News: Call for radical 'middle way'.

Pensions Week, May, 2007

Byline: Hannah Williams

Actuaries have called for a radical extension to risk-sharing legislation to provide a middle way of pension saving, despite lukewarm enthusiasm from the government.

Ian Farr, chairman of the Association of Consulting Actuaries (ACA), said a new strategy for pensions saving was necessary to cope with the inevitable 'second wave' of closures in final salary pensions when employers closed schemes to future accruals.

He said: "Companies who used to take on 100% of pensions risk don't want to pass 100% of it onto their employees, but many do because there is not an easy bolt hole open to them."

Farr cited new research from the ACA, which found 72% of employers were in favour of public policy promoting the use of...

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