UK: TORIES PROPOSE NEW PENSION PROVISIONS
Article Abstract:
David Willetts, the Conservative Party spokesman on social security, has unveiled radical pension proposals that could result in up to 7mn people opting out of basic State provision. Under the proposals, anyone aged under 30 and working could opt for an annual payment of approximately GB[pound] 500 from the government which would be invested in a private or occupational pension. The payment would be in lieu of National Insurance (NI) contributions towards a basic pension and the state earnings related pension (SERPS). Willetts estimated the proposal could allow a person to double his/her pension provision from the basic GB[pound] 67.50 per week to GB[pound] 130. Pension industry figures estimate the proposal would involve the Treasury paying out around GB[pound] 900mn per annum, and could help to address the problem of people aged under 30 who currently pay NI contributions but might not receive a State pension when they retire because the burden is so great. Some analysts warned that whilst the initial proposals sounded attractive the offer could become less attractive if future governments were less generous.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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UK: CALL TO ABANDON MFR
Article Abstract:
It is thought that the head of the UK government's Review of Institutional Investment, Paul Myners, will recommend that the Minimum Fund Requirement (MFR), an insolvency standard for pension funds, be scrapped. Mr Myners feels that the establishment of final salary schemes has been adversely affected by the introduction of the MFR, which is also seen as promoting conservative investments. It is understood that Mr Myners favours an insurance scheme for pensions based on the Pensions Benefit Guaranty Corporation model adopted in the US.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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Stakeholder or stay put? That is the burning question
Article Abstract:
Advice on whether to switch to a new stakeholder pension from an existing pension scheme is presented. It is suggested that most employees will benefit from remaining with an existing personal pension plan, or creating a stakeholder pension in their own name, if their employer does not contribute to stakeholder.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2001
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