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UK insurers block entrance to British form of PRSA pension.
(From Irish Independent)
PRSA providers watch out - the UK version of the scheme is in serioustrouble.
It has emerged that insurance companies are denying thousands of companies access toBritain's PRSA counterpart, called stakeholder schemes, because they are seen asunprofitable.
Major insurance companies, including Norwich Union, Prudential and Standard Life, arerefusing to offer stakeholder pensions to a raft of small companies, forcing them to breakthe law and risk a GBP50,000 fine, according to reports across the Irish Sea.
Insurers claim that such schemes are not commercially viable, unless significant numbers of staff within a company actually pay into the scheme.
Under a UK law introduced in 2001 to encourage employees at smaller businesses toprovide for their own retirement, companies employing five or more staff must offer a low-cost ...
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