UK - Consultants are urging the Financial Services Authority to give pension funds clearer guidelines on how to communicate with staff.
The Society of Pension Consultants has told the FSA that, in the current litigious environment, employers are scared to give out scheme information for fear of being sued by their staff or fined by the FSA itself.
It stressed company pension schemes are valuable recruitment, retention and morale-boosting tools if employees are given better information.
But to encourage companies to actively give out this information, there needs to be clearer guidelines on communication.
SPC president Donald Duval said: “Employers should be encouraged to speak about their pension schemes, but to do so they need protection from legal action by staff or the FSA.
“The FSA, in turn, needs to make it clear what companies can and can’t do.”
Duval said firms should be able to communicate the benefits of pension schemes to staff without fear of reprisals, and this would improve take-up of occupations pensions.
Duval explained: “The take-up of work pension schemes can vary dramatically, even between apparently similar companies.
“It should be made easier for them to talk to staff about their pension schemes, for the benefit of all.”
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