A third of company bosses have indicated that they could restrict company pensions accessibility when the government's proposed national pensions savings scheme becomes a reality.
In a survey of 330 UK employers by the Association of Consulting Actuaries, who collectively administer the pensions of 2.1 million workers, 31 per cent of respondents said they are likely to increase eligibility restrictions for their private company pensions after 2012.
Moreover, 76 per cent of employers expressed a belief that the arrival of the government-backed personal accounts system will lead to more attractive company pensions being closed down.
Ian Farr, chairman of the Association of Consulting Actuaries, has expressed concern at the pension revelations.
"While the idea behind personal accounts is laudable - extending pension coverage to more employees - it is clear from these findings that many may lose out unless great care is taken," he said.
The government's national pensions savings scheme is scheduled to be rolled out in 2012.
When it arrives, the initiative will feature automatic enrolment of full-time employees across the UK.
Workers will be asked to contribute a minimum of four per cent of their salary, while companies will put in three per cent and the government will provide one per cent in the form of tax relief.
Restrictions on company pensions likely after 2012, employers warn
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Restrictions on company pensions likely after 2012, employers warn
Fri, 01 Jun 2007
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