Roles of various parties in state provision

Question 1

State

Answer 1

• Direct benefit provision, eg basic state pension
• Encourage/ compel private sector provision
• Regulate to ensure benefit security
• Educate gen public and employers about benefits
• Collect sufficient taxes from individuals and employers to meet the cost of benefit provision

Question 2

Employers

Answer 2

• Provide group benefit schemes covering benefits such as retirement/ death-in-service
• Enable cheaper benefit provision for employees through economies of scale and provision of expertise
• Facilitate employees being able to make appropriate provision – eg by offering flexible benefit schemes
• May be able to compel some elements of ben provision

Question 3

Individual

Answer 3

• Ensure total provision (incl that from state and employer) gives an adequate standard of living
• Provide for dependents
• Purchase products to meet any outstanding needs (eg personal pension to top up existing pension provision
• Choose benefits provided by employer (where there is a choice) that best meet their individual needs
• Take part in group schemes
• May set up own provision, possibly using financial intermediary given likely lack of expertise