View more on these topics

Contracting-out axe would not force DB plans to shut

Pensions minister Steve Webb insists the abolition of contracting out would not necessarily force the UK’s remaining defined-benefit pension schemes to close.

If the Government introduces a flat-rate, single-tier benefit, companies currently offering DB pensions would see their costs rise. This is because under the current regime, DB schemes are able to contract out of the state second pension and receive rebates on their National Insurance contributions. If contracting out is scrapped, rebates will end, increasing employer NI costs by 3.4 per cent.

Speaking to Money Marketing, Webb says: “Companies that are still offering salary-related pensions are doing so because they suffer the same problems around investment and long-evity uncertainty as everyone else and yet they are still holding on there. For some of them, it is part of the employee benefit package and it is something they value. It does not need to be the death knell if companies value that kind of provision.”


MM Leader: Radical route is right way for reforms

The Government’s state pension reforms, unveiled this week, look set to create a solid and stable platform for individuals to save for their retirement. Details about the proposals have been dripped into the media since last year but it is worth reiterating the huge step forward that they should represent. The current means-tested system of […]


FOS will face audit and open up to FoI

The Financial Ombudsman Service will be subject to a National Audit Office review and will come under the Freedom of Information Act by the end of 2011. The FOS says it commissioned the NAO to review its efficiency and value for money at the end of last year and the review will be completed by […]

Aberdeen MM team rebrand multi-asset growth fund

Aberdeen Asset Management’s multi-manager team is rebranding its £7.9m multi-asset growth fund and is giving it a stronger total return mandate. The fund will be renamed diversified alpha and the team will be changing more than half of the 26 underlying funds. Aberdeen is also reducing the annual management charge from 1.5 to 1.25 per […]


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