There has been a huge amount of what I can only describe as ‘hype’ in the popular press and financial magazines over recent months, almost wholly negative, about the practice of employers topping up final salary scheme transfer values to allow members to exercise a real choice in relation to their pension benefits. I wouldn’t wish to suggest that reporting on this matter approaches the worst excesses of the fourth estate (“Freddie Starr ate my Hamster” or “London bus found on Moon” for example) but headlines such as “Bribes offered to quit final salary schemes”1 and “Regulator launches probe into growing ‘cash for company pensions’ scandal”2 certainly leave scope for a more considered and balanced assessment of the issues. Read more »
Archive for February 2007
Final salary pension schemes may have come in for a hard time in recent years, but the employers running them are not as mercenary as media reports would suggest.
Many have come under fire for trying to take a hack saw to their liabilities and cut them on the cheap. However actuarial and consultancy firm Spence & Partners says that providing a clear and structured process is followed there is the potential for a significant win-win solution for employers and their staff. Read more »