Sensible Pension Reforms But Defined Benefit Employers Must Be Protected
15 January 2013 in Chamber News
Commenting on the White Paper on pension reform, published today by the government, Dr Adam Marshall, Director of Policy and External Affairs at the British Chambers of Commerce (BCC) said:
"Today’s announcement will bring welcome simplification for pension savers and parity for the self-employed, who were previously ineligible to top-up state pensions. These reforms support the rollout of automatic enrolment, providing certainty about the size of the state pension and creating a much-needed incentive for individuals to save privately.“Employers will also be reassured by the Government’s commitment to make the administration processes of ending contracting out as simple as possible, and not to undermine defined benefit schemes. The plan to allow employers to change scheme rules to compensate for the loss of the National Insurance rebate without trustees’ consent is a sensible and necessary solution. Employers with defined benefit schemes will not accept these reforms if they end up disadvantaged."