NAPF welcomes Government decision on Personal Accounts

The National Association of Pension Funds (NAPF) today welcomed the Government’s decision to establish Personal Accounts as a trust-based occupational pension scheme and to introduce a package of measures to support existing workplace pensions.

Commenting on the Government’s response to the pensions White Paper, NAPF Chief Executive Joanne Segars said: “The NAPF welcomes the creation of Personal Accounts which will help millions of people to save for old age. Establishing Personal Accounts as a trust-based occupational pension scheme will ensure that members’ needs are put first. This will help build confidence in the system and ensure that the scheme continues to deliver good value for money.

“Ensuring that the millions of people already saving in good quality schemes can continue to enjoy those pensions is just as important as the introduction of Personal Accounts. We therefore also welcome the package of proposals to support existing provision. Allowing a waiting period of 3 months and allowing phasing in auto-enrolment will help employers manage the costs of auto-enrolment. And a contribution ceiling for Personal Accounts of £3,600 is a sensible compromise that will allow people to pay additional amounts to Personal Accounts whilst ensuring that Personal Accounts remain a targeted intervention, so keeping leveling-down to a minimum.

“Today’s announcement shows that the Government has listened to the workplace pensions industry. We look forward to working with the Government on the details.”