Pension lawyers are the biggest group to benefit from pensions simplification, claims Capita Hartshead.
A survey of 109 pension professionals, ranging from consultants, and finance directors to pension trustees, reveals six months after A-Day only one in five believe members are the real beneficiary.
As a result, Capita says, the findings suggest A-Day legislation has failed in its intended objective of benefiting scheme members, and instead 33% of respondents believe pension lawyers are the real beneficiaries.
Research also reveals almost half of the respondents (43%) would like the pension simplification legislation to be further clarified in 2007, with 28% citing a better service for members as their main concern.
Capita says this suggests the burden of implementing the provisions of the Finance Act 2004 and Pensions Act 2004, and the unprecedented amount of scheme rule and procedural change associated, has brought further complexity and confusion rather than simplification.
This survey also reveals 42% of those questioned believe the issue of age discrimination - rules for which came into force for pensions on 1 December - to be the area of least benefit to the pensions industry, while the retirement flexibility provided by the A-Day changes was seen as the biggest benefit by 25% of respondents.
Richard Hardy, pensions operations director at Capita Hartshead, says: “This survey reveals that understanding legislation remains a major concern for the industry at large, and with another pensions act in the pipeline, we will be working with our clients in 2007 to ensure their schemes are best placed to manage this ongoing change.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7968 4558 or email [email protected]IFAonline
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