Actuarial Society Pension Fund Reform Conference
"Actuarial Society provides substance to government social security and retirement reform objectives"
The actuarial profession has again taken up the challenge of providing thought leadership to the financial services industry. At the opening of a key conference to debate the pension reform proposals from National Treasury and the Department of Social Development, Adrian Baskir, President of the Actuarial Society of South Africa (ASSA) , said "The actuarial profession has considerable experience and skill to add to the reforms 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 countrys economic growth targets".
Jonathan Dixon, National Treasury, and Selwyn Jehoma, Department of Social Development, provided the audience with an overview of the suggested design by government. Speakers generally confirmed the industrys 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 input they have received so far. Dixon also confirmed his delight at the depth and quality of research presented by the ASSA research teams.
Further evidence of the ASSA's ability to add value to the debate was the presentation by Ken Buffin, an actuary from the United States. Buffin is Deputy Chair of the International Actuarial Associations Social Security committee and agreed to come 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 that the right solution for the local context is adopted.
On the detail level the ASSA 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. The Retirement Matters Committee presented startling figures of the impact of the proposed National Social Savings Fund on the private pension fund industry. A sample of funds showed that over 60% of new contributions into funds might have to be diverted to the NSSF, leaving less than 40% for the existing private retirement fund market with the resulting impact on pension funds, fund administrators, consultants and asset managers.
Baskir also welcomed the fact that the various stakeholders represented at the conference government, labour, business and the financial services industry in particular all sought to involve ASSA in the consultations and discussions and valued the Societys role in providing professional and impartial input and expertise.
All the presentations from the conference are available from the Society's website www.assa.org.za. (Resource Centre Papers (Conventions and Sessional Meetings), or http://www.assa.org.za/default.asp?id=1000000157
The Actuarial Society of South Africa consists of 750 qualified actuaries operating largely in the financial services industry. Actuaries qualify by means of some of the most intensive professional exams in the world, coupled with clear professionalism requirements promoting high ethical standards. The Society has been in existence for 60 years and includes in its charter the need to act in the public interest. It strives to separate the debate on key issues from pure commercial interests to issues addressing multiple perspectives and needs of the country.
