UK - UK pension funds are way off track in meeting government requirements to issue integrated state and company benefit statements, Pensions & Actuarial Services claims.
The DWP is pushing for all benefit statements issued after April 6 next year to include an illustration on future benefits, accounting for inflation, accumulated benefits and rebates.
But Pensions & Actuarial Services director Jim Bruce claims the industry has not taken it on board yet”.
He explained that companies have to be in a position where they can provide their staff with a “real” account of their retirement funds – a figure taking into account future inflation, state benefits and a 7pc return on investment into the fund.
“Stakeholder, DC, DB... will all have to provide annual statements, most of these schemes haven’t had to do this in the past.”
By 2003 each benefit statement must be produced on a yearly basis and by 2004 it will be necessary to integrate state benefits into the report. A target of 2005 has been set by the government to have all individual benefits included in each company’s pension statement.
Bruce, though, is sceptical about firms meeting these deadlines and said that “faced with the pressures of cost and a challenging timetable, we’re not going to get there in the next 12 months”.
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