Pensions Minister: Pensions policy has to be about the big picture

The Minister was taking part in a debate organised jointly by the International Longevity Centre-UK and the Actuarial Profession entitled Pesnsions reform after the election; how the consensus can be maintained.

The debate, which featured a number of eminent speakers, examined the future of pensions provision in Britain, both private and state, and examined how the challenge of providing for future generations can be met.

The Minister said: “At the start of a new government, the time is right to look at the big picture. Pensions policy has suffered from the curse of incrementalism in the past coherent systems have been tinkered with to the extent that they no longer function properly.”

He continued: “The state pension must be the foundation on which all other pensions policy is based and we will help ensure this by restoring the link between pensions and earnings.”

Charles Cowling, chair of the Actuarial Profession’s pension committee said: “It is heartening to hear a pensions minister look to the long term. Commitments towards simplification and giving people greater choice, including scrapping the mandatory retirement age, are welcome. The time for a frank and open debate on pensions is now. It cannot wait any longer. And the Actuarial Profession will play its part in ensuring that this debate is informed with fact and shapes a sustainable and fair pensions system.”

Baroness Sally Greengross, Chief Executive of the International Longevity Centre- UK added: “A whole new approach is needed if we are to deliver a future pension regime which is fair, sustainable and helps tackle pensioner poverty. It was clear from the debate that there is significant consensus on the objectives of future pensions reform. Pension reform is too important to become a political football.”

ENDS

Notes to Editors:

1. Actuaries provide commercial, financial and prudential advice on the management of a business’s assets and liabilities, especially where long term management and planning are critical to the success of any business venture. They also advise individuals, and advise on social and public interest issues.
2. Members of the Profession have a statutory role in the supervision of pension funds and life insurance companies. They also have a statutory role to provide actuarial opinions for managing agents at Lloyd’s.
3. The Profession is governed jointly by the Faculty of Actuaries in Edinburgh and the Institute of Actuaries in London. A rigorous examination system is supported by a programme of continuing professional development and a professional code of conduct supports high standards reflecting the significant role of the Profession in society.
4. The Profession is available to provide expert comment to the media on a range of actuarial- related issues, including enterprise risk management, finance and investment, general insurance, health and care, life assurance, mortality, and pensions.
5. The event was kindly sponsored by Aviva.