Pensions Minister Steve Webb has laid down a summer challenge to industry that pension provision in the future has to provide more certainty for people about what their pension income might be. The Minister urged industry experts at an AXA conference (Tuesday 3 July) 'Towards Optimal Pension Plan Design in Europe', to seize on the ‘gap in the market’ for innovative pension products which might include some form of cost efficient guarantee. "I am convinced people have a huge appetite for certainty about their pension savings, and this demand will drive the shape of pension provision in the future. I want industry to innovate and think hard about this. "With the dawn of automatic enrolment the market is growing – so now is the time for pensions industry to look at the market gap in relation to affordable guarantees and provide the products consumers are seeking. "For example one end of the spectrum could be providing an affordable 'Money Safe' guarantee where the member would get back at least the nominal value of their contributions - individual, employer and tax relief. Another could be offering an investment strategy that reduces the probability of capital loss such as NEST. Steve Webb said:
"The industry needs to move fast on this or be left behind."
Later in the year the DWP will set out ideas for the kind of regime envisaged through Defined Ambition pensions – a new destination, providing a middle ground, moving on from pure DB and pure DC.
Read the full story from the DWP
UPDATED GUIDANCE ON MULIT-EMPLOYER SCHEMES AND EMPLOYER DEPARTURES
17 July 2012
The Pensions Regulator has published its updated guidance on multi-employer schemes and employer departures.
Trustees, employers and advisers may find this guidance useful where they are involved with a multi-employer scheme and wish to understand available options including criteria the regulator expects in situations where an employer departs from a multi-employer scheme.
The guidance includes updates on the amendments to the Occupational Pension Scheme (Employer Debt) Regulations which came into force on 27 January 2012. These include:
introduction of flexible apportionment arrangements: a new mechanism which allows an employer to depart from a multi-employer scheme and without the section 75 debt being due. This includes where the scheme is closed to future benefit accrual changes to the ‘period of grace’ conditions. Also included is further guidance on the factors trustees should take into account when assessing who is responsible for supporting their multi-employer scheme, including the potential implications of recent court cases.
To view the updated guidance visit the Regulator's website
CIPP Policy News Journal
12/04/2013, Page 269 of 362
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