Pension bill requires 'key decisions'

07 December 2007 / by None
The government's new Pensions Bill does not go far enough to "reinvigorate" workplace pensions, according to the Association of Consulting Actuaries (ACA).

Chairman Ian Farr said that while the ACA welcomed the proposals so far, there wwas more that could be included to promote the development of workplace pensions over personal accounts.

He called for the government to introduce career average schemes to provide conditionally indexed pensions.

"We have highlighted to Government over the last two years how risk sharing schemes could re-build good workplace defined benefit pensions in the UK," he said.

"The deregulatory reform proposals in the present bill simply aren't extensive enough at present."

The bill removed the necessity for employers to designate a stakeholder pension scheme and introduced automatic emrolment of employees into a personal account or other pension scheme.

John Lawson, head of pensions policy at Standard Life, suggested it was obvious the designated stakeholder scheme had failed because employers had not done their duty.

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