14 September 2006
In its response to the Pensions White Paper, the Investment
Management Association says that the proposed National Pensions
Savings Scheme is the best model for meeting the objective of
creating a simple pensions scheme for those who are currently not
saving.
In its response to the Government's White Paper, "Security in
retirement: towards a new pensions system" the Investment
Management Association (IMA) highlights the simplicity of the
National Pensions Savings Scheme (NPSS) model for employers and
savers alike.
The IMA says that employers will be protected from having to
make decisions about provider choice and will simply have to focus
on the transmission of contributions. Savers who do not wish to
exercise choice will have access to a fully diversified default
fund, managed professionally and overseen by a board operating in
their best interests.
According to the IMA, the challenge for Government will be to
ensure that the Scheme retains its objective of focussing on
helping those who do not have their own pension savings. It would
be damaging for Government, savers and the industry alike if the
Scheme is allowed to become the dominant vehicle for long-term
savings.
Richard Saunders, Chief Executive of IMA, commented: "A well
targeted and independently managed NPSS will give everyone -
Government, employers and employees alike - the best deal and allow
the Government to meet its goal of increasing levels of personal
saving for retirement amongst those who are currently not saving
enough. The majority will need a simple default option capable of
generating confidence and offering high quality asset management to
a whole new generation of savers."
