Workplace the heart of pension provision

Government plans for a new system of Personal Accounts could ensure the workplace remains at the centre of retirement saving, the National Association of Pension Funds(NAPF) said today.

Responding to the Government’s latest Pensions White Paper, the NAPF commended Ministers’ commitment to supporting and enhancing high quality employers’ pensions which already provide valuable retirement benefits for millions.

NAPF Chief Executive, Joanne Segars, said: “We have given Ministers two key messages: keep Personal Accounts simple, and build on the best of what’s already there. Today’s White Paper shows that these messages are being listened to.

“The proposed new system of Personal Accounts should offer millions of working Britons a new opportunity to save for retirement. But it will only be effective if it is simple. The Government’s proposals recognise this.

“It is equally important that the millions who are currently saving in today’s workplace pensions continue to benefit from the high value of contributions on offer, and we welcome the Government’s package of support for existing provision:

Designing Personal Accounts for the target group by adopting a simple Suitable Alternative Schemes test, placing limits on contributions and prohibiting transfers.

Providing encouragement for the NAPF’s Good Workplace Pension quality mark for employers offering pensions well above the planned minimum employer contribution of 3%.

“However, there is still one piece of the jigsaw missing – fiscal support to encourage employers offering high value schemes to auto-enrol all their staff into their schemes at today’s high contribution rates. We shall be talking further to the Government on this important issue in the coming months.”