UK - Scheme protection needs to be the top agenda on pension reform, OPAS has told the government.
The pensions advisory service’s response to the Green Paper proposals believes new legislation to protect members is vital if the government wants to bridge the £27bn savings gap.
OPAS warned of the “misery, distress and anger” that a shortfall in funds caused and said this “uncertainty” could drive people away from investing in pensions.
OPAS chief executive Malcolm McLean said: “People are being increasingly deterred from saving for retirement, whether through company arrangements or private pensions, due to a growing perception that the schemes available to them are unsafe.”
OPAS backed proposals to scrap the minimum funding requirement in favour of scheme-specific funding, which would dictate an employer’s liability to a scheme in wind-up.
Employers should not be allowed to walk away from their full liabilities and offer something else, McLean added.
Investors, driven by depressed interest rates, slower global economic growth and rich equity market valuations are examining non-traditional investment opportunities.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up