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L&G lobbying for’soft compulsion’ pension solution

Legal & General is lobbying the Pension Commission to impose what it calls a “soft compulsion” solution to the pension crisis after analysing take-up of its company stakeholder scheme.

The firm is calling for legislation that requires an employer to match any contribution made to a pension plan by an employer up to a maximum level – initially set at 3 per cent of pay.

Director of pensions strategy Adrian Boulding says: “Soft compulsion is the best of both worlds’ solution. It forces the hand of reluctant employers unwilling to bear the pensions burden and gives emp- loyees the flexibility to decide when to save.”

Legal & General’s internal research shows take-up of its matching contribution pension is lowest among staff under 30 (71 per cent) and above 60 (69 per cent) compared with a 76 per cent average across all ages.

Hargreaves Lansdown head of pensions research Tom McPhail agrees that matching pension payments is one of the best ways to encourage take-up but he point out: “This is the same Legal & General that persuaded Gov-ernment a 1 per cent stakeholder pension was a good idea. It has one or two skeletons in its closet, so I would question what its agenda is.”


FSA and Ombudsman to implement improved procedures

The Financial Services Authority and the Financial Ombudsman Service have published updated procedures for handling complaints to the ombudsman service which may have wider regulatory implications for firms and consumers. The new arrangements are designed to clarify the different roles and responsibilities of the FSA and the ombudsman service when ‘wider implications’ issues arise; improve […]


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