The pensions industry has warned that many employers due to begin auto-enrolling staff in 2014 will not have enough time to react to any changes introduced as a result of the consultation.
Read the full press release from IFA Online.
Defined Ambition workplace pensions consultation published
8 November 2013
A consultation ‘Reshaping workplace pensions for future generations’ has been published which looks to provide a way forward towards both reforming and reinvigorating workplace pensions. Traditional final salary defined benefit schemes which give the consumer certainty are in terminal decline. Automatic enrolment means significantly more savers will be joining workplace pension schemes: the market is growing and employers and industry are already thinking about their future pension provision. The Defined Ambition Industry Working Group was set up last summer to look at the market gap in relation to affordable pension guarantees and to provide the products consumers are seeking. Over the year this Group have held extensive discussions with a wide range of providers and employers and the proposals contained within this consultation provide a way forward towards both reshaping and reinvigorating workplace pensions. They offer a range of new options that will be attractive to different employers and their employees – all part of a new framework that looks beyond the current regulatory extremes of defined benefit and defined contribution. The Minister of State for Pensions, Steve Webb says in the foreword that new forms of pension – defined ambition pensions – can create high quality provision that will appeal to employees as well as employers. He goes on to say that removing some of the regulatory constraints imposed in the past will allow new flexible forms of defined benefit pensions, which will enable employers to continue to offer pensions to members with a high level of certainty, but with much greater flexibility over the nature of benefits provided. The CIPP policy team will review this consultation and issue a survey to collect member views, if deemed appropriate.
Public consultation: Reshaping workplace pensions for future generations
Pensions update on Defined Ambition scheme proposals
11 November 2013
Further to the publication of the consultation on Defined Ambition pension schemes, Pinsent Masons has published an informative news piece on the possibilities for employers.
Defined ambition (DA) schemes are intended to provide a third way between defined benefit (DB) schemes and defined contribution (DC) schemes. DA schemes should be cheaper for employers than DB schemes, while offering members more certainty over their retirement incomes than DC schemes. The consultation paper proposes changing the law to allow various forms of DA scheme to be established. Employers should start considering now whether a DA scheme might suit them better than their current pension scheme.
Follow the link below to read more from Pinsent Masons.
Proposed defined ambition schemes open up possibilities for employers
CIPP Policy News Journal
16/04/2014, Page 398 of 519
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