View more on these topics

GAD proposes retaining differential Serps rebates

The Government Actuary&#39s Department has disappointed the pension industry with its recommendations to retain differential contracting-out rebates for personal and occupational pensions.

In the GAD&#39s five-yearly consultative document on rebate levels for contracted-out pension arrangements, Government Actuary Chris Daykin recommends keeping the current rebate levels.

Many pension experts would like to see the Government return to flat rebate levels for all schemes, claiming differential benefits are unfair.

Scottish Life head of pensions strategy Steve Bee says: “I don&#39t know why you have one benefit level for one scheme and one for another. It is unfair and I am disappointed differential benefits are set to stay.”

Pensions Management Institute vice-president Ian Eggleden says: “We would like to see a level paying field for the different types of schemes.”

The GAD report is also criticised for recommending that future rebates under the new second state pension will be calculated using the current Serps basis even after Serps is replaced in April 2002. Some experts claim this adds to the confusion surrounding the future of contracting out.

Scottish Equitable pensions development manager Steve Cameron says: “The whole future of contracting-out is so very complex, it is almost surreal. Serps will no longer exist but rebates will not relate to S2P.”

Netball is in the same league as ice-hockey, football and scuba-diving when it comes to the dangers of injury faced in sports, according to financial services and charitable group Foresters.

The group says this explains the high levels of applications from netball players for its sports injury plan. Head of marketing and communications Stephen Dilworth says: “I didn&#39t realise it was such a dangerous game. It seems there are a lot of hand, joint, knee and ankle injuries.”

Recommended

Alexander Forbes back on the UK acquisition trail

Independent financial risk services company Alexander Forbes is set to hit the UK acquisition trail again after securing £100m of offshore funds.The South African-based company, which acquired IFA Johnstone Douglas in April, says the move is part of its strategy to expand its presence in the UK retail client market. It expects to announce further […]

Sun sets its eyes on flexible arena

Sun Bank is calling for the Council of Mortgage Lenders to establish an industry benchmark for flexible mortgages.The UK banking arm of Sun Life of Canada has approached the CML following the recent launch of its new flexible mortgage.Marketing manager Richard Farr says research carried out during the planning stage of the loan revealed customers […]

L&G predicts mortgage protection sales boom

United Friendly claims it is never too early to start saving for a wedding and investing in its endowment savings plans can produce a sizeable nest egg.Research carried out by the direct life office has prompted it to encourage parents to start saving for their child&#39s marriage.The survey shows the average cost of a wedding […]

Time and tide wait for no IFA

Wafer-thin margins will be the dominant characteristic of the stakeholder market and learning how to operate within them will be our biggest challenge.While the group market will offer helpful economies of scale, there will still be customers seeking help with their pensions on an individual basis because they do not fall easily into any particular […]

What exactly is product innovation?

By Fiona Tait, Pensions Specialist Ros Altmann reportedly hoped for more product innovation following pension freedom¹ and, according to one poll, 66 per cent of advisers also believe that providers should be doing more². This article considers whether there is a real client need for new products, or whether we should be focusing our attention on efficient delivery […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment