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.
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This week's top stories included an analysis finding the cost of equalising guaranteed minimum pensions in schemes could hit FTSE 100 profits by up to £15bn.
Employers whose dividend to deficit recovery contribution (DRCs) ratios fall outside the "normal range" should expect to see higher regulatory scrutiny, although no fixed ratio will be set.
Investment consultants and fiduciary managers should expect a final decision on the investigation into the market to be published by the end of the year, the competition watchdog says.