UK - NAPF chief executive Christine Farnish has attacked employers for following "herd behaviour" and shutting final salary schemes to new members.
Farnish told the NAPF”s autumn conference that too many employers had made a “knee-jerk lurch” from final salary to money purchase provision.
Farnish said: “It is important to educate employers about the options available and the pros and cons of different alternatives.
“We have seen too much herd behaviour in the last year in the knee jerk lurch by some from DB to pure money purchase.”
She also called on the government to admit that its own policies had caused many of the industry’s problems.
She asked: “Which politician is brave enough to admit that some of their own party’s policies are partly the cause of the problem?
“Considerable bravery is required of politicians if our pensions problems are to be tackled effectively. It is no good saying take pensions out of politics. Pensions are all about politics.”
But Farnish’s views were attacked by EMAP group benefits manager Ralph Turner – who previously warned the NAPF at its Brighton conference that it must embrace DC or face it withering away alongside DB schemes.
Turner said Farnish’s speech indicated that the NAPF was set on remaining the “defined benefit preservation society”.
He urged: “The NAPF should take a more honest and open approach as DC is a better approach for many employers.
“I would hope that they would support any employer who offers any kind of occupational scheme rather than ones who offer one type of scheme instead of another.”
This week's edition of Professional Pensions is out now.
Ben Gunnee reflects on 2018 and talks about the Fiduciary Management trends to keep an eye on in 2019
Lloyds Banking Group secured 630,000 new pension customers last year, according to its 2018 annual results.
Guy Opperman has rejected calls to speed up changes to auto-enrolment (AE) despite increasing pressure to boost contribution rates and overall savings pots.