04 August 2009
The Association of Consulting Actuaries (ACA), was recently
asked to give an opinion on the future of MPs Pensions. They have
now submitted their opinion to the Senior Salaries Review Board's
(SSRB) review of Parliamentary pensions and recommended that MPs be
switched to a Career Average scheme. However they also stated that
this should wait until after a General Election as part of a wider
review of public sector pension provision.
ACA Chairman, Keith Barton commented:
"These interim proposals represent about the limit of genuine risk
sharing currently available, whilst retaining a DB approach, which
we continue to favour given the volatility associated with DC and
DB's greater operating efficiency. We have reiterated in our
evidence the ACA's recommendations on how wider risk sharing,
requiring changes in current legislation, which presently restricts
its application, could be implemented. Risk sharing reforms could
provide additional flexibility in the running of both private and
public sector funded schemes, like the Parliamentary scheme."
The full statement can be found here:
ACA Press Release
