contracting out

Defined benefit scheme closures driven by the end of the contracting out is a price worth paying to ensure a simple single tier state pension, a leading commentator says.

The Confederation of British Industry is urging the government to introduce a statutory override law to allow schemes to reduce accrual rates to offset the costs of state pension reforms.

More than two-thirds of scheme managers believe the scrapping of contracting-out for defined benefit schemes will lead to further closures to new or existing members.

The Budget rings an effective death knell for private sector provision, argues Michael Bow

LV= is calling for legislation to be drafted, allowing for transfers from defined benefit to defined contribution schemes to continue after 6 April 2012.