Ministers from the Department for Work and Pensions (DWP) plan to meet key stakeholder groups from the industry, employers and trade unions in advance of a new pensions summit on the National Pension Savings Scheme (Npss) to be held next month.
James Purnell, minister for Pensions Reform, has revealed during a speech at the EEF, the manufacturer’s organisation, the government plans to hold a summit on the design and introduction of the new personal accounts system before the end of July.
The speech follows comments made yesterday by Purnell in which he stated the government was keen to keep arramgments for a national pensions savings scheme "at arms length".
Purnell says the government will be engaging with employers, industry, consumers and trade unions to shape the policy of the new scheme at the summit, but DWP ministers will also hold a series of meetings with key stakeholder groups over the next few weeks.
He says the white paper has in essence been designed to get people to save more, as at least seven million people are not saving enough for retirement, a situation which needs to be tackled head on.
He claims the new system of personal accounts, with low charges and automatic enrolment, will do this, but he says while the government has made decisions on the principles it now needs to work out the specific design.
The minister says there are currently “two models on the table, one put forward by the Pensions Commission last year, and an alternative model which uses the existing industry infrastructure”.
As a result the two models will be analysed against the following criteria:
- Level of charges, both in the short and long term;
- Value for money for the taxpayer;
- Appropriate type of consumer choice;
- Simplicity for employers and individuals;
- Promotion of personal responsibility;
- Administrative burden on employers;
- Consumer protection.
Purnell says: “We want to deepen and develop the consensus that is emerging around the core of the White Paper. Following the success of the event we held in February we are looking again to stakeholders to help as we assess the models."
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7968 4558 or email [email protected]IFAonline
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