UK - Employers must ensure effective scheme member communication when contributions are cut or schemes are closed.
Speaking at the Society of Pension Consultants conference last week, financial secretary to the Treasury Ruth Kelly told delegates that the pension system is a partnership based on trust and transparency.
She said: “The worst employers close schemes or cut contributions with little consultation or warning.”
An effective partnership between employers, employees, government and the pensions industry is needed to ensure a resolution to the current problems, she added.
Kelly went on to hint that the focus of the forthcoming green paper will be to encourage people to start saving for retirement earlier.
“People are living longer and they are expecting a higher quality of life. As a society we need start saving earlier, and we need to start saving.”
She added: “To increase the level of pension saving we need to reduce the complexity of the system, minimising the amount spent on the cost of compliance, and maximising the amount that goes in the pensions pot.”
*Centrica chairman Michael Perry told conference delegates employers should not underestimate the value of a good retirement package.
Perry said: “Pensions are a critical part of the reward package.
“It creates a bond over and above the employment contract beyond the time horizon of work itself.”
Females can expect to live a greater number of years in poor health than males, according to data from the Office for National Statistics (ONS) for 2015 to 2017.
Scottish higher-rate taxpayers will benefit from more pensions tax relief than workers on the same salary anywhere else in the UK as income tax bands continue to diverge.
Schemes risk breaking the law and being forced to wind up as The Pensions Regulator (TPR) warns some may be master trusts but do not know so.
As a hectic 2018 draws to an end, Jonathan Stapleton wishes readers a quieter 2019.