RETHINKING PENSION DESIGN AND DELIVERY      European Pensions & Investments Summit                 Noordwijk aan Zee, The ...
A Changing World for Retirement Income Systems (RIS)         • Daunting Demographics         • Fearsome Fiscal Deficits   ...
RIS Impacts     • Redefine ‘retirement’     • Redesign pension arrangements     • Reorganize pension institutions3
RIS Redesign Questions – Redefining ‘Retirement’       • Later retirement age?       • When and how?       • Slow transiti...
RIS Redesign Questions – Pension Arrangements    • Adequacy -> Income replacement target?    • Sustainability -> Acceptabl...
Rethinking Pension Adequacy and Sustainability     • 60% rather than 70% earnings       replacement target?     • Contribu...
Tinbergen Principle - Implications• Separate ‘Return Max’ and ‘Payment Certainty’  instruments• True LH ‘Return Max’ inves...
Rethinking Pension Institutions    • Aligned interests are critical    • Good governance, sensible investment      beliefs...
‘Real World’ Glimpses of Hope    • Nordic countries in good shape    • Dutch working hard to get it right from DB      sid...
‘Real World’ Glimpses of Hope (continued) • Brits working hard to get some pieces right – NEST • Canadians have the best p...
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Rethinking Pension Design and Delivery - Presentation by Keith Ambachtsheer at the European Pensions & Investments Summit

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Keith Ambachtshee who is the Director of Rotman ICPM and a speaker at the marcus evans European Pensions & Investments Summit, delivered his presentation titled "Rethinking Pension Design and Delivery" on Tuesday, May, 15 2012.

Join the 2015 Summit along with leading regional pension investors and global asset managers in an intimate environment for a focused discussion of key new drivers shaping institutional investment strategies today.

For more information contact: emailus@marcusevans.com

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Rethinking Pension Design and Delivery - Presentation by Keith Ambachtsheer at the European Pensions & Investments Summit

  1. 1. RETHINKING PENSION DESIGN AND DELIVERY European Pensions & Investments Summit Noordwijk aan Zee, The Netherlands Tuesday, May 15, 2012 Keith Ambachtsheer, Director of Rotman ICPM
  2. 2. A Changing World for Retirement Income Systems (RIS) • Daunting Demographics • Fearsome Fiscal Deficits • Fickle Financial Markets2
  3. 3. RIS Impacts • Redefine ‘retirement’ • Redesign pension arrangements • Reorganize pension institutions3
  4. 4. RIS Redesign Questions – Redefining ‘Retirement’ • Later retirement age? • When and how? • Slow transition into retirement?4
  5. 5. RIS Redesign Questions – Pension Arrangements • Adequacy -> Income replacement target? • Sustainability -> Acceptable contribution rate? Guarantees? • Tinbergen Principle: Two Goals -> Two Instruments5
  6. 6. Rethinking Pension Adequacy and Sustainability • 60% rather than 70% earnings replacement target? • Contribution rates and design? • Employer guarantees? Pricing?6
  7. 7. Tinbergen Principle - Implications• Separate ‘Return Max’ and ‘Payment Certainty’ instruments• True LH ‘Return Max’ investing without fear of de-risking• A-L management in Solvency II ‘fair value’ framework to ensure ‘Payment Certainty’7
  8. 8. Rethinking Pension Institutions • Aligned interests are critical • Good governance, sensible investment beliefs, and scale are critical • Pro-active, intelligent regulation is critical8
  9. 9. ‘Real World’ Glimpses of Hope • Nordic countries in good shape • Dutch working hard to get it right from DB side – Pension Accord • Aussies are working hard to get it right from the DC side – Cooper Commission9
  10. 10. ‘Real World’ Glimpses of Hope (continued) • Brits working hard to get some pieces right – NEST • Canadians have the best pension institutions in the world – CPPIB, OTPP, etc. • Americans could emulate TIAA-CREF as their Pillar 2 Model10

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