19 March 2007
The National Association of Pension Funds has welcomed the
Government's pension reform package, but has urged Ministers to
ensure that Personal Accounts serve those without access to a good
workplace pension and do not undermine existing high-value
provision.
The National Association of Pension Funds (NAPF) has published
its response to the Government's White Paper, "Personal Accounts: a
new way to save?" The response sets out the NAPF's support for the
Government's reform package but urges Ministers to ensure Personal
Accounts serve those without access to a good workplace pension and
does not undermine existing high-value provision.
It calls on the Government to provide support for today's good
pensions and draws on the experience of occupational pensions to
make recommendations for the governance and structure of Personal
Accounts.
Joanne Segars, NAPF Chief Executive, said: "The Government's
reform package, auto-enrolment and mandatory employer contributions
into either the best of today's workplace pensions or Personal
Accounts, will revolutionise pension saving.
"But the reforms entail some risks: the risk of levelling down;
the risk of poor design for the target group; and the risk of
weakening the employer link. So the Government must design Personal
Accounts to hit the target group and provide support to existing
pension provision.
"The good stewardship of Personal Accounts will be essential to
encourage trust and participation. Our proposals for the structure
and governance of the Personal Accounts regime draws on the
experience and best practice of today's occupational pension
schemes. We look forward to working closely with the Government on
making Personal Accounts a success."
