potential cost and impact on firms offering DB schemes a concern for providers
Government plans for an insurance fund to protect final salary pension scheme members are likely to prompt many employers to exit defined benefit arrangements. That is the view of Tower Perrin, Clerical Medical and Scottish Equitable, after Andrew Smith, secretary of state for work and pensions, outlined the Government's response to consultation on its December 2002 pensions green paper last week. The pensions protection fund will guarantee members of defined benefit pension schemes receive at least 90% of their accrued pension rights when a company goes bust. A full buy-out clause wil...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes