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ABI wants DC contracting out revenue to encourage private saving

The money saved from abolishing contracting out of defined contribution schemes must be ploughed back into the industry to encourage private saving, says the Association of British Insurers.
In a research paper released today, the ABI says a cash-flow benefit of £1.6bn a year will be created by the abolition of contracting-out for DC schemes.
The ABI says there is still uncertainty over how it will be used but calls on the Government to channel this revenue into encouraging private saving and thus limiting state pension liabilities, rather than improving the current state pension.
It calls for support for employers to help them cover the cost of providing contributions for the first time or contributions above the minimum rate.
The ABI also wants the revenue to fund an information campaign to highlight the value of employers’ pension contributions, and to encourage people to claim them, and an extension to the FSA’s financial literacy workplace pilots.
The paper says: “It is essential that the extra revenue is not subsumed within general government revenues. If that were to happen, then the abolition of contracting out for defined contribution schemes would cause a fall in pension entitlement. Moreover, the Government would be accepting a higher long-term liability for the unfunded State Second Pension at a time when the population is ageing”.


New Star website for trust data

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Why prevention is better than cure

Quoting the famous adage, prevention is better than cure; there are many proactive benefits that can improve wellness in the workplace, decrease stress, increase staff morale and reduce absenteeism, as well as attracting and retaining employees of a higher standard. With a recent study showing that employees in Britain are working below peak productivity, preventative benefits can ensure you address potential health issues or causes of stress at their source and ensure productivity in the workplace remains at an optimum level. With this in mind, how are you using preventative benefits to help keep your workforce happy and healthy?


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