Government allows cash pensions
Mon 17 Mar 2008
13/03/2008
The government is to allow employees to collect a cash payment instead of their occupational pension schemes. Chancellor Alistair Darling announced the changes as part of his first budget. Workers will now be able to apply for the one-off sum on savings below £2,000, without having to find details of additional pensions. Joanne Segars, chief executive of the National Association of Pension Trusts (NAPF) explained that schemes would benefit from a simplified process and would save on costs. She told employeebenefits.co.uk: "While we would have liked the government to allow a higher limit than £2,000, this measure will still be enormously popular with administrators and trustee." Fewer employers now offer final salary pension schemes and employees tend to switch jobs and either commute their pensions, or maintain private schemes.
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