Bee predicts large-scale contracting back in to S2P

Changes outlined in the Pre-Budget Report could force occupational schemes to contract back in to th...

Changes outlined in the Pre-Budget Report could force occupational schemes to contract back in to the State Second Pension, according to Scottish Life’s Steve Bee. He said that changes to S2P, which the PBR announced will be coming forward to 2009, mean the rebates paid to contracted-out final salary schemes will be reduced. Employers running contracted-out final salary schemes will have to pay in more to make up the difference or get their employees to accept lower benefits as a way of keeping the costs down, added Bee, head of pension strategy at the group. “One way for employers to...