Pensions Week recently invited the pensions industry to submit new occupational pension scheme ideas for publication and discussion. They were looking for ideas that were less expensive than current final salary schemes, but more attractive to employees than DC in its current form. The OPA does not necessarily endorse any of these proposals but welcomes the dialogue.
It is highly desirable that simple risk-sharing designs should be created to provide attractive and sustainable alternatives to both DB, where all risks are assumed by the employer, and DC or personal accounts, where all risks fall on the member. It is clearly inequitable to expose lower paid workers in particular to all the market risks which they may not understand.
See:
DB light
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