We can of course absorb these by either raising contributions, or by letting benefits fall behind them. But such measures hit people directly in their pockets, and I think that better solutions are available to improve the sustainability of the pension system. One of these is to widen the contribution base through greater labour participation.
Risk-free Rates as Alternative Benchmarks While the new VWAP methodology will help ensure that BBSW remains a robust benchmark, it is important for market participants to ask whether BBSW is the most appropriate benchmark for the financial contract. For some financial products, it can make sense to reference a risk-free rate instead of a credit-based reference rate.