More than 90 cent of employers believe Government plans to simplify pensions
outlined in its Green Paper are inadequate and will not encourage greater
occupational pension provision.
This is according to the Association of Consulting Actuaries (ACA) survey,
Pensions Reform: too little, too late?, which also reveals that 68 per cent of
the 336 firms polled feel the plans will ease administration.
The survey – released to coincide with the closure of the Green Paper
consultation – finds that 95 per cent of employers think the Government needs
to also review state pension provision if it wants to help people to save
effectively for retirement.
The findings show that in the last six months, 29 per cent of employers have
reviewed their pension arrangements and 17 per cent have closed their final
salary pension scheme to new entrants.
ACA chairman Gordon Pollock said he was disappointed that fewer companies
are now offering occupational pensions.
Changes in pension arrangements
Over 5 years to
Aug 2002 In last six
Closed final salary scheme to new entrants 46% 17% 63%
Closed final salary scheme to future accruals 9% – 9%
Moved more employees onto money 14% 8% 22%
Source: Association of Consulting Actuaries