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19-Feb-08 11:10 [Pensions]
Government issues pensions warning Companies will continue to close their final-salary pension schemes, it has been claimed, unless the government accepts an amendment to the pensions bill.
The Association of Consulting Actuaries claims that the removal of the ban on conditionally indexed pensions will help employers' cap their future costs in providing such scheme
According to the association, without this change, employers will have no credible option other than defined contribution schemes after closing their current arrangements in the run up to the new system in 2012.
Ian Farr, chairman of the ACA, said: "If the 'conditional indexation' amendment is rejected by the bill committee - and we see no reason why a political consensus should not embrace this initiative across the parties - then parliament will be held responsible for what is likely to then occur."
He added that in this situation, the totality of longevity and investment risks would fall on the vast majority of employees in the private sector.
The Financial Times recently reported that the government would resist moves from the Conservative Party to make it easier to create pensions based on average career earnings rather than final salary.
New York's attorney-general Andrew Cuomo has urged executives of top companies to forgo their bonuses for the year, it has been revealed.
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The Department of Work and Pensions has announced the feedback from a study carried out to understand how to better facilitate feedback from the country's pensioners.
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Low and middle-income earners must be the target of a range of tax cuts if the government wants to stimulate the economy in the pre-Budget report, a major industry organisation has said.
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