Regulation 'raising pension costs for firms'

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Regulation 'raising pension costs for firms'

Fri 6th Jan 2012

The growing level of regulation in the pensions sector has hindered the delivery of profitable schemes by employers over recent years, it has been claimed.

Stuart Southall, chairman of the Association of Consulting Actuaries, told listeners to the BBC Wake Up to Money podcast that the present system is slanted heavily in favour of the employee, with companies facing all the risks and having a huge burden of regulation and compliance.

This has therefore resulted in greater costs for firms over recent years and has meant access to attractive pensions is now dwindling and all parties are suffering as a result.

He commented: "We simply have not had a stable framework in which one could make pension provision."

Robin Ellison, head of strategic development for pensions at Pinsent Masons, also claimed new workers are finding it difficult to secure good pensions from their employer, as recent years have seen a reduction in defined benefit schemes.

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