1. Nicholas Sherry Senior Advisor on Pensions & Superannuation, ERNST & YOUNG (AUSTRALIA) Friday, 27.9.2013

2. “The Australian Pension Reform Experience” 15 th Hydra Meeting Hellenic Association of Insurance Companies

3. Page 3 Pillar 1Pillar 2Pillar 3 ► Flat universal, state pension, funded Pay as You Go ► Defined benefit pension/lump sum ► 24 p.c. of average earnings, increased from time to time. ► Coverage 3 out of 10, public service and large corporates ► Pension age women 60, men 65 ► English “common law trustee” governance and investment by private sector Australia Pension System early 1980s

4. Page 4 Pillar 1Pillar 2Pillar 3 ► Flat state pension – funded Pay and You Go ► Compulsory defined contribution: 3 p.c. (1987) 3 – 9 p.c.(1992-2002) 9-12 p.c. (2012-2020) ► Average 3 to 3.5 p.c. additional voluntary employee contribution ► Means tested – assets and income (1984) ► Lump sum, early access very limited ► 27.7 p.c. male total average weekly earnings (2004 &2010) ► Coverage 92 p.c. of workforce ► Most define benefits closed (1990-2005) ► Independent, trustee governance, diversified prudent best interest of member investment by private sector. Prudentially regulated (1994) ► Pension age 65, women 60 to 65 (1996- 2012) ► Pension age 65 to 67 (2013-2023) ► Low cost diversified investment “default”, auto-consolidation multiple accounts, increased trustee governance and transparency, fee for service replaces commissions (2013) Australia – Pension System today

5. Thank you!