Session: 92

Retirement

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Summary

This paper seeks to explore ways in which the release of funds from pension accumulations can be controlled. It addresses first the reasons for the need or desire for governments to impose any such restrictions, and aims to set out criteria for judging any regime imposed. It considers the current situation in various countries as to controls.

The paper then discusses compulsory annuitisation, to the extent that this is made possible by a well-established annuity market. Where no such market currently exists, it aims briefly to assess the likelihood of such markets developing in the period before mandatory defined-contribution pension plans introduced in recent years start to mature. Other possible annuity products are described for possible use in cases where there are no insurers or others offering conventional annuities for life. Alternatives to annuitisation in controlling the release of funds from such accounts are discussed, and all proposals are judged against the suggested criteria. The alternatives to annuitisation are also considered as ways of controlling the release of funds from funded defined-contribution social security accounts on contingencies other than old age.

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Charlie is a senior consultant in Mercer's Baltimore/Washington (US) retirement practice. He advises various organizations on their retirement plans, executive retirement plans, and retiree medical insurance plans. In this capacity, he works with human resource and finance staffs to develop plan design, funding, accounting and administration recommendations for their plans and subsequent implementation.

With over 20 years of experience, he has worked with clients such as Ahlstrom, American Red Cross, Black & Decker, First Virginia Banks, General Dynamics, Howard Hughes Medical Institute, LandAmerica Financial, and Sentara Health System.

Charlie holds a BS in mathematics from Washington & Lee University and an MAS from Georgia State University. He also completed the Harvard Leadership Development Program. Charlie is an Enrolled Actuary, a Fellow of the Society of Actuaries, and a Member of the American Academy of Actuaries.

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