Personal accounts pose 'toxic' threat to small firms

The Association of Consulting Actuaries (ACA) says 55% of UK firms with 250 employees or less believe their existing workplace schemes fall short of the Government’s exemption test. According to the study, which surveyed more than 390 small firms, more than 60% also currently pay lower contributions than those proposed for the nationwide scheme. One third of firms expect to reduce their pension scheme benefits or to close their scheme in favour of personal accounts, ACA says, while four in ten small firms with existing or no pension scheme arrangements expect opt-out levels by individual ...