Condron, who is a partner and chief actuarial officer at Mercer, says tackling adequacy of retirement income in DC will be a priority during her tenure.
Phil Simpson of Milliman was re-elected Honorary Secretary and Patrick Bloomfield of Hymans Robertson was elected Honorary Treasurer at the organisation’s recent AGM. Bob Scott (LCP) remains on the ACA Main Committee as Immediate Past Chair.
The other Main Committee Members elected for 2018-19 are James Auty (JLT); Gareth Boyd (Willis Towers Watson); Chintan Gandhi (Aon); Stewart Hastie (KPMG); Gail Higgins (Censeo); Julian Hough (XPS Pensions Group); Steve Leake (XPS Pensions Group); Alex Pocock (Barnett Waddingham); Julie Stothard (Capita) and Steven Taylor (PwC).
Condron says:“I am honoured to be taking on the role of Chair of the Association at a time when further pension legislation is yet again on the horizon. I strongly believe the ACA’s Members’ input is needed to best resolve outstanding challenges that worry the public, businesses and the industry as a whole. And the DB White Paper will drive thinking in the months ahead!
“Firstly, savings levels need to be tackled, notably for those with predominantly defined contribution (DC) pension provision. Retirement income adequacy is a key worry where both the PLSA and Institute and Faculty of Actuaries have highlighted the need for action over the last year or so, building on the ACA’s long-standing call for minimum auto-enrolment (AE) contributions to be raised post-2019. There are also workforce management issues and social care provisions that need to be addressed soon alongside reforms for those excluded from AE provision due to earnings levels or self-employment. And, of course, we need to ensure that the millions of people still relying on good defined benefit (DB) provision see their pensions delivered – with the sponsors of those schemes also supported by way of helpful and proportionate regulation. The ACA and its Members have a big role to play in all of these areas and in responding to the recent White Paper.
“Secondly, we must do more to address low levels of financial education and understanding of pensions including the accumulated wealth required to provide for a comfortable income in later years. The developing simplified member communications, dashboards and work by organisations in this area are welcomed. Messages need to be simple, direct and targeted to respond to the aspirations of all ages. Again, our Members have years of experience in helping to design and communicate pension arrangements with high participation levels.
“Finally, the gap between DB and DC pension taxation needs to be closed. Can it be fair that the outcomes for DB and DC members can be so different under the Lifetime Allowance in place or that DC members can suffer penalties for investment out-performance? And does anyone fully understand and reliably administer the rules now in place? Over the last few years, the ACA has made representations and provided guidance to government on how the pension taxation regime could be simplified – we will continue to do so.”