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

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. A Changing World for Retirement Income Systems (RIS)
• Daunting Demographics
• Fearsome Fiscal Deficits
• Fickle Financial Markets
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3. RIS Impacts
• Redefine ‘retirement’
• Redesign pension arrangements
• Reorganize pension institutions
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4. RIS Redesign Questions – Redefining ‘Retirement’
• Later retirement age?
• When and how?
• Slow transition into retirement?
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5. RIS Redesign Questions – Pension Arrangements
• Adequacy -> Income replacement target?
• Sustainability -> Acceptable contribution
rate? Guarantees?
• Tinbergen Principle: Two Goals -> Two
Instruments
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6. Rethinking Pension Adequacy and Sustainability
• 60% rather than 70% earnings
replacement target?
• Contribution rates and design?
• Employer guarantees? Pricing?
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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’
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8. Rethinking Pension Institutions
• Aligned interests are critical
• Good governance, sensible investment
beliefs, and scale are critical
• Pro-active, intelligent regulation is critical
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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 Commission
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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
Model
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