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Latest NewsPay & benefitsPensions

National pensions scheme shelved until next year

by dan thomas 24 Apr 2006
by dan thomas 24 Apr 2006

The government is reportedly planning to adopt some of the Pensions Commission’s proposals swiftly, but put implementation of a national pensions savings scheme on the back burner.

The scheme was a central part of Lord Turner’s proposals for solving the pensions crisis, but the government wants a lengthy consultation with employers to discuss the compulsory contribution aspects of the scheme, according to the Financial Times.

A “senior government figure” told the newspaper that it would take two years to make the plans workable, drawing out the legislative process with two separate Bills in consecutive parliamentary sessions, the second of which would introduce the savings scheme.

Ministers fear that unless they allow time for talks with employers the legislation might become bogged down in Parliament, hampering progress on an already busy agenda that Tony Blair wants to implement before he leaves office.

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A Bill for reforming the basic state pension is expected to be included in the Queen’s speech in November, but legislation for the national pension savings scheme is expected to be deferred until a separate Bill to be presented in the following session of parliament.

Turner remains steadfast on pension plans

dan thomas

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