Defined contribution members
The proposals under consultation are for changes to final salary pension schemes across the NDA estate.
Members of defined contribution pension schemes are not directly affected, but the approach taken by the NDA does have a significant impact on members of those schemes – see below.
All employees of the companies covered by the consultation are entitled to respond, so even if you're a member of a defined contribution scheme we asked you to comment. We've produced guidance on how to respond.
How the proposals could affect defined contribution members
- The NDA is basing the case for reform on the 2012 public sector pension reform process, but it has ignored the fact that those reforms resulted in a defined benefit pension scheme being available to all employees. An appropriate* defined benefit pension scheme would not only be better for members of defined contribution schemes but would improve the cash-flow position over the period of the comprehensive spending review. So it would have advantages for all other employees, employers and taxpayers too.
*Not all the options currently being considered by the NDA are appropriate.
- If proposals that breach statutory commitments on pensions are imposed, this will have a significant impact on the ability of any employee to have any trust or confidence in any agreement made with their employer in the future.