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‘ABI must change its S2P stance’

The ABI is not speaking for its members and should follow Scottish Widows, Axa and NU by advocating a universal pension and scrap S2P, say the LibDems.

LibDem pensions spokesman Lord Oakeshott says the ABI should listen to its members and change its stance on pension reform.

The ABI’s current position is that the contracting-out rebate should be increased, with S2P becoming a flat-rate system and entitlements calculated as if everyone was earning 15,000 a year. Contracting out would be abolished for those earning less.

Oakeshott says this position is out of step and trying to mend a system that is “beyond repair”. He urges the trade body to move on the issue.

He says perhaps the ABI is trying to keep everyone happy by representing the lowest common denominator of its membership but it needs to go further by following the views of Scottish Widows, Axa and NU.

Oakeshott says: “The ABI is not listening to some of its members who are providing a better view of pension reform.”

ABI spokesman John French says: “We have rigorous debate between members when formulating policy. We believe in radical reform but believe S2P should be retained and improved to support better incentivisation.”

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