07 May 2009
The ACA has called for all areas of the pensions industry to
support "middle-way" pension schemes, which sit between the current
DB and DC models.
Keith Barton, Chairman of the ACA, commented:
"Our challenge, as leaders in pensions, is to design pension
arrangements which are attractive enough for employers to see the
value in offering them and for individuals to want to join. For
employees, these arrangements need to offer reasonably predictable
levels of retirement income and not be subject to excessive
volatility.
"And for employers there must be some greater flexibility than
at present so they feel confident that sponsoring such arrangements
is sustainable over the longer-term so that offering a scheme won't
become a millstone that threatens the ongoing business, its
employees and shareholders.
"Some changes to existing pension schemes that reduce ongoing
costs allowing those schemes to continue have occurred, but the
changes possible under current legislation are restrictive and
often lead to complex 'ways around' the rules rather than offering
a range of flexible, straight-forward middle-way designs. Because
of these restrictions, the number of scheme closures far exceeds
the number of revisions under current rules".
The full press release can be viewed here:
ACA Chairman calls for middle way pension
solutions
