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Request for review of the UK Pension Donation Spark

Request for review of the UK Pension Donation Spark

 


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The company's payments for the UK employee pension have been reduced by 30 % over the past three years and 30 % after inflation adjustment, urging them to worry about whether they are sufficient to support employee retirement.

The UK companies spent $ 36 billion in donation of 36 billion employees from $ 5.2 billion to 36 billion people after adjusting inflation at 43 billion peaks three years ago, according to the National Statistics Office announced this month.

Donations decreased as the return on the British government bonds increased rapidly. This has improved the level of financing of the defined benefit system that pays fixed pensions according to the salary, allowing companies to reduce their reductions in the red.

The government delayed the review of the adequacy of pension, and delayed the review of the pension adequacy, which employees and companies are expected to automatically pay for their retirement system.

The government also announced that it will ease the rules so that companies can access some of the company's DB system, which is believed to be more surplus than pension obligations.

Steve Webb, a partner and former pension minister of consulting LCP, said that if the era of large -scale employer donations ends, it is much less problematic in pensions in practical terms, we are storing problems with tomorrow.

Why you can understand why the employer who faced a very large and fluctuated cost of money did not want to go there again … Measures for the Law [pension] He added that the minimum value is much more important.

The company has paid 14 billion won to the benefit pension system defined by September for one year. Three years ago, the figure was 27 billion or 3.2 billion after inflation adjustment.

Many DB systems triggered enormous defects because the low interest rate period increased its debt value.

However, as the government bond yields have increased in recent years, the level of funds has improved. According to the ONS data, about 90 %of the company's payment to the DB system was reduced due to a low contribution to the deficit.

For three years, employer payments for a definition donation system that provides pensions that depend on investment performance have increased from 15 billion to 22 billion. Most private sectors in the UK have DC pensions.

According to Bina Mission, the head of the company's pension consulting, the increase in the number of employees paid to the DC system was a big reason for the increase in donations. Over the past three years, there has been no significant change in the provision of the company on average.

In accordance with the UK rules for the current DC pension, workers are automatically registered and pay more than 5 % of their salary and at least 3 % of employers.

According to WTW studies, large companies tend to pay more costs and the average minimum donation is about 7 %.

In contrast, the employer donation of the UK and the Wales local government pension system is 15-27 %.

The Pension and Lifetime Savings Association Trade Group estimates that one -fourth of the households with the DC pension would not be enough enough to have at least 22,400 a year.

Joy Alexander, a policy and advocate director of PlSA, said that legislative roadmaps with step -by -step approaches to gradually increase donations to 12 %of total income over the next decade for the majority of Sabers are needed.

In Australia, employers must pay at least 12 %of salaries from this summer, and Ireland's recent laws must divide the minimum donation rate of 12 %and 50/50 between employers and employees. In Italy, employers should contribute more than 7 %.

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