Die Entwicklung staatlicher und privater Alters-Versorgungseinrichtungen im Vereinigten Königreich

Abstract

The historical development of old age pensions in Britain has been along different lines to the development in Germany, and was for many years dominated by the conception that the function of the State, in framing social security schemes should be limited to the provision of flat rate benefits on a subsistence level for the whole population. This therefore left wide scope for the provision of additional retirement benefits under pension schemes set up by employers for their employees, and it has been a matter of policy of successive governments to encourage the development of such schemes. At the present time the funds of such schemes are an important source of capital formation and the first results of an official enquiry into the constitution of pension fund assets have recently been published. Occupational pension schemes have not been subject to any supervision or control by government authorities but in order to take advantage of the income tax concessions available it has been necessary to obtain approval of such schemes by the Inland Revenue authorities whose sole concern has been to prevent undue loss of tax revenue thereby. In order to satisfy these authorities, quite apart from the general desirability of such control, private pension schemes normally operate on the basis of quinquennial actuarial valuations, the Actuary having complete freedom in determining the valuation basis. The introduction of a small graduated element on top of the flat rate pensions under the state social security scheme in 1961 marked a departure from the basic principle previously adopted but where an employer was already making adequate provision for some or all of his employees under an occupational pension scheme he could arrange to exclude them from the graduated element so that they would continue on the flat rate basis. A considerable number of employees have been “contracted out” of the graduated scheme on this basis and in respect of their “contracted out” level of benefits it has been necessary to introduce an element of supervision by the government authorities. Considerable problems would arise for “contracted out” schemes if the graduated scheme were to be substantially extended or if accrued benefits thereunder were liable to be revalued from time to time, for example if linked to an index of priees or wages. An Appendix to the paper sets out details of pensions under the state social security scheme and the income tax and other conditions relating to occupational pension schemes and to benefits and contributions thereunder.