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Firms face 8bn costs

Company pension costs will escalate by 8bn within eight years if the Government goes ahead with its proposed reforms, says Aon Consulting.

It says the national personal accounts scheme will add a further burden on businesses which are struggling under the funding requirements of The Pensions Regulator.

Aon estimates that a further 2.3bn in pension costs will be passed on to employers under the NPAS although this will be phased in over a three-year period beginning in 2012.

Added to the 5.8bn in funding requirements from the Pensions Regulator for defined-benefit schemes, this is equivalent to almost 2 per cent on the UK’s wage bill, according to Aon.

Chief actuary Donald Duval says: “These additional costs are likely to translate into lower profits for shareholders, higher prices for customers or lower salaries for employees.”

The Confederation of British Industry director-general Sir Digby Jones says: “Compulsion will cost employers 2.3bn and they will need help in managing this burden.”


IMA hails reforms as big step forward

The Investment Management Association says the White Paper is a major step towards achieving a pension system fit for the 21st Century. It welcomes the Government’s preference for a single, centrally-run national personal accounts scheme. The Association of British Insurers says the White Paper points pension policy in the right direction and provides a solid […]

NS&I withdraws performance claim after criticism

National Savings & Investments has withdrawn claims about the performance of its guaranteed equity bond from its press advertising following IFA criticism. In a letter to Money Marketing, Aire Valley IFA Malcolm Guy branded the ad misleading because it claimed that the bond would “genuinely outperform any growth in the FTSE 100 index”. Guy called […]

Independence is still key, 1 year into depolarisation

A year intop depolarisation, 90 per cent of consumers say seeing an “independent” financial adviser is important to them, despite not really understanding what that means.IFA Promotion says 84 per cent of UK adults admit they do not understand the different types of financial advice available to them. The group says 72 per cent of […]

Which? warns of overseas property perils

Consumer body Which? has warned of the danger of buying property abroad.In a move likely to alert mortgage brokers, for whom the overseas market is becoming increasingly important, Which? says estate agents, lawyers and property management companies all have a vested interest in customers buying abroad regardless of whether the property is appropriate or affordable.Buying […]


White paper — Dubai International Insights

Jelf Employee Benefits discusses the legislative changes in Dubai, available medical facilities and policy considerations for employers with expatriate workforces in the country. This edition will be of particular interest to global human resource directors, compensation and benefits specialists and mobility managers who have employee populations in Dubai, or are considering operating there in the near future.


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