Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • March 2012
03

Webb wants to get people excited about pensions saving

Open-access content Friday 23rd March 2012 — updated 5.13pm, Wednesday 29th April 2020

Pensions minister Steve Webb has outlined how he plans to make 2012 ‘a year where we need people to get excited about pensions saving’.

2

The introduction of a 'flat, simple state pension' announced in the Budget on Wednesday was the first phase of a plan to 'reinvigorate occupational pensions provision', he said, speaking at the Pensions Management Institute's spring conference yesterday.

This would also involve the gradual removal of 'baffling' State Second Pension calculations and the 'lingering' contracting-out legacy. Auto-enrolment would then help the 10 million people currently without pension provision achieve retirement benefits above the basic minimum, he said.

Mr Webb also highlighted the risk-sharing options which could make retirement savings more attractive. 'Whilst the decline in defined benefit membership cannot be simply reversed, does the industry have to swing all the way to pure defined contribution?' he asked.

In particular he highlighted alternatives such as cash balance schemes, capped DB schemes and 'DC plus' arrangements. The latter involves the employer bearing some investment or inflationary risk on behalf of the scheme member.

Mr Webb also said he would be researching models found in European countries such as The Netherland and Denmark, to see if they can be applied in the UK. He said his intention was not to 'create a regime of legislation that states what employers must do, but one that provides guidance for employers to take up an option that suits them - with certain guidelines'.

He explained that, with member encouragement a key focus, 'the system should not be so rigid that employers are unable to provide some level of certainty about the kind of benefits their members could expect to receive'.

PMI chief executive Vince Linnane welcomed Mr Webb's commitment to bring further stability and certainty to the UK pension market.

'We focused this conference on the issues that the PMI sees on a daily basis ahead of a big year for the industry, so it is encouraging to have these statements from the Government supporting positive reform and simplification for the benefits of existing members and those wanting to begin their own retirement savings,' he added.

This article appeared in our March 2012 issue of The Actuary.
Click here to view this issue
Filed in:
03
Topics:
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Underwriting Risk Manager

London (Central)
£85K-£95K + Benefits
Reference
124386

Reserving Manager (Contract)

London (Central)
£1200 - £1400 per day
Reference
124385

Life Actuary - Contract - IFRS 17 Financial Impact

England, London / England, Bristol / North Yorkshire, England
£900 - £1150 per day
Reference
124384
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2022 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ