The Employer TaskForce on Pensions, chaired by Sir Peter Davis, has just published its report and recommendations into the pension industry.
Note that this report was commissioned by the Department for Work and Pensions. It is a DIFFERENT report from the Pension Commission's report published a couple of months ago (see bulletin 12/10/04), in respect of which recommendations are awaited next year, and is far less controversial.
The report makes a number of recommendations to employers, employees, unions, the financial services industry and the Government.
For employers:
- To recognise they have a responsibility to help fund the pensions of their employees
- To aim to achieve over time combined contribution levels of around 10-15%, with employers ideally providing 2/3 of this
- To recognise the importance of maintaining fairness in the shift from Defined Benefit to Defined Contribution (or other) schemes
For the Government:
- To provide a stable, long term framework for UK pensions with clear guidance on who should be saving, and achieve a broad policy consensus on the way ahead
- To provide stability for medium and large employers by maintaining current levels of financial support for pensions
- To tackle the challenge of pension provision among smaller businesses by introducing a new targeted financial incentive to encourage employer contributions.
For employees:
- To take responsibility for their own pension provision and contribute to their pension schemes
- To recognise employer support for pensions as a key benefit
For unions:
- To promote awareness of the need to save for retirement among their members
- Encourage their members to join good occupational pension schemes and to make contributions
For the financial services industry:
- To work with Government to review the annuities market
- To provide better service especially to smaller businesses
The report is not yet on the internet, but should be available shortly on the Pension TaskForce's website.
Website of the Employer's TaskForce on Pensions
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