Employee benefits news: Govt''s pension plans will have ''huge effect''

Many workers may be interested to find out if the government''s proposed pension changes can put the onus on organisations to implement employee benefits packages.

According to Churchouse Financial Planning (CFP), the plans will have a "huge effect" on the amount of money paid to people when they retire.

It will also mean people will need to pay attention to their financial affairs much earlier, the firm claimed.

July 8th 2010 saw pensions minister Steve Webb unveil plans to alter the way inflation is calculated when devising private sector pension payments.

He revealed this is likely to move from the retail prices index to the consumer prices index, as the latter is usually higher - meaning that millions may see their pension funds cut.

Reviewing the proposals, CFP director Keith Churchouse said: "When you''re looking at small percentage points per annum it doesn''t look very much, but when you add it up over five or ten years it starts to make a huge difference."

One way organisations can reduce the financial burden on staff in the short term is to implement an employee benefits scheme - this can include offering childcare vouchers paid for through salary sacrifice. Back