UK - Watson Wyatt is urging the government to give employers more freedom and flexibility in how they choose to run their pension schemes.
The consultant also stressed that trustees should be given “appropriate powers” to protect the interests of pension scheme members.
Watson Wyatt partner Colin Singer said: “The current regime imposes so many burdens on employers that they are cutting back on pension provision.
“The regulatory regime has also led to the ossification of some pension schemes.”
Watson Wyatt proposes a regime that would give employers more choice about the type of benefit promise they offer and more control over the costs of running defined benefit schemes, including risk-sharing with employees.
Watson Wyatt believes the state should provide a safety net benefit aimed at lifting pensioners out of means testing while the state second-tier pension should be scrapped.
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