The Personal Accounts Delivery Authority and department for work and pensions have gone out to consultation on the draft scheme order and rules for personal accounts.
It also proposes setting up a members' panel and an employers' panel to provide a member and employer viewpoint to the trustee and "act as a sounding board" for ideas and suggestions proposed by the trustee.
However it said including member nominated-nominated trustees would prove a "costly and ineffective mechanism for representing members' views" - noting the members' panel would participate in the recruitment and selection process for all members of the trustee corporation in addition its broader function of representing members' views to the trustees.
The government said it would undertake a role similar to a sponsoring employer - and would have to agree to any changes to the scheme.
The proposals also contain provisions to exonerate and indemnify trustees from any liability arising from running the scheme.
The consultation said the DWP intends to consult on possible approaches to implementing the new employer duties in Autumn this year - but would probably stage the introduction of these duties in order to mitigate the initial peak of activity for both personal accounts and existing occupational provision.
It said PADA wanted to launch the personal accounts scheme prior to the introduction of the employer duties to allow it to test the majority of the scheme's administration processes.
The proposals also confirmed contributions to the scheme would be set at a minimum of 4% of salary for workers and 3% for employers, with 1% from the government in tax relief.
It said these contributions would be subject to a maximum of £3600 a year (in 2005 terms).
It said no transfers into or out of the scheme with generally be accepted.
The consultation said: "We believe these proposals strike the correct balance between setting a framework for the trustee corporation to run the scheme and the wider public policy objectives of establishing a scheme to enable all employers to fulfil their employer duty and allow moderate to low income earners to save for their retirement."
It added: "The proposals also take account of the best practice of pension schemes whilst recognising the unique nature and scale of this scheme."
The draft rules are available on the DWP website.
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