Chapter 5

Question 1

What is the role of the state

Answer 1

• Encourage = educate = compel= tax incentives= provide suitable instruments
• Direct provider of benefits
• Regulate CLEAR F

Question 2

Why do employers sponsor benefit provision?

Answer 2

• Attract good quality staff
• Desire to look after employees
• Compulsion or encouragement

Question 3

Name some factors that cause a higher cost of state pension provision

Answer 3

• Early retirement
• High life expectancy
• Low birth rate
• Changes in employment patterns

Question 4

What are the implications of a means-test

Answer 4

• lower cost of provision
• Higher admin costs
• More complex
• Degrading
• Disincentive to save
• Fraud