Retirement Reform
The Actuarial Society hosted a Social Security and Retirement Reform Seminar on 7 and 8 August 2007.
At the opening of this key conference to debate the retirement reform proposals from National Treaury (linked to this paragraph), Adrian Baskir, President of the Actuarial Society, said, "The acturial profession has considerable experience and skill to add to the improvement proposed in South Africa's pension industry. This conference is just one way in which the Actuarial Society is facilitating unbiased debate, useful research and thought leadership on the key issues. The objective is better pensions for the population and a better savings ethic to assist the countries economic growth targets".
Jonathan Dixon, National Treasury, and Selwyn Jehoma, Department of Social Services, provided the audience with an overview of the suggestions design by government. Speaker after speaker after that confirmed the industries appreciation for the government's lead in this process. Dixon emphasised that this was the start of a debate on the key issues and he and Jehoma expressed their appreciation for the actuarial impact they have received so far. Dixon also confirmed his delight at the depth and quality of research presented by the Actuarial Society research teams.
Further evidence of the Actuarial Society's ability to add value to the debate was the presentation by Ken Buffin, an actuary from the United States. Buffin is a member of the International Actuarial Association's Social Security Committee and agreed to come out to South Africa to provide his insights from other pension fund reforms worldwide. This international and actuarial input is of tremendous value to the South African debate to ensure the the right solution for the local context is adopted.
On the detail level the Actuarial Society research teams provided a comprehensive illustration of the interaction between selected level of retirement, death and disability benefits. This research driven at a industry level illustrates the consequences of certain decisions by National Treasury. Colin Southey presented startling figures of the impact of the proposed National Social Savings Fund on the private pension fund industry. Over 60% of new flows into funds would be diverted to the NSSF, leaving less than 40% of the existing private pension fund market with the resulting impact on pension funds, fund administrators, consultants and asset managers.
Copies of the presentations are available under the Resource Centre on this website.
related document:
Social Security and Retirement Reform Paper
The debate was opened up in 2004, with the release of the National Treasury's first Discussion Document on Retirement Reform. The Actuarial Society appointed a task team to develop a response to that document.
related document:
Comments First Treasury Discussion Paper
The cost of retirement provision in South Africa came under the spotlight again at the 2004 Annual Convention of the Actuarial Society, when Rob Rusconi presented a paper on this topic.
related document:
Convention Paper 2004