Government calls for cooperation to boost pensions plan
The government has called for pension scheme operators across the country to help boost its attempts to provide financial assistance to people who have lost their retirement savings funds.
Pensions reform minister Mike O'Brien wants to see an end to trustees purchasing annuities on behalf of their members and instead allow an official review to identify lost funds that the government has pledged to match.
In this way, the Department for Work and Pensions (DWP) is convinced members of collapsed pension schemes will be better served and the goal of seeing retirees receive 90 per cent of their core occupational pension fund could be achieved.
"Trustees must continue to act in their members' best interests, but we hope they will now take the view that those interests may not be served by expending scheme assets on annuities," said Mr O'Brien.
"The government will match the extra funds that the Young Review identifies as and when these are released by trustees and we expect this to be achieved as quickly as possible."
Among the stated aims of the DWP is to end child poverty in the UK before the end of 2020 and to promote work as the "best form of welfare".
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