UK - More than three-quarters of employer-sponsored stakeholder pension schemes remain "empty boxes", research by the Association of British Insurers shows.
The ABI’s’ detailed analysis of the stakeholder pensions market – Stakeholder Pensions: Time for Change – shows that while 350,000 employers have designated a stakeholder scheme, only 18% have any members and just 13% of employer-based schemes have employer contributions.
ABI director general Mary Francis said action was urgently needed to help employers better promote pensions take-up. She added: “We know that active employer involvement in pensions works.
“That is why we are recommending a programme of employer action to boost pensions take-up.”
The ABI has proposed a five-point employer action plan to be taken up by the government’s employer taskforce headed by Sir Peter Davies.
The action plan includes proposals for a government-led programme to encourage employers to promote schemes, practical information packs and helping employers to meet the costs of advice through a workplace advice tax credit.
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.
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There will be "many flavours" of defined benefit (DB) consolidators but consolidation will only be the right answer for a minority of schemes, Alan Rubenstein says.
Work and Pensions Committee (WPC) chairman Frank Field has questioned the regulator on what lessons it can learn from the experience of the Kodak Pension Plan No.2 (KPP2).