§ 16. Mr. PollardTo ask the Secretary of State for Work and Pensions what plans he has to encourage companies to retain existing final salaries pension schemes and to make them available to new employees; and if he will make a statement. [45027]
§ Mr. McCartneyWe welcome the fact that many employers continue to provide occupational pensions on a voluntary basis to their employees. Final salary and money purchase schemes can both provide good incomes in retirement as long as sufficient contributions are made. When deciding what type of scheme to offer, an employer must take into account the costs of doing so and the long-term impact on their business. The Government want to create an environment in which employers can continue to provide occupational pension schemes. We want to remove unnecessary burdens on schemes. As part of this we have announced the replacement of the Minimum Funding Requirement. We have already introduced interim changes to the MFR designed to enable it to operate more effectively. We have commissioned Alan Pickering to report in summer 2002 on ways to simplify the overall burden of regulation on schemes and will he publishing proposals later this year.