NAPF responds to EEF call for pensions financial help

Responding to proposals by manufacturers’ organisation EEF for providing smaller firms with financial assistance when Personal Accounts are introduced, National Association of Pension Funds (NAPF) Chief Executive, Joanne Segars said: “We should not forget that it’s not only small companies contributing to pensions for the first time that will need help.

“Employers with existing schemes will face additional costs – of around £2bn – when auto-enrolment is introduced in 2012. These businesses will also need support to ensure that current good workplace pension provision continues.”

In order to help employers providing good provision with the increased costs of the automatic enrolment of all their employees, NAPF has proposed that the Government should adopt a fiscal incentive. The proposal forms part of Personal Accounts: Hitting the target – NAPF’s response to the Pensions Reform White Paper – and would also help promote levelling-up and encourage employers to auto-enrol employees into a pension at today’s typically high level. This Good Pension Fiscal Incentive (GPFI) would apply for a short transitional period – probably the three year period for the phasing in of mandatory contributions.

Ms Segars said: “Importantly, the GPFI would send a signal to employers that the Government supports those doing more than the statutory minimum - a message that the Government cares about maintaining good existing pension provision.”