12-03-2008
Employers' liability puts businesses off occupational pension schemes
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Small business owners could be among those deterred from offering certain types of pension schemes as a result of increasing employers liability insurance costs.
A spokesperson for the National Association of Pension Funds (NAPF) made the suggestion, explaining that increased employers liability could be a consideration for many employers.
"Increases in liabilities alongside increasing regulatory costs may cause the employer to change the type of pension they offer their employees," the commentator said.
He added that for employees, the key issue is that payment promises made by scheme administrators are met.
Pensions provision is among the many business finance considerations for start-ups, along with the potential need for business insurance and security insurance.
Last year, the Occupational Pension Schemes yearly report by the Office for National Statistics found that UK employers offered 37,540 such schemes in 2006.
This was just 60 per cent of the number of occupational pension schemes available to workers in 2000.
