Common Wealth Founding Partner Alex Mazer's presentation to the 2016 Conference Board Pensions Summit in Toronto, April 13, 2016.

1. Modern pensions
Conference Board Pensions Summit presentation
Alex Mazer, Founding Partner
April 13, 2016

2. Can pensions evolve?
2

3. Demand for retirement security is rising
3
Under-saving Health
Fiscal restraint Inequality
17% 50%TO

4. Post-pension financial products have
disappointed
4
High
fees
Marketing-
driven
Members
not first
Myth of
choice

5. Financialization
5
Finance as a share of US GDP (%)
Source: Demos

6. The future of retirement: divergent paths
6
Employer pensions
Modern
pensions
Financial
products
§ Member-focused
§ Collective
§ Low-cost
§ Simple
§ Accumulation + decumulation
§ Profit-driven
§ Individualized
§ High-cost
§ Complex
§ Accumulation-only

7. How pensions are usually defined
7
Regulatory
category
Plan design Institution
DB
DC
vs
ERISA
PBA
PBSA
PRPP
Employer
Union
Public vs
private
sector

8. $
1
Towards a functional definition
8
2
Singular
focus
Members
first
Contributions
Retirement
security
Members
Others

9. Optimal sponsoring organizations
9
Scale
Longevity
Mandate

10. Principles underlying modern pensions
10
Single purpose:
retirement security
Simplicity
Lifetime approach Good governance
Minimize costs Fiduciary duty made real
Passive is usually better
Tax and benefits
efficiency

11. Examples of modern pensions
11
Well-
established
Starting up
The future?
Unions
Governments
Associations
Pension funds

12. The good news: it’s not a moonshot
12

13. We’ve already got the parts
13
Sponsors
Strong union,
government, and
association-sponsored
plans.
Governance
Much-admired
governance models
that work.
Investments
New passive offerings.
Active approaches that
have added after-cost
value.
Regulatory
New plan types. More
reformist governments.

14. From good to great
14
Decumulation
Non-lump-sum products that are affordable and understandable
Alternatives
Democratize access
Technology
Simpler, cheaper administration
Regulation
Nimble, integrated, pro-innovation
“Canadian model”
Expand to private and third sectors

15. Questions?
15
Alex Mazer
amazer@common-wealth.ca
@CWpensions
www.common-wealth.ca