A consultation on the draft scheme order and rules for personal accounts (PAs) has today been launched by the Personal Accounts Delivery Authority (PADA) and the Department for Work and Pensions (DWP).
The Government scheme, designed to boost the pension savings of Britons and set to be introduced in 2012, will see workers aged between 22 and state retirement age who are earning more than £5,000 a year automatically enrolled into PA or a suitable work-based pension scheme.
Workers will put in a minimum of 4% of their salary, the employer a minimum of 3%, and there will be 1% from the Government in tax relief.
However, the scheme has been criticised with some arguing the Government will not grow UK pension provision in the way it hopes. Others have labeled Government targets both "unambitious" and "unlikely".
Previously, the Government has said the majority of people using PAs will receive £1 back at retirement for every £1 invested today, discounting employer contributions.
The consultation is available to view here.
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