THE Government has reshaped its advisers' recommendations in finalising its proposals for a pension scheme.
A 250-page confidential report by The Wyatt Company, actuaries and consultants, was delivered to the Government two months before the launch of last month's consultation paper.
The report, which took four months to complete, reviewed existing social security programmes for the aged, outlined features of a basic pension scheme with no ancillary benefits and suggested the funding and investment needed.
Details of some of its recommendations have been made public.
The report concludes that the level of benefits under existing schemes are relatively limited and warns that the long-term financial impact of changes to the social security system might not be apparent for another 10 or 20 years.
It recommends an initial index-linked monthly payment of $2,300 with an initial contribution rate of 2.95 per cent of earnings.
A separate and independent Government department, employing about 1,663 people, is recommended to handle the administration.
