04 January 2008
Mr Tim Jones, chief executive of the Personal Accounts Delivery
Authority, says there is a possibility that the start date for the
new national pension plan, known as personal accounts, may be
delayed beyond April 2012.
Mr Jones has also said that employee contributions would be
phased in over a three year period, starting at 1% in the first
year, rising to 4% after three years. The government has already
announced that the firm's share will be phased in over three years
at 1%, 2% and 3%.
When the new pensions regime begins, everyone in work will
automatically be enrolled in a work based pension - either an
existing scheme or one of the new personal accounts.
Contributions to personal accounts will be calculated on a band
of earnings between about £5,000 and £33,500. Employers
will pay 3%, workers will pay 4% and 1% will come from tax
relief.
People can opt out, but if they do they will be opted back in
every three years and when they change jobs.
