The Conservative-Liberal Democrat coalition government has announced its support for the legal reform of the structure of private sector pensions in order to introduce a new type called the ‘collective pensions scheme’ or ‘collective defined contribution schemes.’
Government pensions minister, Steve Webb, a Liberal Democrat MP, has stated that he will lend his support to what is regarded by some as a controversial scheme. Supporters say the scheme promises to boost savers’ retirement pots by up to 30 to 40 per cent. Detractors say the scheme is a riskier investments because there is not the same guarantee of income as conventional pension schemes.
Collective pensions work by allowing many different employers to pool together the contributions of their...
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