UK - Companies could be forced to abandon their defined contribution schemes entirely should the Pensions Regulator go ahead with its plan to impose regulation on the industry, Aon Consulting has warned.
Pension Regulator CEO Tony Hobman yesterday called on the industry to tackle the risks inherent to DC schemes.
He highlighted poor administration, unduly high charges and a lack of member awareness as some of the key concerns.
Aon DC head Paul Macro said Hobman’s statements had done little to encourage employees to join DC schemes in the first place, and added:
“It looks like the regulator is going to press ahead with his imposition of regulations onto DC schemes. In too many cases this could have the effect of forcing companies to abandon pension provision completely, remember over regulation takes much of the blame for the demise of defined benefits.”
He concluded that best practice guidelines would be more preferable than excessive regulation.
Ex-BHS owner Dominic Chappell has been ordered to pay a total of £87,000 in fines and court costs after he was found guilty of failing to provide The Pensions Regulator (TPR) with information.
The Department for Work and Pensions (DWP) has said it while believes in the benefits of consolidating defined benefit (DB) schemes, there are significant issues to overcome.
There is just one week left to register to enter the Workplace Savings and Benefits Awards 2018.
Nearly a third (32%) of employers believe new technologies, such as augmented and virtual reality, will play a part in benefits communications, latest research from Aon Employee Benefits reveals.