Defined benefit schemes to become more expensive following April 2005

pensions

The Pensions Bill, which comes into force in April 2005, will add to costs in areas such as the financing of the Pension Protection Fund, the training of trustees and the cost of matching existing contributions when members are transferred from one scheme to another

The Pensions Bill 2004, expected to come into force in April 2005, will increase the costs of providing a defined benefit scheme. This cost is likely to hit employers least able to afford it. Furthermore, the effects of the Pensions Bill on transactions could have dramatic effects on transactions. From April 2005 groups of companies with a defined benefit pension scheme may find it increasingly difficult to compete when buying or selling companies against groups of companies which do not have defined benefit schemes. The Government has estimated that the Pensions Bill and the Finance Act ...