UK schemes need paritarianism - Smerdon

NETHERLANDS/UK - The UK needs to look more closely at paritarianism for the future of pension funding, argues corporate governance specialist Richard Smerdon.

"The voice of paritarianism in the UK needs to be heard more," said Smerdon, speaking at the EFRP/AEIP conference in Amsterdam yesterday.

Paritarian institutions are administered by representatives of the employers and salaried workers. This balanced management is said to guarantee economic efficiency and promotes social justice and welfare.

As a result, he welcomed the Turner Report 2006, which recommended the introduction of the new national pension savings scheme and proposed the State retirement age be raised to 68 by 2044.

Smerdon argues these developments are a form of neo-paritarianism.

"There are big implications for a post-Thatcher society and a post-Blair society which as effectively abandoned paritarian ideas," said Smerdon.

He also called for improved governance of pension schemes, saying trustees' knowledge and understanding (TKU) of governance requirements for their schemes are a key performance indicator.

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