ABI calls victory for existing schemes in Pensions Bill

Following extensive lobbying from the Association of British Insurers (ABI), the decision was taken during the report stage of the Pensions Bill. There will not be a higher contribution cap in the first year of personal accounts and no facility to add lump sum contributions, although this will be reviewed in 2017. Failing to impose a contribution cap may have encouraged savers to opt for personal accounts ahead of other schemes. The ABI says the Government’s decision will help ensure personal accounts stay focused on their target market of low and moderate earners, complementing rather t...