View more on these topics

Thousands face exclusion from stakeholder

Pension experts warn the Government risks excluding a huge chunk of its

five million stakeholder target market through its new regulations.

They claim that hundreds of thousands of employees could miss out on

pension provision because their employers have become exempt from

stakeholder as they have an occupational scheme.

But because the employee had previously refused to join the scheme, the

employer may refuse to offer them the chance to join the scheme in the

future.

This could lead to thousands remaining unpensioned, defeating the

Government&#39s primary stakeholder objective of increasing pension provision

among the employed.

Under the Department of Social Security&#39s final regulations, companies are

now only required to make some form of pension available to their

employees. If they offer an occupational scheme, they can become exempt

from the burden of setting up an additional stakeholder scheme.

There is no obligation for them to re-offer membership of the scheme to an

employee who initially refuses to join.

Providers are calling on the National Association of Pension Funds to urge its members to re-open their plans to these employees but the NAPF says this must be down to the individual scheme.

Technical manager David Astley says: “Different schemes have different

philosophies over whether to give employees a second or even third chance

to join their scheme.”

Scottish Equitable pensions development manager Steve Cameron says: “This

appears to create a huge gap in the Government target to get those without

pensions into pensions.”

Recommended

Alien notion

Investment regulation in the professional markets has been turned on itshead with the FSA rejecting the Law Society&#39s bid to keep its regulatoryrole on investment business.The brave new world which lawyers involved in investment business must nowface is an alien one. The style of monitoring by the FSA will be radicallydifferent to that of the […]

Exam revamp could raise FPC standard

A major shake-up of IFA exams could see FPC status become more difficult to obtain.Raising the standard for the Financial Planning Certificate is one of theoptions being considered by the FSA and CII in a revamp of the system. Theyare also looking at the possible introduction of an exam between FPC andAFPC or breaking AFPC […]

Investment managers to launch new fund supermarket

Four of the UK&#39s biggest fund managers have combined to create a new independent fund supermarket company.Jupiter, Gartmore, Threadneedle and M&G have each invested £5m to create a new IFA-based supermarket to be launched in November.The new firm, called Consolidated Funds Limited, will be run by an independent board, but funded by capital from the […]

Free-standing review shakes IFAs

At first sight, the newly launched review of FSAVCs is not as limited asit was set out to be.The finalised plans include a catch-all clause which says that anyone whowants a review of their top-up policy can request one.This extends the review beyond the categories which were originallyidentified as high-risk and has sparked fears of […]

The fifteen-year itch

By Neil Jones Technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The treatment of non-UK domiciles that are resident in […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment