View more on these topics

L&G wants compulsion on occupational plans

Legal & General says the Government should reintroduce the right for employers to insist that staff join the occupational pension scheme.

The ability to compel employees in this way was scrapped in April 1988 amid concerns that increasingly mobile employment patterns meant it was no longer beneficial to force individuals to save with an employer.

But L&G believes the re-introduction of compulsion at this level would be a step in the right direction as part of a package of developments to encourage employers and employees to contribute to pension schemes.

Pensions marketing manager Andy Agar says: “Before April 1988, employees were forced to join occupational schemes if there was one. This would seem to be a good idea in today&#39s climate – even with transient work history,it is better that individuals do something towards their pension provision.”

The life office is also proposing that the Government should consider some form of tax-neutral compulsory contributions by employees.

A Department of Work & Pensions spokesman says: “The Government has no secret plans for compulsion. We have neither ruled it out or in although we could return to it in the future.”

Wentworth Rose senior pension consultant Gary Ford says: “The whole thing needs a fundamental review as the shift from final-salary to money-purchase schemes continues.

“Setting up money-purchase schemes is the easier option as there are fewer regulatory hoops to jump through and final-salary schemes mean that employers open themselves up to unlimited liabilities.”


Lines crossed

I know the phone systems of some companies is a subject that has been dissected by us all many many times but:1: The average time spent holding to be put through is a minimum five minutes.2: I&#39m constantly getting cut off “by accident” when things get complicated.3: I can never speak to the same person […]

Friends Ivory & Sime – Baronsmead VCT 4

Friday, 26 October 2001.Aim: Growth by investing in unquoted companies.Minimum investment: Lump sum £3,000.Opening-closing date: November 7, 2001-April 30, 2002.Charges: Initial 5 per cent, annual 2 per cent.Commission: Initial 3 per cent.Tel: 08457 992299.

Marketing via the internet is a must

I have been banging the internet drum to other IFAs for over two years now, so I was interested to see the article “Internet is the key to survival” (Money Marketing, October 11). It seems that, at last, the penny has dropped.It is indeed a very foolish IFA who ignores the internet. It will never […]

Skipton Building Society – 2 Year Fixed Rate Bond

Thursday, 25 October 2001.Type: High interest account.Minimum-maximum investment: £3,000-£10,000.Interest rates: 5.15 per cent.Term: Until November 21, 2003.Offer period: Until further notice.Withdrawal penalties: No withdrawals permitted during term.Tel: 0800 446776.

Europe 2017: Value, large-caps & liquidity

Joshua Ausden, Head of Client Investment Strategy, Neptune Read more here Important Information – for Investment Professionals Only. Not for Retail Clients.Investment risksNeptune funds may have a high volatility rating and past performance and forecasts are not a guide to future performance. These are Neptune’s views and as such this document is deemed to be […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment