Employee Pension Provision: Today & Tomorrow
16 November 2011
Pensions and retirement have been very much in the news. Reports have been issued from varied sources. The Government has consulted on significant reforms to state pensions. A new tax framework for pensions was implemented in April. Changes to public sector pensions are being opposed by trades unions. And ‘auto-enrolment’ takes effect next year requiring even small employers to offer an employment based pension.
People are healthier and living longer than ever before - yet the common perspective is that, financially, this is bad news. Is it time to change the paradigm and think differently about old age and retirement? What role do major companies have in helping employees consider these issues and plan for their own futures? Can living longer and healthier be shifted into the good news story that it should be?
Our report‘Employee Pension Provision: Today and Tomorrow’ has been developed with valuable contributions from PwC, Eversheds, Standard Life. The report has been circulated to members and aims to provide members with:
· The context: the key socio-economic trends, report findings and new legislation
· A view: there are positive angles and practical solutions which could lead to beneficial outcomes - if the various parties all play their part
· Feedback: what our member companies have told us about their current concerns
· A model and some suggestions: for the role of companies in creating a positive environment
· A perspective: on where pensions and retirement now sit within the reward package
· An understanding: of how other parties can also facilitate a positive world of retirement.
Our meeting to discuss and review the report took place on Wednesday November 16th. Chaired by Justin Urquhart Stewart and with speakers including Marc Hommel of PwC, the meeting discussed and debated the way forward proposed by the report, and, in particular, the role of larger companies.
The focus was on the ‘big picture’ rather than technical applications and we urged attendance from our regular PARC members. We also invited relevant representatives from other interested organisations including the NAPF, the ABI and key academic institutions.