DWP explores protection fund for DC schemes

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The Department for Work and Pensions (DWP) is considering setting up a lifeboat fund for defined contribution (DC) schemes funded by a levy on contributions.

Pensions minister Steve Webb revealed yesterday this is one of several options which could be included in a white paper on reinvigorating occupational pensions to be published before the end of the year. Speaking at a Dimensional conference on risk-sharing, Webb said the working group looking at the ‘DC-lite' strand of his defined ambition agenda is focusing on guarantees. He said money-back guarantees are not necessarily prohibitively expensive with the cost estimated at between 60 and 100 basis points by the Actuarial Profession (PP Online, 24 October) and some providers prepared to...

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