UK - Statutory money purchase illustrations will shock and confuse members, while driving up scheme costs experts claim.
Buck Consultants technical manager Kevin LeGrand said that SMPIs will be an ongoing administration and cost burden for firms and explained that after the initial shock – where members will see how small their pension fund is likely to be – would come confusion.
Many people do not understand how pension schemes work and SMPIs would make this lack of knowledge more apparent - a failing that would have to be addressed by employers, he said.
B&CE Benefit Schemes deputy chief executive John Jory said the task to educate scheme members could be greater than envisaged and warned that any communication must be appropriate to members.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.