05 July 2006
The Investment Management Association says that the proposed
National Pensions Saving Scheme offers the best deal for the small
employers, whose participation is vital to its success.
Speaking earlier last week at the Association of Corporate
Treasurers' Pensions Conference on the issue of a National Pension
Savings Scheme, Richard Saunders, Chief Executive of the IMA said:
"Of the options put on the table in the White Paper, the National
Pensions Saving Scheme offers the best deal for the small employers
whose participation is vital to its success.
"It offers employers a single point of contact in respect of all
their staff; a one-stop shop for all their needs under the scheme.
It also offers the clear option of a professionally-managed default
fund in which employers and employees alike can have confidence.
Thus, compared with other options, it minimises the administrative
hassle which is the most off-putting factor for small
businesses.
"It also means that small employers need not fear being in the
firing line if things go wrong. The existence of clear default
arrangements avoids any question of employers having to make
choices of providers or funds for their staff, and any question of
future liability. The responsibility for ensuring proper investment
of members' assets would lie with the Scheme's independent
Board.
"Auto-enrolment requires sustained levels of participation if it
is to succeed. That means retaining the confidence of both
employers and employees. The NPSS offers the best chance of
delivering that."
