Tomorrow's pensions bill could highlight potential stumbling blocks for the Personal Accounts Delivery Authority (PADA), says Aegon.
The provider says an outline of the PADA’S structure and objectives could provide the bill’s most interesting reading.
Rachel Vahey, head of pensions development at Aegon, says any hopes in the bill that PADA will become financially independent will contradict Pensions Minister Mike O’Brien’s claims that personal accounts will “complement rather than compete” with existing pension schemes.
She says the bill could also include raising the contribution limit for personal accounts from £3,600 to £10,000 in the year following the scheme’s 2012 introduction, and address pension scheme exemption from personal accounts.
However, while she expects a "chunky bill", she does not expect much more detail.
She says: “It’s an important step along the way of our journey but I’m not entirely sure how it will take us along with detail.”
Mike Morrison, pensions strategy manager at Winterthur, agrees. He does not expect the bill to discuss much more than personal accounts as last month’s bill addressed the state sector when it outlined proposals to raise the state pension age from 65 to 68 by 2046.
He says: “There won’t be much detail because most will be done by framework legislation with detail coming out at a later date. PADA still has decisions to make about tendering to organisations. I remain excited but I get the feeling there’s not much in it.”
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