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The Growth of Pension Rights and their Impact on the National Economy
Published online by Cambridge University Press: 07 November 2014
Extract
In January 1952 the Councils of the Faculty and the Institute, having in mind the widespread feeling that the growth of pension commitments in relation to the national income is a matter of major public policy, decided to invite a small research group to prepare a study of the subject.
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- Research Article
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- Copyright © Institute and Faculty of Actuaries 1954
References
page 268 note * Hypothetical Life Table 1942-44, taken from the Papers of the Statistics Committee of the Royal Commission on Population, H.M.S.O. 1950 p. 219.
page 271 note * Taking into account education and other subsidized services it is arguable that, from a national point of view, rather than that of the family, a child should be reckoned to consume as many goods and services as an adult.
page 293 note * Bulletin of the Oxford University Institute of Statistics, Vol. 14, Nos. 11 and 12 to Vol. 15, Nos. 10 and 11Google Scholar.
page 293 note † Ibid., Vol. 15, p. 68.
page 293 note ‡ Ibid., Vol. 15, p. 373.
page 301 note * Cmd. 8963
page 301 note † See also para. 13
page 303 note * For the benefit of non-actuarial readers it is necessary to remark that the word “assessmentism” seems to be peculiar to actuaries and is used by them in a special sense to describe a method of finance by which, instead of accumulating funds in advance of the payment of benefits, the benefits are met as they fall due out of current income from contributions or other resources appropriated for the purpose.
page 312 note * R. A. Butler. Budget Speech, Hansard (Commons) 14th April 1953
page 316 note * “Recent developments in Social Insurance” (J.S.S. Vol. 11 page 209)
page 316 note † Alternatively, it had been earlier estimated that the initial liability for existing insured persons for retirement pensions was £8,500m., and increasing this by 25 per cent. for the increase in pension benefits and relevant contributions since 1948 yields £10,600m., agreeing with the round sum above. (Hocking, W. S., “The Development of Social Insurance in Great Britain.” Transactions of the 13th International Congress of Actuaries. Vol. 1 page 417)Google Scholar
page 317 note * Cmd. 8900
page 318 note * Cmd. 6730
page 319 note * We have adopted this as a general rule, viz. that where the gratuity is part of the retirement benefit it should be brought into account in the year in which paid. Using such gross figures as a measure of pension outgo now and in the future assumes that there will always be the same proportion between pensions in force and lump sums awarded in the year; which, though not strictly true, seems justifiable for global calculations. To be consistent, death gratuities have been excluded.
page 321 note † H.M.S.O. 1953.
page 321 note ‡ 11,000 nurses employed under the National Health Service who have opted to remain under the F.S.S.N. scheme have been taken into account in the section dealing with pension schemes provided by life offices, and have been left out of account in these total numbers.
page 328 note * On the assumption that the accumulated funds were reported as at the end of the year and that the interest income was that received during the year, the interest yield calculated on the 
formula would be about 3·8%.