View more on these topics

&#3972% of FS schemes are closed to new entrants&#39

Seventy-two per cent of final-salary schemes are closed to new

entrants and nearly all employers say the Pensions Green Paper will

not increase pension saving, says the Association of Consulting

Actuaries.

A survey by the ACA shows that 9 per cent of defined-benefit schemes

are also closed to new contributions from existing members.

The poll of 336 firms employing 1.8 million staff reveals that 93 per

cent of employers think the Green Paper will be ineffective in

encouraging greater occupational pension provision.

The research also says that combined employer and employee

contributions into final-salary schemes average 17.6 per cent which

is more than double the average contributions into money-purchase

schemes at 8.7 per cent.

The ACA found that emp-loyers were concerned at the knock-on effect

of the proposed £1.4m lifetime limit, with 55 per cent saying

the limit would cause problems with senior staff and 42 per cent

saying the proposals would lead to sch-emes being redesigned.

Chairman Gordon Pollock says: “Occupational pension provision is on

the decline and the flight away from final-salary arr-angements has

accelerated disturbingly over the last six months.

“Almost daily, we see household-name businesses taking action to

red-uce their pension costs.”

Intelligent Pensions technical Manager David Trenner says: “Gordon

Brown has been taking large amounts from pension schemes since 1997

and the Inland Revenue insisted you could not run a pension with a

large surplus. It does not take an economist to work out why

defined-benefit schemes are in trouble.”

Recommended

Get on route 166

The fears surrounding CP166 are understandable, as inefficientproducts and processes will be revealed to all and the changes to thesystem will force companies to drop products that incur high chargesin favour of those that operate more efficiently. The wait-and-seeattitude, with many organisations holding on to see what theircounterparts will do, could be a significant risk. […]

ScotLife claims win over Virgin

Scottish Life International is claiming victory in its challenge toVirgin and SG Asset Management over whose fund would perform bestover five years.In 1998, SLI bet that its protected deposit bonus 95 fund wouldoutperform Vir-gin&#39s UK index-tracking fund and SGAM&#39s newly launchedUK growth fund, with the losing companies donating £6,000 to acharity of the winner&#39s choice.Despite […]

&#39Poor protection service hitting IFA businesses&#39

Poor levels of service in the protection sector are holding back IFAbusiness, according to research by Bright Grey.The new protection provider, which is set to start taking businessnext week after a year-and-a-half&#39s preparation, says it will putservice at the core of its proposition.Its survey of 100 IFAs, conducted last week, says 68 per cent of […]

Manor Park – Guaranteed UK Selected Growth Fund

Tuesday, 25 March 2003 Type: Guaranteed growth bond Aim: Growth linked to the performance of the FTSE 100 index Minimum-maximum investment: £5,000-no maximum Term: Three years Guarantee: Choice of 85%, 90%, 95% or 100% of capital returned in full regardless of the performance of the index Return: 160%, 120%, 80% or 40% growth dependent on […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment