Restoring a Level Playing Field for Defined Benefits Superannuation
8 Pages Posted: 29 May 2014
Date Written: March 1, 2014
After declining worldwide since the late 1080s, defined benefits plans will not recover their previous dominance in Australia because they can only be offered by large and stable organisations. Since 1992, Australia has had compulsory superannuation that is mostly privately managed in addition, several policy measures have unduly weakened defined benefits schemes, especially in the private sector. Rescinding these measures would revitalise defined benefits, and produce a deeper market for privately managed lifetime annuities. An earlier version of this paper was presented to the 2013 Australian Centre for Financial Studies' Melbourne Money and Finance Conference.
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