Purnell launches risk sharing consultation
A consultation paper looking at how employers can continue to maintain good occupational pension provision through greater risk sharing is published today. The DWP is asking for views from stakeholders on whether the Government should amend pensions law to allow new types of pension schemes which would more evenly share risks between the employer and the individual. These risks include investment performance and increasing life expectancy which can make pensions more expensive for employers to fund. The department is also seeking views on whether greater risk sharing could be accommodated without major changes to the existing legislative framework. Secretary of State for Work and Pensions James Purnell said: "We know that providing defined benefit pensions can be expensive for employers and we want to explore how risk sharing can help them to continue to provide good schemes. "We want to encourage innovation and growth in the market. But we also need to strike a...
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