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Pension problems and their solution

Published online by Cambridge University Press:  20 April 2012

C. M. Stewart
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Extract

1 Whichever way you look at it, pensions are a problem. The Policy Studies Institute has expressed concern at the increased burden of State pensions fifty years from now when the number of pensioners increases in relation to the number of contributors. The Institute for Fiscal Studies too is anxious for the same reason and makes the criticism that insufficient consideration was given to the long-term cost when the State scheme was extended in 1978 so as to provide an additional earnings-related pension. The report of the Scott Committee has reduced but not wholly eliminated controversy on the extra value of index-linked public service pensions compared with the pensions commonly provided in the private sector. Employers, on whom the financial burden finally rests, are hard pressed to finance the accrued pension rights of their employees in final salary pension schemes and are unable to make the additional contribution necessary to preserve the values of the pensions and deferred pensions of former employees.

Type
Research Article
Information
Journal of the Institute of Actuaries , Volume 110 , Issue 2 , September 1983 , pp. 289 - 331
Copyright
Copyright © Institute and Faculty of Actuaries 1983

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