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.
An innovative funding structure has been agreed for Croydon Pension Fund. However, there are some concerns about the arrangement. Stephanie Baxter reports
Some 52% of red flags raised by schemes on suspected scam pension transfers involve advisers or unregulated introducers, a report by the Pension Scams Industry Group (PSIG) has claimed.
The Norfolk Pension Fund has been successful as the lead plaintiff in a class action case that went to jury trial in California involving securities fraud.