View more on these topics

Scottish Life says it has alternative to scrapping DB

Scottish Life is urging companies and pension advisers to think carefully before abandoning defined-benefit schemes for defined contribution.

The firm says it has an alternative that will offer the best of both worlds with the benefits of DC and DB schemes.

The defined cash fund, which is part of the company&#39s existing defined-benefit pension range allows advisers to offer companies a guaranteed benefit at retirement for employees while greatly reducing the financial risk.

The DCF offers staff a guaranteed amount at retirement either as a lump sum or as a multiple of earnings to buy benefits rather than being guaranteed a set income in retirement.

An employee can use the fund to arrange benefits in a similar way to a DC arrangement. Scottish Life says this flexibility allows staff the flexibility to include an allowance for a spouse&#39s pension and tax-free cash alongside their own pension.

Group pensions marketing manager Mark Polson says employers should take time to consider their options before dismissing DB schemes.

Polson says: “Many companies with existing defined-benefit schemes are keen to reduce costs and financial risk but they are also well aware of the benefits to employees, and the health of their business of keeping the scheme. Firms are conscious of the backlash experienced by companies that have closed DB schemes so the idea of closing their own does not seem as attractive as it once was.”


B&CE aims to build on stakeholder

Employee benefits and stakeholder pension provider B&CE is aiming to increase presentations to employees. The firm&#39s research shows that 82 per cent of construction employers support the idea of more pension presentations to persuade individuals to increase contributions to the industry&#39s EasyBuild stakeholder scheme. The B&CE scheme is the UK&#39s most popular stakeholder scheme, with […]

NU looks at guarantee charge to boost equity backing ratio

Norwich Union is considering bringing in a charge for guarantees on its NU life & pensions with-profits fund to allow it to increase its equity backing ratio and avoid closing it. NU says it expects a number of life offices to follow suit as the only serious way to increase equity exposure under the new […]

Standard boosts IFA marketing

Standard Life has launched an improved marketing programme to IFAs. The web-based system, which runs on a six-month cycle, is comprised of integrated campaigns available free to IFAs, with the aim of targeting customers already receptive to Standard&#39s services. Standard says the new service should slash its direct mailing costs by 86 per cent while […]

Equitable won&#39t sue Govt

Equitable Life has ruled out suing the Government for regulatory failures after legal advice that it has no realistic claim. Law firm Herbert Smith has told the firm it has “no realistic claims against the regulators” and that any claim by policyholders would be “complex, lengthy and costly”. The Serious Fraud Office is understood to […]

Bonds in 2017: Stick or twist?

Royal London Asset Management Bond Fund Managers Paola Binns and Craig Inches look at why short duration could be a key tactic for fixed income investors during 2017. Read the full article here The value of investments and the income from them is not guaranteed and may go down as well as up and investors […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment