Personal accounts could lead to "pensions apartheid" as entry into good existing occupational schemes is restricted by employers following the introduction of auto-enrolment, claims the Association of Consulting Actuaries.
The first report in ACA’s ‘2007 Pension Trends Survey’ reveals while 59% of employers believe the State pension reforms currently passing through Parliament will provide a better platform on which to build private pension provision, there are doubts about both personal accounts and policy on occupational pension schemes. The survey of 336 employers - representing scheme assets of £127bn and more than 2.1 million members – reveals 68% expect personal accounts to lead to levelling-down of employer pension contributions. In addition, 76% of respondents believe the private sector reforms, sc...
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