A radical overhaul of the pensions structure is needed to help staff to save
for retirement, according to a report published last week.
Pensions – Plain and Simple, by the National Association of Pension Funds
(NAPF), calls for the scrapping of compulsory retirement ages and the abolishment
of rules limiting employees from joining more than one pension scheme.
The report also backs the Government’s move to change Inland Revenue rules
to allow employees to draw part of their pension while working for the same
employer (News, 8 October).
It also recommends axing rules limiting the amount staff can pay in to their
pension fund.
David Yeandle, deputy director of employment policy at the Engineering
Employers’ Federation, backs the report’s plan to simplify the pensions
environment.
He believes the recommendations – particularly allowing staff to access a
firm’s pension while still working for the same organisation – would give both
employers and staff confidence to plan for the future.
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Peter Thompson, chairman at the NAPF, claims employers would benefit from
the report. "Today’s pension’s system is weighed down by red tape and
jargon which puts off workers from thinking about pensions, storing up
potentially massive problems for the future," he said.
"[Our proposals are] practical and affordable steps to encourage
employers to offer workplace pensions, and encouraging staff to make the most
of them."
