Seven out of ten occupational pension schemes would still provide indexation and survivor's benefits...
Seven out of ten occupational pension schemes would still provide indexation and survivor's benefits even if the obligation to provide them is removed, says an NAPF survey.
Of the 100 NAPF members questioned about aspects of the Pickering review - which last month proposed to get rid of the requirement to provide index-linking and widow's benefits - 76% and 81% respectively said they would still continue to provide such facilities, countering fears company schemes would slash several features and harm the retirement benefit received by members.
At least 72% of those questioned said the report's proposals would lead to a simplification of the pensions framework, if implemented, however, three out of four schemes also said Pickering proposals do not go far enough in addressing the problems facing the industry.
Commenting on the survey, the NAPF's new chief executive, Christine Farnish (formerly chairman of the FSA's consumer panel) says:
"There is a genuine demand from pension schemes for radical change. The message from this survey is that the Pickering proposals would do much to simplify the pensions regime, but that more must be done to encourage retirement saving.
"It is reassuring that the majority of schemes want to retain the additional benefits which many commentators feared might be jeopardised under the Pickering proposals."
Compulsion was also one of the issues tackled in the survey, however, less than 40% of NAPF members believe the Government would allow employers to make scheme membership compulsory.
If compulsion was allowed, at least 61% of schemes might consider it, says the survey.
Those interviewed for the survey include pension scheme managers, administrators and other people responsible for the running of some aspect of a pension scheme.
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