Wednesday 9th January 2008
A new study finds that many workplace pension administrators anticipate significant changes in the way their schemes operate over the next four years.
With reforms to the laws governing such schemes due to come into effect in 2012, many employers could be forced to make substantial modifications to their pension provisions, according to research from the National Association of Pension Funds (NAPF).
Up to three-quarters of all workplace pensions in the UK might be affected by the incoming legislation, at a time when NAPF observes "a new equilibrium" is emerging in the pensions market.
Chief executive of the organisation Joanne Segars comments: "While the overall picture shows that the pensions landscape is stable, the operating environment for occupational pensions is tough and likely to get tougher.
"The government must use the pensions bill to bolster current workplace pensions to ensure their future existence for todays and tomorrows workers."
While 62 per cent of pension fund managers surveyed by NAPF expect their workplace schemes to remain open over the next five years, some anticipate modifications to their companies offerings.
And about one per cent of all schemes are expected to close completely - which includes rejecting applications from existing employees.
Some 369 NAPF fund members are included in the survey, which covers £500 billion of UK pensions put in place by 8.7 million Britons.
One of the main reforms predicted by workplace pension managers is the introduction of auto-enrolment, previously highlighted by NAPF as a key issue of the pensions bill.
NAPF claims that auto-enrolment is of equal importance to the launch of personal accounts, with a reduction in the level of regulation imposed on employers completing the three primary aspects of the bill.
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