0 used to describe a type of pension in the UK in which the money you put in while you are working is invested, and the amount you receive when you stop working depends on how well the investments perform: --
I have a money-purchase company pension scheme and my contribution is 3% of salary.
If one goes about reform hamfistedly, an increasing number of employers will wind them up and go into money-purchase schemes.
If money-purchase schemes are unable to contract out, those people will be seriously affected.
It would be a reasonable reform, and it would serve the good purpose of encouraging trustees to adopt conventional money-purchase principles.
We have accepted this by agreeing that the compensation arrangements should cover money-purchase schemes where there has been dishonest removal of assets.
Essentially, we must make it cheaper for firms to keep final salary schemes going while making it more expensive to switch to money-purchase schemes.
We should end the state earnings-related pension scheme and ensure that everyone has a money-purchase scheme instead, building up during their lifetimes.
That is what is basically wrong with the structure of a money-purchase scheme.
Above all, the motion asks us to amend a money-purchase scheme, which by its nature is substantially unamendable.
