Progress Report on Compiling 2008 SNA Table 17.10 for Australia Amanda Seneviratne

1. Progress Report on Compiling 2008 SNA Table 17.10 for Australia Amanda Seneviratne Australian Bureau of Statistics

2. Session overview What this session will cover: Pension policy framework in Australia Types of Pension funds in Australia Populating 2008 SNA table 17.10 Questions encountered in populating table 17.10 Demand for a Pension Satellite account Questions for the working party on National Accounts

3. Pension policy framework in Australia The Australian retirement incomes framework comprises three pillars: The Age Pension The Superannuation Guarantee Voluntary superannuation incentives.

4. Types of Pension funds in Australia • Australian pension funds are classified into the following functional categories: • Corporate funds • Industry funds • Public sector funds • Retail funds • Small funds (including Self-managed Superannuation funds, SMSFs) • The above funds operate the following pension schemes: • Defined benefit schemes • Accumulation schemes • Hybrid schemes

5. Table 17.10 Supplementary table on pension schemes in social insurance

6. Populating 2008 SNA table 17.10 Table 3: Australian Superannuation Entitlements, June 2010

7. Questions encountered in populating table 17.10 Social Insurance and Social Assistance in Australia. Clarification on the definition of ‘Sponsor’ in table 17.10. Separate reporting of Defined benefit, Accumulation and Hybrid schemes.

8. Demand for a Pension funds satellite account • Increasing pension obligations on governments due to demographic changes will • be fully articulated in an Australian pension satellite account. • Increased balances of pensions funds over time due to compulsory nature of • superannuation in Australia will require greater reporting and monitoring, a • pension satellite account would fulfil this requirement. • The satellite account would facilitate comparability and analysis of pension funds • on an international footing. • The satellite account would provide critical information and analysis on entities • that provide services to the superannuation sector, such as investment managers.

9. Questions for the Working Part on National Accounts • Table 17.10 does not cover social assistance, a significant part of retirement benefits in Australia. Do the WPNA think that an additional column to capture such arrangements should be included? • The ABS seeks clarification on the term ‘Sponsor’ with regards to public sector corporations. • The SNA suggests in paragraph 17.153 in case of when employers take ‘contribution holiday’ that the contributions should be imputed even in the event of a contribution holiday. It states: • It is important that contributions continue to be recorded even in the event of a contribution • holiday benefit to the employer being regarded as a change in liabilities between the • pension fund and the employer. This leaves the net worth of both the same as when • contributions are not recorded under a contribution holiday without reducing the • compensation of employees artificially. • The ABS is not clear on how the above SNA recommendation could be implemented • and would welcome assistance/clarification from the membership of the WPFS/WPNA?