The Confederation for British Industry (CBI) has announced concerns that Final Salary Company Pension Schemes could come under even more pressure following the proposals of a new Pensions White Paper to force company pension schemes to pay a levy to protect investors with a compensation scheme.
The CBI stress that these proposed increased costs (estimated at £375m)could push many schemes over the edge and force even more scheme closures.
Our view
We understand Government sentiment in that the investor in a pension scheme should have protection. The problem with pensions is that we now have layer upon layer of legislation that affects employers running pension schemes.
Most employees do not really understand the value or benefit that such schemes offer and as such employers may think "What is the point".
New simplification rules, as proposed in the Pickering review, cannot come fast enough.
Are you an employer or employee worried about your scheme? Take advice - visit our Help Zone to find out about all the different ways we can offer advice or guidance.
Learn more about pensions in the Pensions Adviser.com.