UK - Employers have outlined a range of measures to help restore confidence in the pensions industry and avoid widespread pensioner poverty in the future.
The Confederation of British Industry’s 22-point plan – Securing our future – includes restoring the National Insurance rebate for contracting-out, urging firms to consider hybrid schemes as an alternative to money purchase provision and raising the state pension age to 70.
The CBI pointed out that while the Pensions Bill was “about protection for employees and consumers, employers needed their confidence rebuilding, too”.
Unilever UK chairman and CBI pensions strategy group chairman Richard Greenhalgh said: “The UK’s voluntary approach must be reinvigorated and we are confident it can be. That means employers, government and individuals recommitting to pensions and each accepting their responsibilities.”
The CBI report accepts that employers must do more on pensions and in what it admitted would make “challenging reading for its own members”, its first recommendation states: “All employers who can afford to, should make pension contributions when their employees also contribute.”
It also recommends an automatic scheme opt-in for new employees.
Its most controversial recommendation is that the state pension age should be raised to 70 over the decade from 2020 and 2030.
This, it says, will help fund a more generous state pension for the large number of low paid people who are presently saving little for their retirement.
A former energy and climate change secretary has said that by continuing to invest in fossil fuel firms, pension schemes are just making the climate change crisis even worse.
The Royal Mail Defined Benefit Cash Balance Scheme (DBCBS) has ended its first full-year with a £9m actuarial surplus, the company says.
The Salvus Master Trust has launched a mobile app for members after employers revealed they wanted their members to have more access to online tools.
A rise in UK inflation back above the Bank of England's 2% target rate will not change the thinking of its Monetary Policy Committee with regards to interest rates, experts have said.