Template-type: ReDIF-Paper 1.0
Author-Name: Carlos Vidal-Meliá
Author-Workplace-Name: Department of Financial Economics and Actuarial Science, University of Valencia (Spain), and research affiliation with the Instituto 
	Complutense de Análisis Económico (ICAE), Complutense University of Madrid (Spain), and the Centre of Excellence in Population Ageing Research (CEPAR),
	UNSW (Australia).

Author-Name:
 Manuel Ventura-Marco
Author-Workplace-Name:
 Department of Financial Economics and Actuarial Science, University of Valencia, Avenida de los Naranjos s.n., 46022 Valencia. (Spain).
Author-Name: Juan Manuel Pérez-Salamero González
Author-Workplace-Name: Department of Financial Economics and Actuarial Science, University of Valencia, Avenida de los Naranjos s.n., 46022 Valencia. (Spain).

Title: Actuarial accounting for a notional defined contribution scheme combining retirement and longterm care benefits
Abstract: This paper develops a social insurance accounting model for a notional defined contribution (NDC) scheme combining retirement and long-term care 
	(LTC) contingencies. The procedure relies on standard double-entry bookkeeping and enables us to compile a “Swedish” type actuarial balance sheet (ABS) 
	following a framework equivalent to an open group approach. This methodology is suitable for reporting the system’s solvency status and can show 
	periodical changes in the system’s financial position by means of an income statement. The information underpinning the actuarial valuation is based 
	on events and transactions that are verifiable at the valuation date, without considering expected future trends. The paper also contains an 
	illustrative example to make it easier for policymakers to understand the main advantages and difficulties of our proposal. The policy conclusions 
	stress the need to properly report social insurance benefits to enhance transparency and sustainability and to improve decision-making because it is 
	in the public interest to do so.
Classification-JEL: G22, H55, I13, J14, J26.
Keywords: Life Care Annuities; Long-Term Care Insurance; Notional Defined Contribution; Pay-as-you-go; Pension Accounting; Retirement; Social Security; 
	Sustainability.
Length: 49 pages 
Creation-Date: 2018-05
Number: 2018-16
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae1816.txt
File-URL: https://eprints.ucm.es/id/eprint/47904/1/1816.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:1816