- Plans for a single-tier state pension are launched. Critics point out that low and medium earners who are employed for most of their lives and have not built up full S2P by 2017 are among the biggest losers under the change.
- OFT launches a market study into whether DC workplace pension schemes are set up to deliver the best value for money for savers; and bans AMDs for auto-enrolment.
- Which? identifies a pension scheme with a consultancy charge of up to £450 in the first year.
- Consultancy charging is outlawed for future joiners.
- Now: Pensions pays advisers £1 to £2 per employee to communicate the benefits of AE pension schemes it put in place.
- Fiona Dunsire is appointed UK market leader and CEO at Mercer, the consultancy she joined as a graduate in 1988.
- Dame Carol Black and David Frost’s independent review of sickness absence proposes tax relief for return-to-work interventions of up to £500 and a new Fit for Work service.
- RPI is no longer a “national statistic”, says the UK Statistics Authority, because it fails to meet international standards.
- More than $22bn was raised by asset managers in 2011 to spend on research costs and corporate access by opting for bundled trading rather than execution-only dealing, Frost Consulting calculates.
- HSBC exits workplace pensions market.
- Labour’s compulsory OMO broker plan is defeated in Parliament.
“Someone who is 40 years old when the single-tier pension is introduced, and who has always been contracted out, will pay an extra £6,000 in National Insurance over the rest of their working life and in return get an extra £24,000 in state pension over the course of their retirement. That’s a fair deal. And it’s a progressive pension reform.” Chancellor George Osborne, Budget 2013
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