uk The UK’s National Association of Pension Funds (NAPF) had today called for a radical overhaul of existing UK pensions terms, in a bid to increase pensions coverage but at the same time ease funding pressures on employers.

Under the NAPF proposals, companies would be able to create core defined benefit (DB) schemes and pension funds would be freed of the legal obligation to provide indexation and benefits for spouses. The lobbying group also called for The Pensions Regulator (TPR) to be strengthened and given powers over group personal pensions that currently lie with the Financial Services Authority (FSA).

In a report entitled Fit for the future – the NAPF’s vision for pensions, the organisation argued certain benefits, such as spouses’ pensions and indexation, could be paid by DB schemes on a voluntary basis and said in the latter case they should be dependant upon each year’s funding level.