View more on these topics

Serps debacle

The row between the department of social security and the Treasury over how to deal with the “Serps misselling scandal” may cause the prime minister to intervene, according to officials.


The problem involves the payouts for widows and widowers of those with a state-earnings-related pension which is to be halved when their partner dies. The conservative Government legislated in 1986 to halve entitlements from this April, but people were not informed of the change till 1996.


The department of social security wants to put off the change for up to a decade, while the Treasury is pressing for a scheme under which compensation would only go to those who claim they were actively misled by the government.


Unnamed officials predict Tony Blair will have to intervene to sort out the dispute.

Recommended

Open up impaired annuities

In the new stakeholder world of transparent products where everyone is seeking to provide the best value for money, impaired life annuities cannot be ignored. Not only do they ensure that the annuitant, whether they are buying a compulsory pension annuity or an annuity to pay for long-term care, obtains the best possible income, impaired […]

Pru backs BoS bid

Bank of Scotland&#39s hostile bid for National Westminster Bank has received a boost with Prudential saying it will throw its weight behind the Scottish bank takeover.The Pru has agreed to buy Natwest&#39s life business from BoS if its bid is successful.If implemented, Prudential will have exclusive rights to sell its life, pensions and investment products […]

Pension health warning

An increasing shift to money purchase pensions through stakeholder may leave many more people with very low incomes if ill health stops them working, according to Government actuaries.Most final salary schemes provide some provision for early retirement on ground of ill health, while money purchase schemes leave individuals with only the money they have saved […]

Red face threat for Government

The Government faces embarrassment following the revelation a key part of its financial services bill relating to e-commerce may breach European e-commerce law. The financial services and markets bill makes it a criminal offence to for banks, fund managers and insurers based in other countries to promote services to UK consumers, unless they have been […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment