CBI calls for public sector pension reform

clock

The Confederation of British Industry (CBI) has called for a shift to a ‘notional defined contribution' model - effectively pay-as-you-go DC - to tackle the £1trn unfunded public sector pensions deficit.

The business lobbying organisation says an independent commission should investigate the costs of taxpayer funded benefits and establish the principles for reform. The CBI's final report on pensions before the May 6 election - ‘Getting a grip: The route to reform of public sector pensions' - urged the commission to opt for the pay-as-you-go defined contribution model successfully pioneered in Sweden 15 years ago. Under notional DC schemes, members and their employers pay contributions calculated on pensionable earnings, which are then put in personal accounts. This money is not ex...

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

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •

Police launch investigation into mortgage middleman fined £1m

West Midlands Police have launched a fraud investigation into a Birmingham financier over his role in sale and rent back agreements.

clock 25 June 2013 •