Trust selling Highland clan’s land for \u00a36.8m under investigation<\/a>\n<\/p>\n\n Even with an initial contribution rate of 15% the fund would grow quickly so that there would be a large fund available for investing in the Scottish economy and with capacity to meet its obligations to pensioners.\n<\/p>\n
\n Once the NPF has been established, existing workers can be offered the opportunity to transfer their second pension(s) into the NPF. Transfers between pension funds are already common.\n<\/p>\n
\n A transfer would be based on the cash value of existing pension(s), which then earns a credit for contributions into the NPF. Suppose a cash transfer is valued at \u00a345,000 and the required annual contributions to the NPF based on current earnings are \u00a34500 per year; the transfer value would earn a 10 years\u2019 credit.\n<\/p>\n
\n Transferring into the NPF would be attractive to those who have a DB pension as the value of their \u201cpension pot\u201d (the total of their contributions and investment returns) would be converted into an earnings-related pension.\n<\/p>\n
\n In an NPF, the investment risks are pooled across the whole working population and employers.\n<\/p>\n
\n In addition, the state, with the benefit of issuing its own currency, can guarantee the fund. The state would function as the \u201csponsor\u201d of the NPF but, unlike a sponsoring employer, it cannot run out of money nor is it likely to cease trading.\n<\/p>\n
\n The guarantee would provide additional funds to the NPF in the event that cashflow into the fund was insufficient to pay all pension obligations. It is highly unlikely that a well-designed, well-managed and fully accountable NPF would ever need to call upon this state guarantee.\n<\/p>\n
\n It is intended that the NPF would be a provider of a DB-based second pension in addition to a state pension. The replacement of the flat-rate state pension inherited from the UK with an earnings-related state pension (SERP) would complete a new model for pension provision in Scotland.\n<\/p>\n
\n How much of total pension comes from the SERP and the NPF would be a matter for public consultation.<\/p>\n","protected":false},"excerpt":{"rendered":"The NPF can also be designed to provide earnings-related pensions to all citizens in addition to a state…\n","protected":false},"author":2,"featured_media":60454,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-60453","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/60453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=60453"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/60453\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/60454"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=60453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=60453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=60453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}