It wouldn’t be a ’start of the year’ without a few predictions so Mystic Jens has been gazing into her crystal ball and has seen the future…mind you, she was still a little the worse for wear at the time so please do not take any of these suggestions seriously…until they come true that is!!!
First, a bit of a no brainer – there will be even fewer Defined Benefit schemes by the end of 2010 than there are now.
The new Tory Government will announce a review of pension provision with particular focus on the Personal Accounts Regime due for introduction in 2011..er…2012…er whenever…!!
The Review will conclude that ” something must be done” and orders a further review chaired by the wonderful Steve Bee which will in due course decide what that will be, In the meantime, Personal Accounts will be introduced in a modified form resulting in over 300 sets of regulation. This will be called ‘Interim Pension Simplification’
The Pension Regulator will be abolished to be replaced by ‘The Regulator of Pensions’. This will be based in Brighton with the same management as before and the rebranding will cost the taxpayer around £1.5 million However, performance and regulation will in no way improve though the new logo wins a design award.
Defined Contribution Schemes will become the norm but employer contributions will reduce to the minimum level required by the modified Personal Accounts Regime. Since in order to help the economy, employers will no longer need to contribute to Personal Accounts, this will be absolutely zero. All DC schemes will therefore also be rebranded into something called a ‘Personal Account’
The British economy once again collapses having invested the national debt into an iffy Ponzi scheme run by a 4 year old in Stevenage. Several large DB schemes that had some sort of company attached to them will go to the wall. This will put the PPF into meltdown.
On a happier note, pension lawyers will continue to advise hard pressed Trustees and those employers who have survived the crash on the ever growing complexities of the law.
Some things never change…
Jennie advises large multi-employer schemes as well as smaller single employer arrangements and has wide experience of both Defined Contribution and Defined Benefit schemes. Jennie qualified in 1986 originally as a criminal prosecutor. She sits as a Magistrate in her local justice area and is an Approved Chairman and Deputy Chair of the Bench Training and Development Committee. Jennie was formerly Legal Director of the Occupational Pensions Regulatory Authority. When her busy practice allows, Jennie likes to indulge her passion for travelling. To consult Jennie on any corporate Pensions matter, please call her on +44 (0)20 7749 2700 or send her an email by clicking below:
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Loved it. Pity it’s likely to be true.
Pete, thank you so much for your kind comment – I think some of it is already coming true!!