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 emp
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