UK - Government plans to remove the requirement on schemes to offer additional voluntary contributions could deter savings, experts warn.
The move was outlined by work and pensions secretary Andrew Smith as an amendment to the Pensions Bill.
Watson Wyatt senior consultant Andy Parker said the plans had the potential to change the pensions landscape but it was too early to predict how trustees and members would react.
He said: “There have been suggestions that this will signal the end of AVCs but trustees will still have to maintain the existing arrangements for payments made up until April 2005 and may decide it is worth continuing to offer something going forward.”
Mercer Human Resource Consulting actuarial researcher Jonathan Lawlor said the complexity of the options for members may act as a deterrent to saving.
Ex-BHS owner Dominic Chappell has been ordered to pay a total of £87,000 in fines and court costs after he was found guilty of failing to provide The Pensions Regulator (TPR) with information.
The Department for Work and Pensions (DWP) has said it while believes in the benefits of consolidating defined benefit (DB) schemes, there are significant issues to overcome.
There is just one week left to register to enter the Workplace Savings and Benefits Awards 2018.
Nearly a third (32%) of employers believe new technologies, such as augmented and virtual reality, will play a part in benefits communications, latest research from Aon Employee Benefits reveals.