LV= gives mixed blessing to Government pension plan
LV= has welcomed the Government’s decision to abolish contracting out pensions on a defined contribution basis from 6 April 2010.
Following an official submission to the Department of Work and Pensions, LV=’s head of pensions, Ray Chinn, has stated the firm’s broad support for the Government’s draft legislation.
However, Chinn has raised concerns over a consequence of the new legislation, which would stop most transfers from defined benefit schemes to defined contribution schemes.
Chinn has said that the firm is uncertain whether this intended by the Coalition Government, or whether future legislation would amend the state of affairs, a course of action LV= strongly supports.
LV= highlighted a number of situations where such transfers should be permitted, including ill-health, as grounds for their support.
Last month the firm offered qualified support to the Government for its removal of the requirement to annuitise by age 75.
However, LV= stated that such a move, whilst good, would only work properly if there is a flexible alternative to enable people to realise retirement income from a pension fund.
Category: Insurance News, LV= News
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