Pensions body calls for laws on pension advice at work to be changed

The National Association of Pension Funds (NAPF) has called on the government to amend the laws on employers giving legal advice in the workplace so that managers are free to discuss pension schemes with staff.

Currently, employers are not permitted to offer individual financial advice, unless qualified to do so, but the NAPF believe legal indemnity should be in place to promote greater understanding of pensions in the workplace.

The NAPF’s Talking Pensions report revealed that almost all of employers (98%) believe amending the legal regime would help to improve communications, while 94% said that clearer guidance from the Pensions Regulator and the Financial Services Authority would help make communication easier.

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Launching the report at the NAPF annual conference, Nigel Peaple, director of policy, said employers were scared to discuss pension arrangements with staff because of the legal restrictions.

“Employers want to help and guide their employees on planning and saving for retirement but fear falling foul of the law,” he said. “The government must examine why employers feel unable to talk about the pensions they offer and be prepared to change the law if necessary.”