Session: 65

IACA

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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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Session: 19

Social Security

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Summary

The former Swedish pensions system was established in 1960. It consisted of two parts - the National Basic Pension and the National Supplementary Pension. Guidelines for a pension reform were adopted by the Swedish parliament in the summer of 1994, and in June 1998 the majority of legislation constituting the reform was passed by the parliament. The decision was to replace the current defined benefit system with a defined contribution system consisting of two main types of pension: the Income Pension and the Premium Pension. The Income Pension comes under a pay-as-you-go system, while the Premium Pension is a scheme where contributions are invested in funds chosen by the insured (the pension saver), i.e. a premium reserve system (funded system).

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Principal, Towers Perrin

Helen Martin is a Principal in the employee benefits/retirement practice of the Sydney office of Towers Perrin. She specialises in advising employers and trustees in relation to all aspects of superannuation and other employee benefits.

Helen is the firm's Senior Actuary, responsible for managing the development of quality procedures, tools, reference materials and the like on actuarial, legislative and other superannuation issues for use by all Australian retirement consultants and analysts.

Her consulting experience includes advising employers and trustees in relation to benefit design and strategic planning, financial management of superannuation plans, legislation issues, member communication, investment and asset-related issues.

Helen Martin has a Bachelor of Arts (majoring in actuarial studies) and qualified as a Fellow of the Institute of Actuaries of Australia in 1986.

Helen is a member of the Institute of Actuaries of Australia (IAAust) and was elected to the Council of the IAAust in 1997. She was elected Vice President from December 1999and is President for the year commencing December 2001.

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