View more on these topics

85% of B&CE stakeholder plans are shell schemes

B&CE, which claims to be the biggest stakeholder pension provider, has revealed that 85 per cent of its plans are effectively shell schemes getting only £1.90 a week in employer contributions.

Less than 15 per cent or 27,000 of the life office&#39s 185,000 schemes are getting combined employee and emp-loyer monthly contributions of £50 to £100 but the vast majority do not get anything but token payments.

But the not-for-profit prov-ider, which offers pensions to blue-collar workers in the construction industry, says the situation will get better when it introduces a “negative opt-out clause” on its schemes from February next year.

This means employees will have to sign a document to opt out of a scheme or will join up automatically.

With about 6,000 employees joining the industry every month but only 1,000 entering the scheme, B&CE says the move will mean a significant number of new workers getting occupational pensions.

Deputy chief executive John Jury says: “The biggest benefit of the negative opt-out is that about 5,000 individuals a month will be able to take advantage of their employer&#39s contributions.”

Venn Watson financial advi-ser Alistair Watson says: “Most employees in that scheme are completely oblivious to the fact that the contributions they are receiving are so minimal. The impression they are under is that they will have a retirement income waiting for them.”


Berkeley extends services

Berkeley Independent Advisers has joined forces with IFA Keith Popplewell to offer a new range of services through member IFAs. Through Popplewell&#39s company, Pension Transfer Advisory Services, BIA members will now be able to offer transfer of preserved pensions, analysis of retirement income options, release of over-funded pensions, claiming of back-dated pensions for part-timers and […]

BoE Life International – With-Profits Bond

Wednesday, 30 October 2002 Type: Single premium bond Aim: Growth by investing in the BoELI Series 4 with-profits fund Minimum investment: Lump sum £25,000 Place of registration: Isle of Man Investment split: 100% in the BoELI Series 4 with-profits fund Isa link: No Charges: Initial – initial fee option £25,000-£99,999 2%, £100,000-£250,000 1.5%, establishment fee […]

Chelsea Building Society – Guaranteed Bond (Issue 4)

Friday, 1 November 2002 Type: High interest account Minimum-maximum investment: £2,500-£500,000 Interest rates: 4.25 per cent gross a year Term: Until May 6, 2004 Offer period: Until further notice Withdrawal penalties: 75 days&#39 loss of interest Tel: 0800 429429

&#39Bonfire&#39 for Fishwick as IFAs get a lifeline on split caps

IFAs will be liable in the split-cap crisis only if they went beyond claims made by trust managers when advising clients, the AITC has told the Treasury select committee inquiry.Aberdeen Asset Management&#39s former head of investment trusts Chris Fishwick denied collusion, saying the firm never invested in another trust on the understanding of receiving future […]

US loan growth is not painting a pretty picture for the US economy

Written by Mike Riddell One of the current big debates in global financial markets is whether investors should believe ‘hard’ rather than ‘soft’ data, where the usually reliable business and consumer surveys have been suggesting strengthening in global growth momentum for some time now, while the economic data that feeds through into the Gross Domestic […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm