UK - NAPF CONFERENCE: Pension schemes are becoming more aligned to flexible benefit programmes because of the migration to defined contribution, a leading consultant argued.
Jardine Lloyd Thompson head consulting practice Neil Brennan told delegates DC schemes can be intergrated into a flexible benefits plan with greater flexibility as individual contribution levels are not fixed.
Brennan said getting the IT and systems structure right is imperative to making sure DC scheme works smoothly with flexible benefits packages.
He added that having the pension scheme run through a flexible benefits programme can also help manage the government’s proposed £1.4m lifetime pensions cap.
Those people who are not able to put any more money into a pension scheme can use a flexible benefits plan that allows them to get some kind of compensation through their employer such as a share scheme or deferred compensation, Brennan added.
The Next Generation Pensions Committee is on a mission to promote and encourage younger voices in the industry. Kim Kaveh looks at its key objectives
This week's top stories included an analysis finding the cost of equalising guaranteed minimum pensions in schemes could hit FTSE 100 profits by up to £15bn.
Employers whose dividend to deficit recovery contribution (DRCs) ratios fall outside the "normal range" should expect to see higher regulatory scrutiny, although no fixed ratio will be set.
Investment consultants and fiduciary managers should expect a final decision on the investigation into the market to be published by the end of the year, the competition watchdog says.