US EditionMillions of Pensions at Risk From Savings Raid
- The Pension Schemes Bill, which aims to introduce pension reforms in the UK, is being promoted by Chancellor Rachel Reeves alongside the Secretary of State for Work and Pensions, Liz Kendall.
- The reforms come after a period when low interest rates caused defined benefit pension schemes to fall into deficit, leading sponsoring employers to contribute substantial funds to address the gaps.
- The proposed rules would allow employers to extract surplus funds from pension schemes, which critics argue could undermine the financial cushions protecting members in economic downturns.
- The Department for Work and Pensions’ detailed impact assessment highlights that the proposed reforms could negatively affect members by raising the risk that they may not receive the full value of their pension benefits.
- These reforms could jeopardize the retirement benefits of around nine million members by increasing the risk that pension schemes become insolvent and fail to meet their payment commitments.
7 Articles
7 Articles
The Baden-Württemberg Regional Social Court makes a controversial judgment. This could have a decisive impact on the future care of relatives.
Millions of pension savers at risk of missing out on full retirement payouts, DWP admits
The Department for Work and Pensions' impact assessment has acknowledged that its pension reforms could place nine million savers at risk, according to its own impact assessment. The admission reveals that proposed changes would permit companies to extract surplus funds from defined benefit pension schemes.Civil servants have warned that these reforms could result in more schemes running out of money, potentially leaving them unable to meet thei…
The fate of next year's indexation of pensions and annuities is at stake. The government has begun work on the budget act, which will include macroeconomic indicators. It is possible that in 2026 the increase in benefits for seniors will be similar to this year's increases.
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