland, Sweden, Switzerland, the United Kingdom, and Uruguay have all instituted mandatory private savings plans that, to a greater or lesser extent, supplant the old pay-as-you-go approach.
Private accounts will help to generate higher returns for future generations of retirees, but those generations will still be saddled with a dysfunctional, if somewhat shrunken, pay-as-you-go Ponzi scheme.
In the world of computing utility, customers can purchase storage, server and software from a central location on a pay-as-you-go basis, just as they can buy telephone services or electric power," Tapper explains.
IBM researchers will work directly with Dow tech engineers to build utility-like computing pipelines on the Web that will allow Dow to access IT -- software, server time and data storage -- from IBM on a pay-as-you-go basis.
* A "grandfathering" approach with pay-as-you-go
accounting continued for retirees at transition and accrual accounting applied to active employees.
He further argued that a decisive step toward pre-funding could exploit the large differences in rates of return between pay-as-you-go and a fully funded system.
Pay-as-you-go systems have built-in insurance against inflation and secular capital-market failures.
In every country, those pay-as-you-go
systems are heading toward total disaster.
system worked fine while executives looked to tax-qualified retirement plans for the major portion of their retirement income.
Financing the transition cost associated with moving from the current unfunded pay-as-you-go
system to a system based on any kind of individual accounts is another privatization issue that presents tremendous intergenerational equity questions.
In addition, the FASB proposes that additional amortization of the transition obligation be recorded if the computed amortization on a cumulative basis is less than the amount that would be recognized on a pay-as-you-go