Accommodation For Religious Group Is Problem For British Pension System

In Britain on April 6 of this year, new rules came into effect to offer simple and more flexible retirement pensions. However it now appears that what was intended to be an accommodation for a small religious group could threaten the viability of the whole pension plan. Yesterday's Belfast Telegraph reports that the new pension rules contain an alternative to traditional pensions designed for the Plymouth Brethren, a group that has religious objections to anyone except God calculating one's likely date of death. The rules provide for "alternatively secured pensions" (ASP's) that permit savers to keep their funds invested in the stock market until their death, and then pass on those assets to their heirs. With traditional pensions, nothing goes to one's heirs. The problem that has now surfaced is that nothing in the legal rules limit ASP's to those who have religious objection to traditional pensions. So now many financial advisers are considering suggesting ASP's be used by a broader group of investors. While the Treasury is looking at possible changes to limit ASP's to religious objectors to risk pooling, the Equality Act 2006 prohibits discrimination on the grounds of religion in the provision of goods and services.