Welfare Reform on the Web (July 2003): Pensions - UK

THE DUTY OF GOOD FAITH: HOW DOES IT APPLY TO THE TERMINATION OF A PENSION SCHEME?

T. Illston

Pensions, vol. 8, 2003, p.205-215

Considers if the principle of "the duty of good faith" could help trustees resist an employer's decision to terminate an occupational pension scheme. It also considers the possible response of trustees to a notice of termination, including a demand for increased contributions in the light of the Unisys New Zealand case.

THE FUTURE OF UK PENSIONS

Work and Pensions Committee

London: TSO, 2003 (House of Commons papers, session 2002/03; HC92)

Concludes that the UK pension system is basically sound and not in crisis. However the system is over-complicated, there is too much pensioner poverty and a lack of security of private pension funds. The Minimum Income Guarantee and the new Pension Credit are reducing pensioner poverty in the short term, but may not be sustainable long term. Agrees that one way to raise pensions is for people to work longer, and welcomes proposals to increase the flexibility with which private pensions can be drawn. Analyses two broad policy options for the state pensions system:

• continuing to target resources through means-testing;

or
• raising the level of state pensions.

Discusses the advantages and disadvantages of these two options, including a number of financing options such as raising the state pension age.