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
  • November 2013
11

Employers endorse defined ambition shift, ACA poll finds

Open-access content Friday 8th November 2013 — updated 5.13pm, Wednesday 29th April 2020

Employers and pension schemes have backed some of the principles underlying defined ambition pensions, according to a survey conducted by the Association of Consulting Actuaries

The survey results emerged as the Department for Work and Pensions published a consultation setting out its thinking on how alternatives to defined benefit and defined contribution schemes.

Over 430 pension schemes and 308 employers were polled. This revealed that larger firms - those with 500 or more employees - said they would back legislation that would permit the following scheme designs: core DB schemes with no requirement to index benefits on an annual basis; an option to convert leavers' benefits into a DC scheme; and the ability for employers to adjust scheme pension ages in line with the state pension age or another objective index.

Smaller employers expressed no review on DA ideas that sought to retain an element of defined benefit, but said scheme membership and pension contributions would be 'significantly' more if DC schemes secured a guaranteed pension income building up year by year. 

A clear majority of employer's support a fixed-term pension enabling retirees to draw an income from a small pension pot over a few years rather than converting their pot into what might otherwise amount to a small monthly or annual retirement annuity. But a significant number of employers felt that a fixed-term pension should be restricted to only those retirees who defer their state pension. While others said such a facility should not be available to those retiring earlier than state pension age.

Sixty per cent of employers said that they were opposed to the government taking a role in encouraging consolidation of schemes in the pensions market, with smaller firms most strongly opposed to such an initiative.

Over three-quarters of larger employees said they would not offer a multi-employer scheme, whereas three-quarters of smaller employers agreed that a decision to opt for a larger multi-employer arrangement was either likely or possible in their circumstances.

Commenting on the findings, ACA chair Andrew Vaughan said: 'This survey gives both encouragement and an early indication of the degree to which employers of different sizes agree with the defined ambition flight-path.' 

Vaughan said it was vital that the government 'act quickly and decisively to put a legislative and tax framework in place that would enable such schemes to become reality'.

The DWP consultation closes on December 19.

This article appeared in our November 2013 issue of The Actuary.
Click here to view this issue
Filed in:
11
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