Abstract

This chapter provides a defense of a type of occupational pension, known as “collective defined contribution”, which is based on the idea that it is possible to limit the employer’s liability to nothing more than a set contribution while retaining many of the benefits of the collectivization of risks of a traditional defined benefit pension. CDC can be defended against a freedom-based objection from the right via an appeal to the following Hobbesian voluntarist justification: CDC constitutes a “Leviathan of Leviathans” into which it is rational for workers to choose to associate in order to tame longevity and investment risks. CDC pensions that arise from and mirror existing income inequalities can also be defended against an egalitarian objection from the left, by demonstration that they can be grounded in Rawlsian principles of reciprocity and property-owning democracy