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Latest NewsPay & benefitsPensions

Call for National Pensions Savings Scheme to avoid damaging occupational pensions

by Emma Ann Hughes 5 Oct 2006
by Emma Ann Hughes 5 Oct 2006

The Delivery Authority responsible for introducing the National Pensions Savings Scheme must ensure existing occupational pensions are not damaged, the Association of British Insurers said.

In a speech today to the Chartered Insurance Institute in Glasgow, Stephen Haddrill, director general of the Association of British Insurers, will call on the government to make the Delivery Authority’s responsibilities clear.

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He has already written to work and pensions secretary, John Hutton, demanding that the government should also require the Delivery Authority to set up the new personal accounts in 2012 without subsidy from the taxpayer, and the mandatory employer contribution should be set in law at 3% of earnings.

Haddrill said: “We are fast approaching the time when decisions will have to be made on personal accounts. Their time has come. They could encourage pension savings by millions of people who are currently saving little.”

Emma Ann Hughes

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