Time moves on from DBDs
When Towers Perrin designed the UniSuper defined benefit super fund 30 years ago,generous employer superannuation arrangements provided tangible benefits to employees. These included access to benefits at any age, lump-sum tax on only 5 percent of pre-1983 benefits and the tax-free accrual of fund income.
Also employers (incorrectly) assumed that offering lifetime indexed pensions as well as lump-sum pay-outs was affordable because of projected short life expectancies and the low tax rate on lump sums and heavier tax on pensions.
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