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Pension Workshop Outcomes

SNA Table 17.10 and proposed table


17.xx
Conceptual recommendations for AEG
and research agenda
Actuarial considerations and data sources

2008SNA
Included a supplementary table on pension
liabilities, Table 17.10

Table 17.10
The workshop confirmed that SNA Table 17.10 included
liabilities related to
(a) employment related pension funds,
plus the following two elements if they are not included in
the core accounts:
(b) government employee defined benefit schemes, and
(c) social security pension schemes.

The view at the workshop was that Table 17.10


represents well a full articulation of Government
liabilities pertaining to retirement, with one exception Social Assistance Schemes.
Additionally the view of a number of participants was
that there is another data need that exists. This is the
need users have to understand the preparedness of
households for retirement.
This need is not met by the core accounts or Table
17.10 and so the workshop proposed an additional
analytical table, Table 17.xx, be developed.

An important method of assistance provided by


government in NZ, Australia, Canada and the USA is
social assistance.
Social assistance is not provided as part of a
participatory social insurance arrangement and so
does not meet the test for inclusion within Social
security as defined by the SNA (17.90).
Unlike schemes of many other countries, workers do
not contribute to a pension or insurance, and the
payment is available to all (subject to means testing).

Additionally there are liabilities/assets important to


informing the issue of funding retirement that are not in
Table 17.10
Retirement savings accounts of individuals that were
encouraged by tax concessions, and
Life insurance annuities, similarly encouraged by
government.

It was noted that such assets can be expressed as


liabilities of the institutions offering such products as
well as assets of households.

The workshop decided to develop a table which would


expand upon the 17.10 articulation with the additional
elements described.
A draft table 17.xx, tentatively titled Household
Retirement Resources has been developed for
comment and details are still being discussed.
The identified purpose of Table 17.xx is to articulate
resources available to households which are explicitly
connected to retirement. It is designed to inform the
important debate (particularly in the context of aging
populations) on the preparedness of households for
retirement.

Draft table 17.xx Household


Retirement Resources

Conceptual recommendations
SNA does not include property income accruing on the
stocks imputed for underfunded defined benefit
schemes. The workshop recommends it be calculated.
The treatment of capital gains as income needs to be on
the research agenda. There is some confusion over the
reading and intent of the SNA, as well as a conceptual
discussion to be had.

Actuarial considerations and data sources


The workshop discussed the role of statistical agencies
in undertaking the necessary actuarial calculations,
making and reviewing the underlying assumptions. The
use of estimates provided by actuaries was supported
as best practice.
The workshop noted that typically the data sources
relating to government were the most deficient. It was
noted that the review of GFS standards goes someway
to addressing this issue, and that it is important for
statistical agencies to support and implement the
standards.

AEG
AEG is asked to support the
recommendations of the workshop.
AEG notes that more work is needed on
criteria for the inclusion of assets/liabilities
in the new table.

Thank you for your attention

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