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Tupe change could widen pension gap

The Government could widen the chasm between private and public sector pensions with rules which give better protection for civil servants.

Under proposals for chan-ges to the transfer of undertakings (protection of employment) legislation, public sector employees in a final-salary scheme who are transferred to the private sector will have to be offered a broadly comparable final-salary scheme. But private staff transferring to another private firm will not get the same level of protection and need only be offered membership of a stakeholder scheme.

First Actuarial director Alan Smith says even if the combined contributions to such a stakeholder scheme were 12 per cent, they would still fall well short of the benefits that a worker would get under their previous DB scheme.

The Government’s mixed messages on contribution levels muddy the waters, says Smith. The Government-appointed employers’ taskforce recommended a combined contribution of 10 to 15 per cent, with employers paying two-thirds but the draft Tupe rules only require employers to pay half this amount.

Smith says: “These proposals will widen the divide between public and ex-public sector workers and their private sector counterparts.”


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Early last summer, when capacity was beginning to reenter the PI market, Collegiate and no doubt other brokers were looking to persuade firms with waivers to consider reentry to the market, taking advantage of the less prescriptive rules laid down by the FSA. A number followed that advice but others have yet to take the plunge.

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Network 300 director Chris Batten has extended an olive branch to ex-members in the wrangle over commission. Batten has pulled together the old Group 300 board – except for Gary Blair – to finalise a peace summit with ex-Network 300 members in an attempt to bring an end to the dispute over commission owed. Ex-finance […]

School’s out

After a flurry of activity a year ago on formulating a public education strategy on investment, all seems to have gone quiet.


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