Partial Funding
31.
This proposal
17
originally involved setting aside and
meet estimated
It
maintaining a separate reserve fund sufficient at any time to
pension payments for the next five years.
would only be used in the inconceivable event that recurrent
revenue was insufficient to cover pension payments.
32.
The
considerable.
sum involved in pursuing this proposal is
A 5-year roll forward reserve fund would
initial sum of $15 billion. We have difficulties
require an
in supporting
problems in
a 5-year roll forward reserve fund because of
finding a sum of this magnitude and also because
In
it would be very difficult to justify setting aside funds on
this scale for the benefit of a small section of society.
addition if pensions are secure and are guaranteed in the JD
and the BL there is no justification, as pension expenditure
is only between 4 and 5% of annual recurrent expenditure.
is
It
inconceivable that Government could not meet its annual
pension liabilities.
May 1992
(AP 295/5-C (91) V)
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