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11-Apr-08 10:48 [Pensions]
Employees to lose pension schemes due to personal accounts When the government introduces its new personal accounts in 2012, more than 300,000 employees will lose their existing pensions scheme benefits, according to new research.
A report from Fidelity International has suggested that seven per cent of pensions schemes could be closed down when the new system is brought in.
Simon Fraser, president of Fidelity's investment solutions group, said: "The government's original intention for personal accounts was to complement rather then compete with existing provision, but our findings reveal that this will not be the case."
The survey also revealed that 11 per cent of finance directors who responded, said that they would be keeping their existing employees in a company scheme, but they would not be allowing newcomers access to it.
In related news the National Association of Pension Funds has said that the personal accounts will have a longer lasting effect than the London Olympics, which are in the same year.
The Association of British Insurers (ABI) has told of its agreement with the decision of the government to not introduce a higher contribution cap in the first year of personal accounts.
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An independent pensions adviser has stated that the pension crisis has deteriorated in recent times, with private schemes being hit.
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The Pension Protection Fund (PPF) has announced that it rescued a further four pension schemes during the month of September.
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