Welfare Law Essay Example | Topics and Well Written Essays - 1000 words

Welfare Law - Essay Example In order to manage radical reform we should have the understanding of how sickness and disability might affect our ability to work. In affect, a length of time causing delays in the work cycle as a result. This pause must be considered as a delay in fulfilling work obligations, not a cessation of it. Each of us in one way or another would have benefits for sickness and disability, but we first must understand the Pension Act of 2004 to understand what benefits we have. The Pension Act of 2004 assists employers and employees in protecting members' benefits, while the Financial Assistance Scheme provides help to those who might have lost out before the Pension Protection Fund was established. The Pension Protection Fund goes hand in hand with measures in the Act that primarily help employers to provide pensions. This change would, in effect, compliment the radical tax simplification in this year's Finance Act, which from April 2006 will replace today's eight separate tax regimes with one single regime. The third key dimension of the Act would include a set of measures that will empower people to plan, work and save for their retirement. Employers have a significant role to play in the pensions partnership. This role is one of providing access, information and contributions to pensions for their employees. The workplace would be an effective environment through which people have the ability to save. Administration is more efficient and there would in fact be tax advantages for the employer and the employee. The existence of a good pension provision helps staff recruitment, retention and motivation. Another contributor to the pensions partnership is the Pensions Commission. It in effect would set up the publication of the Green Paper to monitor and independently review the private pensions and long-term savings systems. As a result of ensuing consultation, the Secretary of State for Work and Pensions published 'Working and Saving for Retirement: Action on Occupational Pensions' [Cm 5835]. This publication focused increasinly on needs such as member protection which rank alongside other similarly significant themes. It presaged primary legislation across the areas consulted. Areas consulted would have included a Pension Protection Fund to compensate members of defined benefit and hybrid schemes whose employers become insolvent leaving the pensions scheme unable to meet its liabilities. The European Directive on the Activities and Supervision of Institutions for Occupational Retirement Provision was adopted in September 2003 for implementation by September 2005. The Government wishes for people to make informed choices about how and when to save, and how long to work, so they receive the income they expect in retirement. The Government hopes to empower older people to improve their retirement prospects by keeping them active for longer periods of time. The current state pension age is 65. The age is set here so that no-one is forced to work beyond that unless they want too. But, by tackling age discrimination and freeing people to work part-time while drawing a pension, it hopes to make working longer more attractive. There are plans to: provide a better option for people who choose to draw their State Pension beyond their State Pension age - including a new option to take a lump sum and use it in any manner. ensure that compulsory retirement ages unlawful, unless employers can show that they are objectively justified. allow people to continue working for the same employers while drawing