Standard Life has launched a scathing attack on ABI proposals to protect existing pensions through contribution caps and limits on transfers for personal accounts.In its response to the Pensions White Paper last week, the Association of British Insurers agreed with the Pension Commission’s proposals for an annual contribution cap of £3,000 a year and an initial ban on transferring in or out of personal accounts. But Standard Life head of pensions policy John Lawson says: “Measures such as contribution caps and preventing transfers are so customer-unfriendly it beggars belief. The idea that putting up barriers somehow protects good existing provision is daft. “Employers will close their schemes or level down because they cannot afford so many NPSS contributions. Petty rules about what pension you can or can’t save in will not make a blind bit of difference.” Standard argues that people aged over 40 in 2012 and earning under £25,000 should not be auto-enrolled into a personal account as its research indicated they would be better off saving in an Isa. Like the ABI, Standard believes that an annual management charge alone would prove unworkably expensive during the early stages of the scheme. It proposes levying 5 per cent on each contribution, which Lawson says would be cheaper than a 0.7 per cent annual charge. An ABI spokesman said: “If others have suggestions for better ways to maintain the existing pension market, it will be useful to have these as contributions to the debate.”
The Department for Constitutional Affairs has chosen Staffordshire County Council Trading Standards to supervise the regulation of claims management services nationwide.SCCTS will run the monitoring and compliance unit for the regulation of claims handlers for the DCA as a separate project from its more traditional role with a ring-fenced budget of less than £1m.Speaking this […]
A cautionary tale about people’s desperation to get on the property ladder
HBSC backs personal accounts, auto-enrolment and mandatory employer contributions but it says a minimum contribution of 8 per cent of band earnings is insufficient and argues that minimum contributions should be increased over time. It says socially respon- sible funds should also be available.
The Council of Mortgage Lenders is warning members to protect consumers by treating unregulated mortgages as if they are regulated when borrowers fall into arrears. Its guidance, which Money Marketing has been shown, says members must inform customers on which basis their arrears are being treated. If a non-regulated mortgage is being treated as a […]
Following George Osborne’s delivery of his sixth Budget as chancellor and the last of this current parliament, we have provided a brief overview of the initiatives put forward in his statement, focusing on the topics that have an impact upon the pensions landscape, savings, personal taxation and businesses.
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Fiducia managing director on ‘good old-fashioned’ customer service in the digital world Anthony Scott is adept in the art of communication. As an adviser and a novelist (he has written the novels ‘On Ashover Hill’ and ‘The Birthday Gift’) it is crucial for the Fiducia Group managing director to engage and build a rapport with […]
The FCA has reiterated its warnings that advisers outsourcing defined benefit transfer advice to firms with relevant qualifications cannot divorce themselves from responsibility for the eventual recommendation. While existing FCA rules require additional qualifications to advise on DB transfers, and the FCA has written to all firms who have DB transfer permissions as part of […]
The Liberal Democrats have branded the government’s decision to delay a pot follows member pension system “incompetent”. The Liberal Democrat spokesman for work and pensions Stephen Lloyd MP says the move by pensions minister Guy Opperman shows how “rudderless” the current government is on pensions policy. Last October Opperman suggested the pot follows member initiative […]