**<u>Table 1: Structure of National Pension Systems</u>**

|Country|Pillar<br>Zero|Pillar<br>One|Pillar<br>Two|Pillar<br>Three|
|---|---|---|---|---|
|Australia|X||X|X|
|Chile|X||X|X|
|Denmark|X||X X|X|
|Sweden|X|X|X X|X|
|Switzerland|X|X|X|X|

Sources: Andersen and Skjodt (2007); Brunner and Thorburn (2008); Buetler and Ruesch (2007); Palmer (2008); Rocha and Rudolph (2010); Rocha and Thorburn (2007); and Vittas (2008).

Table 2 describes in greater detail the overall structure of the five pension systems. More details on the benefits and costs of different pillars are offered below.

**<u>Table 2: Overall Structure of the National Pension Systems</u>**

|Country|Public Unfunded<br>(Pillars 0 and1)|Mandatory or<br>Quasi-Mandatory Funded<br>(Pillar 2)|Voluntary Funded<br>(Pillar3)|
|---|---|---|---|
|Australia|Universal pension financed from<br>general tax revenues and subject<br>to clawback provisions|Occupational system, operating<br>mostly DC plans. Provision<br>through corporate, industry or<br>retail funds.|Voluntary plans for additional<br>provision and for self-employed<br>workers.|
|Chile|(1) Means-tested universal<br>pension and declining supplement<br>to low-income pensioners,<br>financed from general tax<br>revenues and a sovereign fund.|<br>Open pension funds operating<br>DC plans and managed by<br>independent pension fund<br>administrators (AFPs).|Voluntary plans for additional<br>provision and for self-employed<br>workers. Offered by Pillar 2<br>pension funds and other<br>financial institutions.|
|Denmark|(1) Universal pension financed<br>from general tax revenues.<br>(2) Supplement to low-income<br>pensioners.<br>Both benefits are subject to<br>clawbackprovisions.|(1) Public schemes (mainly<br>ATP) operating DC plans.<br>(2) Occupational funds and<br>insurance companies operating<br>mostly DC plans, based on<br>collective agreements.|Voluntary plans for workers not<br>covered by labor agreements<br>and for additional provision.<br>Offered by pension funds,<br>insurance companies, and<br>banks.|
|Sweden|(1) Contributory public scheme<br>operating as notional defined<br>contribution (NDC) plan.<br>(2) Minimum pension guarantee<br>for combined NDC and FDC<br>benefits.|(1) Public scheme (PPM)<br>operating funded DC plan.<br>(2) Occupational funds operating<br>mostly DC plans, based on<br>collective labor agreements.|Voluntary pension plans for<br>workers not covered by labor<br>agreements and for additional<br>provision. Offered by insurance<br>companies and banks.|
|Switzerland|(1) Contributory DB plan, subject<br>to tight maximum and minimum<br>limits, partly financed from<br>general tax revenues.<br>(2) Means-tested supplement to<br>low-income pensioners.|Occupational funds and<br>insurance companies operating<br>mostly DC plans, but with<br>absolute minimum guaranteed<br>return and minimum annuity<br>conversion factor.|Voluntary pension plans for<br>self-employed workers not<br>covered by the mandatory pillar<br>and for additional provision.<br>Offered by insurance companies<br>and banks.|

Sources: Andersen and Skjodt (2007); Brunner and Thorburn (2008); Buetler and Ruesch (2007); Palmer (2008); Rocha and Rudolph (2010); Rocha and Thorburn (2007); and Vittas (2008).

3