A former director of Natwest and executive director of Gartmore will head up the independent team charged with rolling out personal accounts.
Paul Myners is set to take up the post of chair designate of the personal accounts delivery authority from August 1. He says he will donate his salary for the role to charity.
On top of his directorial history, Myners is also chair of the Guardian Media Group and Land Securities Group, has held executive positions at Marks and Spencer, O2 and Orange, and has conducted independent reviews for the Government on institutional investment among others.
Personal accounts, set to be introduced in 2012, will extend the benefits of an occupational pension - including an employer contribution and tax relief - to millions of employees who currently do not have access to a good workplace pension.
It will offer low charges to allow employees to keep more of their savings and up to 10 million people will be automatically enrolled in the scheme.
Secretary of State for Work and Pensions Peter Hain says: “The Government is absolutely committed to making personal accounts a success.
“That is why we are setting up an independent body now with the necessary skills and experience to get the policy design of personal accounts right, and to ensure that the interests of members remain at the heart of the scheme.
“The appointment of Paul Myners shows that we are committed to recruiting board members with a proven track record and the expertise to get the job done.”
Myners adds: “Setting up a trust-based, occupational pension scheme, with up to 10 million members, is going to be a major undertaking, and I look forward to getting on with the role.”
The Investment Management Association has welcomed the appointment. Chief executive Richard Saunders, says: “A strong, independent and well-resourced delivery authority is key to making a success of personal accounts. This appointment represents real, tangible progress to that end.
“In Paul Myners the Government has chosen somebody who is eminently well equipped for the role, and we look forward to working with him in the future.”
The Pensions Bill 2006, upon Royal Assent, would allow the delivery authority to be established. Myners would then become chair rather than chair designate.
Under the scheme, employees will contribute a minimum of 4% of their earnings (between approximately £5,000 and £33,500) a year, matched by a minimum 3% employer contribution and around 1% in the form of normal tax relief from the government.
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