The decision not to allow transfers in and out of personal accounts could lead to employees being trapped in "high charging, poor value personal pensions", warns the Trades Union Congress.
In its response to the pensions white paper: ‘Personal Accounts: a new way to save’ the TUC welcomes the idea of the new system, but points out there are a number of risks in the run up to the implantation of the system in 2012 which will “require vigilance by the government”. The 32-page document says while the decision not to allow transfers is “understandable in relation to the desire to protect existing schemes”, it warns it could expose employees to “the risk of the financial services industry attempting to sell personal type pensions in the run up” to personal accounts. The TUC ...
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