PENSIONS

THE GOVERNMENT'S White Paper, “Strategy for Pensions” and the consequent legislation, which will be implemented this year, aims to introduce the principle and practice of guaranteeing employees minimum standards of pension provision and minimum benefits for their dependants. The State will provide a flat basic pension which will be constantly revised in line with average earnings and — on top of this — a second tier pension related to pay. This second tier pension can be provided instead by means of contracted‐out private occupational schemes. The conditions for contracting out and the problems of introducing an occupational scheme confronts employers with challenging policy decisions and major administrative burdens. This survey by leading specialists in the pensions field identifies the alternatives and points the way to an effective scheme for your company.