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Welfare Reform on the Web (May 2009): Pensions - UK

Aon cuts pension payments

N. Cohen

The Financial Times, Apr. 8th 2009, p.1

The UK arm of Aon Limited, one of the world's biggest insurance brokers, is to cut its contributions to staff defined contribution schemes by up to half. Aon is the first UK firm to do this, and it is suggested that other companies may follow.

New limit of 10,000 for pension credits

R. Murray-West

Daily Telegraph Budget 2009 special report, Apr. 23rd 2009, B10

Half a million or Britain's poorest pensioners will benefit from the increase in the savings limit for pension credits announced in this year's budget. However, Neil Duncan-Jordan of the National Pensioners Convention is among experts who feel that raising the state pension would be a better solution.

For the full Budget Report, please see the Treasury Budget 2009 website.

Occupational hazards

N. Keogh

Public Finance, Apr. 3rd-9th 2009, p. 24-25

This article considers the implications of the decline in occupational pension provision for the public finances. It concludes that the state will be called upon to provide increased financial support through social security benefits to private sector workers whose income in retirement falls short of the government's minimum income guarantee.

Promises broken on pensions, say industry bodies

Y. Essen

Daily Telegraph Budget 2009 special report, Apr. 23rd 2009, B8

The Association of British Insurers is among those critical of the Government's changes to tax relief on pensions, which mean that from April 2011 people earning more than 180,000 will not get higher rate tax relief on pensions contributions. They will get the basic rate instead. The move will raise 3bn a year for the Government, according to pension consultants Watson Wyatt.

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