Menu
07/11/2013
Govt Sets Out Proposals To Reshape Workplace Pension
The government is setting out a range of proposals to reshape workplace pensions for future generations.
These are designed to create more certainty for individuals, share investment risks more equally, and help employers to keep offering the best possible workplace pensions.
The government committed in the coalition agreement to reinvigorate private pensions.
Defined benefit (DB) schemes have declined rapidly in recent years. The percentage of open schemes has more than halved since 2007 – from 36% to 14% – leaving just 841 schemes remaining open today.
Over the last year, the Department for Work and Pensions has worked closely with employers and the pension industry to explore options for creating new defined ambition pensions, where risk is shared between firms and workers.
These include creating a new legal framework to allow employers to continue to offer salary-related pensions instead of closing their DB schemes; and enable defined contribution pensions that give savers a more certain outcome in retirement.
Minister for Pensions Steve Webb said: "I want people to have the best pensions possible, where risks are shared between employers and their workers. Final salary pensions have been in long-term decline and if we do not act it could disappear altogether. We want to help the best employers offer good alternatives including new forms of salary-linked pensions.
"We have looked at the best pension arrangements around the world and want to give British workers the chance to join such schemes. Our proposals for defined ambition pensions are designed to reinvigorate workplace pensions, providing people with more certainty about what they will get in retirement."
(CD/JP)
These are designed to create more certainty for individuals, share investment risks more equally, and help employers to keep offering the best possible workplace pensions.
The government committed in the coalition agreement to reinvigorate private pensions.
Defined benefit (DB) schemes have declined rapidly in recent years. The percentage of open schemes has more than halved since 2007 – from 36% to 14% – leaving just 841 schemes remaining open today.
Over the last year, the Department for Work and Pensions has worked closely with employers and the pension industry to explore options for creating new defined ambition pensions, where risk is shared between firms and workers.
These include creating a new legal framework to allow employers to continue to offer salary-related pensions instead of closing their DB schemes; and enable defined contribution pensions that give savers a more certain outcome in retirement.
Minister for Pensions Steve Webb said: "I want people to have the best pensions possible, where risks are shared between employers and their workers. Final salary pensions have been in long-term decline and if we do not act it could disappear altogether. We want to help the best employers offer good alternatives including new forms of salary-linked pensions.
"We have looked at the best pension arrangements around the world and want to give British workers the chance to join such schemes. Our proposals for defined ambition pensions are designed to reinvigorate workplace pensions, providing people with more certainty about what they will get in retirement."
(CD/JP)
Related UK National News Stories
Click here for the latest headlines.
07 September 2004
Pensions Secretary quits government
The Work and Pensions Secretary Andrew Smith has resigned from the Cabinet, saying he quit in order to commit more time to his constituency and spend more time with his family.
Pensions Secretary quits government
The Work and Pensions Secretary Andrew Smith has resigned from the Cabinet, saying he quit in order to commit more time to his constituency and spend more time with his family.
20 June 2005
Pensions coalition calls for ‘fair deal’
A new coalition is calling on the new government to deliver a new ‘fair deal’ on pensions. Four organisations – the Trades Union Congress (TUC), Age Concern, Help the Aged and consumer watchdog Which? – have joined together to form the People’s Pensions Coalition to campaign for fair pensions reform.
Pensions coalition calls for ‘fair deal’
A new coalition is calling on the new government to deliver a new ‘fair deal’ on pensions. Four organisations – the Trades Union Congress (TUC), Age Concern, Help the Aged and consumer watchdog Which? – have joined together to form the People’s Pensions Coalition to campaign for fair pensions reform.
17 February 2015
Plans Announced To Make Young People Work For Benefits
The Prime Minister has announced a proposal for 18 to 21-year-olds claiming benefits to do daily work experience. The proposed reform, known as Community Work Programme, would see young people not in work, education or training, required to complete daily work experience, alongside continuing to look for work in order to qualify for benefits.
Plans Announced To Make Young People Work For Benefits
The Prime Minister has announced a proposal for 18 to 21-year-olds claiming benefits to do daily work experience. The proposed reform, known as Community Work Programme, would see young people not in work, education or training, required to complete daily work experience, alongside continuing to look for work in order to qualify for benefits.
17 October 2003
Cutting red tape could save £16m for business: Minister
Measures to cut pensions red tape – and save business up to £16 million a year – were set out by Work and Pensions Secretary Andrew Smith today.
Cutting red tape could save £16m for business: Minister
Measures to cut pensions red tape – and save business up to £16 million a year – were set out by Work and Pensions Secretary Andrew Smith today.
25 August 2003
Government urged to better promote pensions take-up
The Association of British Insurers (ABI) has called on the government to help employers promote stakeholder pensions take-up. According to research from the ABI, 82% of employer-sponsored stakeholder pension schemes remain ‘empty boxes’ with no pensions yet active.
Government urged to better promote pensions take-up
The Association of British Insurers (ABI) has called on the government to help employers promote stakeholder pensions take-up. According to research from the ABI, 82% of employer-sponsored stakeholder pension schemes remain ‘empty boxes’ with no pensions yet active.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
