CIMPs set to make a comeback

Contracted in money purchase schemes look to be back in style as an increasing number of large employers close their defined benefit schemes to new members and look for plans with similar features

By the late 1990s, many advisers had written off the contracted in and contracted out money purchase scheme (CIMP/COMP) as an anachronistic product that could not compete with the simplicity of group personal pensions (GPPs). Following the introduction of stakeholder schemes this year, even GPPs have felt the pinch, and providers have slashed charges across the board to maintain their competitive edge. What hope then for the rather complicated and widely misunderstood CIMP in this brave new world? Surprisingly, CIMPs are alive and well and look set to make a comeback as an increasing num...