Government will not underwrite Npss

Giving evidence at the Work and Pensions Select Committee’s inquiry into pension reform, Hutton also revealed the government is favouring Lord Turner’s National Pension Savings Scheme (Npss) as a model for the new accounts system. Answering questions on how the proposed Npss will work, Hutton admits there is still a question over how the scheme will be administered although he says the government's "basic instinct" is to go with Turner’s model as it is the one most likely to reach the target cost of a 0.3% annual management charge (AMC). But he says while the government wants the cost...