UK - London Pension Fund Authority chief executive Peter Scales wants council workers to be given a choice over how much they contribute to their pension.
Scales believes that allowing low paid workers to contribute less would ensure more joined the Local Government Pension Scheme – although they would forego some benefits.
A system of “cafeteria benefits” could be adopted in changes to the LGPS due to be announced this autumn by the Office of the Deputy Prime Minister.
But the Local Government Pensions Committee (LG%) is not in favour.
LG% assistant director Terry Edwards said: “If you give people a choice at the outset, history shows that most people will make the wrong decision and it is not until later on that they come back and say ‘if only’.
“If you offer people a lower package, lots will go for that lower package.”
UK inflation unexpectedly rose to 2.7% in August, beating analysts' expectations of a drop to 2.4% from 2.5% the previous month.
The Pensions Advisory Service (TPAS) helped 187,000 people in 2017/18, a 9% fall on the previous year despite setting up special helplines for specific scheme members.
The Liberal Democrat party has passed a motion pledging to cap tax-free lump sums under Freedom of Choice at £40,000 if elected into government.
In a hard-hitting interview with Stephanie Baxter, the former chairman of Carillion Pension Trustees explains why he thinks a blame culture and too much red tape are damaging pensions and why he feels regulators are getting it wrong.