View more on these topics

Brown to review MPs’ pensions

Prime Minister Gordon Brown is reported to have ordered a review of MPs’ lucrative final salary pensions.

According to reports in the weekend papers, Brown has asked the Government actuary to look into abolishing a defined benefit scheme for MPs as well as options such as increasing MPs’ retirement age, changing provisions for retirement on the grounds of ill health, increasing member contributions, changing the accrual rate and changing the maximum level of benefits that can be built up.

The Conservatives said last year that the scheme should close to new entrants. Leader David Cameron says new MPs should instead be enrolled in a defined contribution scheme.

Brown is likely to have been prompted by predictions that the economic crisis would force significant numbers of remaining private sector final salary schemes to close.

Last month the National Association of Pensions Funds estimated that 52 per cent of defined benefit schemes currently open to new members in the private sector could close as a result of the current economic crisis. It says 1,000 pension schemes are in jeopardy.


Rational thinking

Moves indicated by the FSA toward more equal treatment of platforms, when compared with other investment providers, raise some fascinating questions.

Firms face struggle to close funds

Some asset management companies may struggle to find the resources to close or merge underperforming funds, says the FSA.


Sharp words for a blunt instrument

The Bank of England once again dropped interest rates, this time to an all-time low of 1 per cent, in an attempt to get the lending market moving.

How do you choose the best online service?

By Ross Jackson, senior marketing manager There are many different protection online services available in the market and no doubt you’ll have used a few when submitting protection business. But why should you have to put up with slow, unresponsive sites for your business when you’re used to dealing with slick, modern user experiences in your […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment