Industry consolidation and globalization have significantly changed the industry over the past several years. While many of the largest independent firms have retained their own identities, most are actually owned by either domestic or foreign banks and insurers. The large UK managers generally focus on the domestic institutional markets, though they also generate a significant number of mandates from foreign investors. The United Kingdom has the largest funded pension system in Europe. It provides a minimum level of income at a flat rate to all retirees based on age and years of residence in the United Kingdom.
Contributions are mandatory, unless an individual participates in a qualified occupational scheme.
Occupational Schemes Occupational schemes are offered by many public and private employers. Most plans are established as trusts, with an oversight board. For most schemes, members contribute along with employer contributions. The current trend toward money purchase schemes and lower level of contributions is raising concern that employees will be worse off under money purchase schemes and that their pensions will not support them in retirement. The most significant issue that has impacted the industry was the fraudulent selling of pension schemes in the late 1990s.