It was only a month ago when the ABI produced there now infamous “10 problems with Steve Webb’s Collective DC plan”. Re-reading it explains why Osborn, the FCA and the general public have been merciless on insurers since the budget.

The article is hopefully a nadir, let’s hope that we never again see such a combination of cynicial obfuscation, unremitting negativity and simple untruths.

Of all the rubbish in the ABI’s paper, it is the assertion that CDC places a much greater burden on employers that I’m going to tackle here. The ABI argue that employers would have the obligation to explain the risks of CDC, the new Annuity Guidance Framework being put together by the FCA, will see this obligation pass to insurers (IGCs) and the trustees and master trustees of occupational pension schemes.

So out with the noisome negativity of 2013 and in with the good news from a new financial year!

So here are the 10 reasons why employers are quids-in under the new pension rules

1. Pension contributions are seen as “reward”. Employers are under an obligation to set up and fund pensions for their staff under auto-enrolment. The new reforms are popular with   pensions are more popular, the whole business of auto-enrolment has shifted from compliance risk to reward opportunity
2. Employing older people will be easier. Good pensions release employers from employing staff who don’t want to work (anymore).
3. Reduced obligations at retirement ; the budget actually reduces the obligation on employers to provide guidance for staff (this will be provided “free” by trustees or providers).
4. Improved options for drawdown; if you buy the  “good for staff, good for us” line then the innovation on the way (such as “predictable drawdown- AKA- CDC) are good news too.
5. Overseas experience(1); although there have been claims that CDC schemes in the Netherlands have cut benefits, this simply isn’t true. The Dutch CDC schemes have maintained public confidence through the financial crisis- popular sentiment for the reforms is likely to be sustainable.
6. Overseas Experience (2); The Dutch (and Scandinavian) DC models which involve collective drawdown and risk pooling are complimented by the American and Australian experiences where it’s left to individuals to manage retirement wealth. Again the feedback is positive – more positive than pre budget UK.
7. Opportunities for paternalism; most large companies have benefited from looking after their pensioners in retirement. The budget restores opportunities for large employers to set up their own collective decumulation vehicles and take on the level of risk that suits them.
8. Small companies can “level up”. The multi-employer master-trusts (NEST , NOW, People’s etc.) are able to offer the same quality of management as large employer decumulation schemes (see 7 above). The pension apartheid between small and big is disappearing.
9. An end to mis-selling; the bad will and benefit devaluation caused by poor sales practices at retirement and before should be a thing of the past. If the FCA get the new Annuity Framework right, people will be free to make informed choices and financial mis-salesmen will be banished from the workplace.
10. A happy workforce; Pensions have been more about strikes than good labour relations of late. The breakdown of trust caused by poor pension practice has been a hindrance to productivity and pension contributions have been a waste of time to the shareholder. If you believe a happy workforce is a productive workforce and that workplace pensions can make people happy, you’ll be happy to run them and fund them.

I know that many people reading this will think that I’ve been on the happy juice, but I can assure you it is 10.30 on a Saturday morning, and it being the Saturday of the Grand National, I’m off to Betfair!

Don’t worry- be happy!