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UK:
Barclays Launches Low-Risk Pension Scheme Ananova
July 1, 2003 UK - Barclays has
launched a new lower-risk pension scheme that will guarantee staff a
percentage of their pension pot. It says the
scheme - called Afterwork - offers greater security compared with money
purchase schemes and a more predictable level of funds on retirement. It is made up of
two elements - the Credit Account which is guaranteed not to fall in
value, and the Investment Account. Employees
contribute a minimum of 3% of their basic salary to the scheme and in
return, Barclays guarantees that an amount equivalent to 20% of the basic
salary earned over the lifetime of their employment will be made available
to them aged 60 to buy an annuity. Barclays
guarantees that the Credit Account will not drop in value and it may even
go up to reflect inflation and investment performance. Employees can
also contribute to the Investment Account by putting in up to a maximum of
3% of their basic salary. This is matched by Barclays and the employee
then decides how to invest the money. Pensions director
Stuart Stephen said: "We believe our new pension bucks recent trends
as it takes away some of the investment risk our employees have been
facing as members of our defined contribution scheme. "It is
designed to cut through the current uncertainty about poor investment
performance by guaranteeing staff part of their pension pot, offering them
a more predictable pension when they reach retirement." Finance union has
Unifi welcomed the scheme. Copyright
© 2002 Global Action on Aging
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