UK - Government moves to encourage pension saving must be balanced with help for scheme members who have lost out, Independent Trustee Services says.
ITS – the pension and trustee services arm of Jardine Lloyd Thompson – welcomed the government’s Informed Choices paper but said action was needed now.
Managing director Chris Martin said the government was “sitting on its collective hands” and failing to address the crisis facing the current generation.
He said: “It is long-serving members from the likes of ASW, Dexion and Ballast who are all suffering and who have raised the political profile of the pensions issue.
“Their plight will not be solved by better financial education – it can only be addressed by swift and decisive action now.”
ITS claimed the government’s own proposals for increasing member protection – by amending the “order of priorities” when firms collapsed – seemed no closer to being put into force.
Martin added: “If you are a Ballast member and waiting to find out if you will receive 15% or 50% of your benefits, legislative delays are much more than just a general frustration.”
A handful of industry heavyweights have begun trialling a so-called 'mid-life MOT', with positive initial results reported by all those involved.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.