ACA: Middle way needed for pensions

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ACA: Middle way needed for pensions

Wed 18th Feb 2009

The Association of Consulting Actuaries (ACA) has called upon the government and members of the opposition to consider a middle way between defined benefit and defined contribution pensions.

Theresa May, the shadow leader of the Commons, stated recently that if the Conservatives are elected, MPs will receive a defined contribution pension. The ACA claimed that this type of pension places 100 per cent of the risk on employees.

Equally, the ACA claimed that defined benefit pensions place too much risk on employers and urged the government to consider middle way pensions for both MPs and public sector employees.

Keith Barton, ACA chairman, said: "Our and other proposals would have given sponsors greater flexibility to hold down costs in difficult economic times, like the present, whilst offering to members a more stable benefit platform than that offered by defined contribution."

The ACA has around 1,700 members working for 80 different companies.

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