More and more companies with big deficits in their pension funds are offering their employees cash to leave final salary schemes and put money into a private pension instead. (Ref. 070110)
This practice, legal even though somewhat “cow-boy,” is worrying the chief executive of the Pensions Advisory Service (association to advise the public on pensions,) Malcolm McLean: “it is highly unlikely to be in member’s long term interests.” This way, in exchange for a few thousand pounds, they give up a pension entitlement based on their final salary. Instead, it will be based on their assessment level and on the stock’s performances. Malcolm McLean is not sure that “people know what they a
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